• Following a record year for venture financings and IPOs, the tech financing market is largely frozen in 2022, particularly at the late stage.
  • Companies are doing what they can to avoid raising cash in the dreaded down round.
  • At the earlier stages, companies are being forced to show a more efficient sales model and strong revenue retention in order to capture investor interest.
Cube CEO Christina Ross (middle) with her team

When Cube CEO Christina Ross kicked off fundraising efforts for her financial planning software startup in February, cloud stocks were already down 40% from their 2021 highs. They had a lot further to drop over the next few months.

By the time Cube announced its $30 million Series B deal in mid-June, the broader market was about to close out its worst first half in 50 years, led by a collapse in high-growth tech stocks, which had been the top outperformers in the Nasdaq Composite's ascent to a record in November.