# Startup funding falls 83% YoY in Feb 2023

URL: https://technosports.co.in/startup-funding-falls-83-yoy-in-feb-2023/  
Published: 2023-03-04  
Updated: 2023-03-04  
Author: Nivedita Bangari

According to Morgan Stanley, startup funding by private equity and venture capital firms fell to an eight-month low of $596 million in February, representing a decrease both month over month and year over year.

The slowdown in PE-VC funding has been dramatic, both in terms of funds raised and the number of deals completed. Startup funding fell by more than 83%, from $3.6 billion in February 2022 to $596 million in February 2023. According to the report, the total number of transactions fell from 103 to 35.

However, the decrease in investments in startups by PE-VC firms is not a new trend. In July of last year, fundraising plummeted. The total investment by PE-VC firms between January and June 2022 was $17.9 billion. However, startups only raised $5.4 billion between July and December 2022.

## In the first six months of 2022, startup funding raised an average of $3 billion per month, which fell to $900 million in the final six months of the year.

![Startup funding](https://technosports.co.in/wp-content/uploads/2023/03/960x0.jpg)
*credit: businessinsider*

Fintech and food startups emerged as the month’s top investments, accounting for nearly 60% of total investments. In February, six fintech startups raised a total of $280 million: Insurancedekho, PhonePe, Mintoak, Stable Money, LoanTap, and LoanKuber.

According to the report, investment trends have shifted. While 66% of fintech investments went to lending businesses last year, 63% of investments in February 2023 went to fintechs providing payment gateway solutions.

FreshToHome, a single startup funding, raised $104 million in the restaurant & food category. Its Series D funding round was led by Amazon Smbhav Venture Fund and will be used to open 100 retail locations.

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[Source](https://www.businessinsider.in/business/startups/news/startup-fundraising-hits-an-8-month-low-in-february-falls-over-83-yoy/articleshow/98390347.cms)