Silicon Valley Bridge Bank, N.A. is a newly created, full-service FDIC-operated ‘bridge bank’. Learn more here
Complete your banking transactions with ease and security.
Get customized services to help support your global business.
Strategize with our financial experts to help you achieve your business goals.
Our bankers have years of real-world experience to provide guidance across a number of industries.
SVB research, blogs and webinars to give your business crucial advantages in decision-making.
Register for upcoming live webinars and access recorded webinars to learn about the latest trends for your business and industry.
For over 35 years, SVB has helped businesses grow and thrive across the innovation economy
SVB’s values guide our actions, from our approach to supporting small businesses to community engagement to our ESG reporting.
Let SVB experts help your business with the right mix of products, services and strategic advice.
Register for upcoming live webinars and access recorded webinars to learn about the latest trends for your business and industry.
Insights from the bank of the innovation economy.
Download now
Oops, we ran into an error loading the form, please check back later.
54%
US VC investment year-over-year (YoY) increase in commerce enablement — an encouraging statistic in a difficult fundraising year for most consumer tech subsectors.
1 .5X
Median burn multiple for early-stage companies in Q4 2022, down from a high of 3.1x in Q1, as consumer tech companies pivoted towards profitability and reduced cash burn.
4.3X
Median valuation step-up from seed to Series A, a slight drop from 2021 but higher than the 2.8x step-up in 2020, an indication that VC demand remains strong for early-stage consumer startups.
Consumer tech companies are cutting costs and maximizing revenues to maintain liquidity. The economy and elevated inflation is squeezing runway which is down to a median of 11.4 months of remaining liquidity.
Less runway combined with longer wait times between deals may pressure founders to consider an add-on round, down-rounds or alternative financing tools such as venture debt or down-rounds.
Consumer tech revenue dropped as post-pandemic consumer behavior shifted and consumer spending decreased. In Q4, 61% of VC-backed consumer companies posting quarter-over-quarter revenue gains, down from 75% last year.
To compensate for softer revenue, consumer tech companies are adding new income streams and cutting spend with the bulk of cuts coming from areas like talent.
Capital investment fell across most consumer tech subsectors from 2021 highs, but momentum from the uptick in digital commerce during the pandemic helped fuel US VC investment in commerce enablement by 54% YoY. The reverse logistics niche within commerce enablement saw a 57% uptick in deal activity YoY.
With the window closed on public tech exits, consumer tech companies must be more efficient, better equipped for long-term growth and look for ways to capitalize on shifting consumer trends.
Capital scarcity in this difficult funding environment has caused valuations to rebase. Later-stage valuations have fallen to pre-pandemic levels while seed-stage valuations have plateaued.
Consumer tech companies are focusing on unit economics as metrics like lifetime value (LTV) and cost of acquisition (CAC) are under greater scrutiny by investors who want to know that their investment will be put efficiently to work.
Our deep relationships with top entrepreneurs and investors inform our insights and give us a vantage point unlike any other bank.
The views expressed in this report are solely those of the authors and do not necessarily reflect the views of SVB. The material contained in this document, including without limitation the statistical information herein, is provided for informational purposes only and is not intended to forecast or predict future performance or events, including in relation to the performance and outlook of SVB Financial Group and its subsidiaries. The material is based in part on information from third-party sources that we believe to be reliable but which have not been independently verified by us, and for this reason, we do not represent that the information is accurate or complete. The information should not be viewed as tax, investment, legal or other advice, nor is it to be relied on in making an investment or other decision. You should obtain relevant and specific professional advice before making any investment decision. Nothing relating to the material should be construed as a solicitation, offer or recommendation to acquire or dispose of any investment or to engage in any other transaction.
All non-SVB named companies listed throughout this document, as represented with the various statistical, thoughts, analysis and insights shared in this document, are independent third parties and are not affiliated with SVB Financial Group. Any predictions are based on subjective assessments and assumptions. Accordingly, any predictions, projections or analysis should not be viewed as factual and should not be relied upon as an accurate prediction of future results.
Silicon Valley Bank is an authorized foreign bank branch under the Bank Act (Canada).
SPD, SHANGHAI PUDONG DEVELOPMENT BANK, and 浦发银行有限公司 are trademarks, separately and in combination, of Shanghai Pudong Development Bank, Ltd. in China, and are used under license. SPD Silicon Valley Bank is a Sino-U.S. joint-venture bank of Silicon Valley Bank, the California bank subsidiary and commercial banking operation of SVB Financial Group, and Shanghai Pudong Development Bank.
Silicon Valley Bank is not licensed to undertake banking business in Denmark or to undertake any other regulated activity in Denmark.
Silicon Valley Bank UK Limited is not licensed to undertake banking business in Sweden or to undertake any other regulated activity in Sweden.
Silicon Valley Bank, Silicon Valley Bank UK Ltd and SVB Financial Group UK Limited are not licensed in Ireland to undertake banking business in Ireland or to undertake any other regulated activity in Ireland. SVB Financial Group UK Ltd is registered in England and Wales at Alphabeta, 14-18 Finsbury Square, London EC2A 1BR, UK under No. 5572575.
Silicon Valley Bank UK Limited is registered in England and Wales at Alphabeta, 14-18 Finsbury Square, London EC2A 1BR, UK (Company Number 12546585). Silicon Valley Bank UK Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority (Firm Reference Number 543146).
Silicon Valley Bank Germany Branch is a branch of Silicon Valley Bank. Silicon Valley Bank, a public corporation with limited liability (Aktiengesellschaft) under the laws of the U.S. federal state of California, with registered office in Santa Clara, California, U.S.A. is registered with the California Secretary of State under No. C1175907, Chief Executive Officer (Vorstand): Gregory W Becker, Chairman of the Board of Directors (Aufsichtsratsvorsitzender): Beverley Kay Matthews. Silicon Valley Bank Germany Branch with registered office in Frankfurt am Main is registered with the local court of Frankfurt am Main under No. HRB 112038, Branch Directors (Geschäftsleiter):Phillip Lovett, Dayanara Heisig.
SVB Israel Advisors Ltd. is a subsidiary of SVB Financial Group. Neither SVB Israel Advisors nor SVB Financial Group is licensed to conduct banking business or provide other financial services in Israel and neither engages in unlicensed banking activities. Banking services are provided by Silicon Valley Bank, a member of FDIC. Silicon Valley Bank is not supervised by the Supervisor of Banks in the Bank of Israel but by the US Federal Reserve Bank and the California Department of Financial Protection and Innovation (DFPI).
If you no longer wish to receive marketing communications from SVB Financial Group or Silicon Valley Bank, you may unsubscribe. Read about our Privacy Policy. If you have any questions or concerns about our privacy policies, please contact us by email privacyoffice@svb.com.
© 2023 SVB Financial Group. All rights reserved. SVB Financial Group (SVB) is the holding company for all business units and groups. SVB, SVB FINANCIAL GROUP, SILICON VALLEY BANK, SVB SECURITIES, SVB PRIVATE, SVB CAPITAL and the chevron device are trademarks of SVB Financial Group, used under license. Silicon Valley Bank is a member of the FDIC and the Federal Reserve System. Silicon Valley Bank is the California bank subsidiary of SVB Financial Group (Nasdaq: SIVB).