Good Morning Cut Through Angels PTY LTD,
Welcome to the Q3 edition of Cut Through Quarterly. A big thanks to HSBC, Corrs, Vanta and GXE for their continued support.
As always, we're grateful to the 135 investors who completed our Investor Sentiment Survey. This month, we welcomed Phil Morle from
Main Sequence for a guest contribution covering the Australian opportunity in Deep Tech, as well as two very different perspectives on exits from David Moss from SecondQuarter Ventures and Blake Hutchison from Flippa. Thank you for your contributions.
Total funding dropped sharply in Q3 compared to last quarter, reaching a multi-quarter low of $695M, though deal announcements rose, with particularly strong investor activity in early stage rounds. The decline in funding was due to a lack of large deals, with no transactions over $100M and a multi-year low for those above $50M.
Investor sentiment improved, with 49% seeing the market as more favourable, 53% reviewing more deals, and 58% rating deal quality as good or excellent. However, reporting on portfolio health worsened, as layoffs and startup closures were reported to increase compared to Q2.
Enterprise/Business Software and AI/Big Data held their top spots as investors' "most exciting segments." Fintech led the funding table again, driving four of the ten deals exceeding $20M.
We hope you find the report useful. You can read the report here, or here.
Thanks,
The Cut Through Team
