2023 Tech Industry Predictions: ML, Web3, Private Equity, and Fundraising Market Reset
Tomasz Tunguz predicts 2023 will be a 'year of sobriety' marked by machine learning integration into SaaS, continued web3 consolidation, significant private equity M&A activity, and a reset in venture fundraising valuations. The predictions reflect a transition from the exuberant 2021 market and chaotic 2022 toward more disciplined growth metrics and lower entry/exit valuations across funding stages.
Metrics in this report
150k+
founders and operators
newsletter subscribers
5.8x
baseline at time of writing
public software companies
5.0%
at
end of 2023 prediction
30%
predicted 2023
mid-stage funding rounds
5%
less than
first half of 2022
7.0x
predicted end of 2023
public software companies
2.5%
below
end of 2023 prediction
10%
of total
70+ publicly traded software companies
10-15$m
range
early stage 2023 fundraising
50-60$m
range
companies with ~$500k ARR
100m
more than
2022 market assessment