Luma - Full Year Market Report 2022

The year 2022 was marked by various headwinds such as the US Federal Reserve's efforts to control inflation, supply chain disruptions, Covid-19 lockdowns, labor shortage, and the collapse of the cryptocurrency market, leading to a decline in all economic activity. M&A activity suffered from declining public market valuations and reduced buyer confidence, resulting in a drop in deal activity. The Ad Tech subcategory was particularly affected, while MarTech and Digital Content showed some resilience. M&A activity is expected to recover in 2023 as valuations align between buyers and sellers. In the public markets, there were no new entrants in the LUMA indices and both indices lost a company due to acquisitions, leading to a substantial decline in public valuations for technology stocks. The private capital markets also tightened for growth-stage companies, with venture funding declining quarter-over-quarter since the peak in Q4 2021.