Funding for mum and infant care businesses falls by 80% in 2022; there are no new unicorns

Seed-stage funding decreased by 21% in Q1 2023 compared to Q1 2022 but increased by 444% from Q4 2022.  Early-stage investments increased by 158% in the first quarter of 2023 compared to the fourth quarter of 2022, but decreased by 64% from the first quarter of 2022, according to the research.

According to research, the total capital raised by mum and infant care startups and businesses fell by 80% to $418 million in 2022 from $2.1 billion in 2021. According to Tracxn, a prominent international SaaS-based market intelligence platform, Mom & Baby Care companies in the US have raised $5 billion to date, while those in China and India have raised $2.8 billion and $1.4 billion, respectively.

The lack of late-stage investments is mostly to blame for the decrease in funding.

Seed-stage funding decreased by 21% in Q1 2023 compared to Q1 2022 but increased by 444% from Q4 2022.

Early-stage investments increased by 158% in the first quarter of 2023 compared to the fourth quarter of 2022, but decreased by 64% from the first quarter of 2022, according to the research.

Compared to $3.86 million in Q4 2022 and $26.5 million in Q1 2022, the industry attracted investments totaling $21 million in Q1 2023.

“There is little to no movement in the industry in terms of unicorns and IPOs. There haven’t been any new unicorn companies founded in this sector between 2022 and 2023, according to the research.

No initial public offerings (IPOs) have occurred in 2023 to date, compared to one in 2022 and two in 2021. Gamified learning systems for Pre-K students have received the most financing in this market over the past two years, followed by online retailers and breast pumps.

The most active investors in this field to date are 500 Global, Techstars, and New Enterprise Associates.

The top seed-stage investors in the past two years have been IPV, Angel List, and Techstars; the top early-stage investors are Innoven Capital, Andreessen Horowitz, and Sequoia Capital; and the top late-stage investors are Sequoia Capital, General Atlantic, and IPGL.

The epidemic spurred the Mom & Baby Care industry’s expansion, spurring innovation in this market. According to the Tracxn research, the growth of the working class population, which has more discretionary income, is another element driving this industry’s expansion.