Valuations cut in half, rising interest rates, and tech layoffs are just some of the themes that shaped the business and economic environment in 2022. Unlike 2021, investors across all sectors and industries were cautious investing their dry powder and companies faced this harsh reality head on. It’s safe to say 2022 was a difficult year for startups and high-growth companies.
But, as I’ve stated before, even in bad times, good businesses are fundable and private market investing continues to occur. In 2022, we saw a shift in the type of financing that companies were going after. Debt financing (rather than traditional VC/equity financing) became the more suitable option for raising capital to extend runway or avoid setting a lower valuation, but still access working capital for companies to grow their business. On our Intelligent Capital Market funding platform, we saw this first hand with an increase in companies raising debt and expect this trend to continue this year.
For Hum, 2022 was a year of focusing on continuing to improve our platform, increased collaboration amongst teams, and achieving our core company goals and KPIs we set out for ourselves each quarter.
After an exciting and eventful 2021 when we rebranded to Hum Capital, launched the Intelligent Capital Market, and raised our Series A, in 2022 we were determined to continue our mission of connecting great companies with the right capital. I am so proud of our team for the diligence they showed, hard working mentality, and pursuit of excellence for our companies and investors. All the work accomplished in 2022 on scaling our product, leveling up our brand look and feel, and improving our process for onboarding companies onto the ICM (just to name a few), are all critical to Hum’s continued success in this year.
As 2023 kicks-off, I’m excited to share our company stats and metrics from 2022 below!
Hum & the ICM by the numbers:
- $4B+ – Total amount of ICM Debt originations in 2022
- ~600 – # of ICM Debt originations in 2022
- 2.7x – Increase in total cumulative Term sheets signed in 2022 vs 2021
- 2.8x – Increase in total cumulative deals closed in 2022 vs 2021
- $22B+ – Total Assets Under Management (AUM) of active ICM debt investors
- 3.0x – Increase in # of unique investors issuing term sheets
- 400+ – Number of institutional investors on the ICM
- 20+ – The number of industries currently represented by companies connected to the ICM
- 48 – States with companies currently on the ICM
- ~50% – Of all companies currently on the ICM come from outside of Silicon Valley (California) and New York
- $19.5M – Average annual revenue of companies with ICM accounts
Additionally, one of our goals in 2022 was to create fundraising content for founders, CEOs, and CFOs that leverages lessons learned from our position of seeing private transactions happen every day. Hum’s mission not only includes connecting great companies with the right capital, but also making the capital raising process more transparent – and content and best practices that make private capital more accessible aligns with that goal.
These articles, eBooks, and guides are just the beginning – founders and CEOs stay tuned for a very exciting announcement coming soon on how we’ll connect companies with the latest fundraising resources! But, in the meantime, I would like to do a quick recap of some of the fundraising content we produced in 2022:
- Hum’s Max Debt Raise Calculator
- Fundraising 101: Hum Capital’s Guide to Raising Capital
- A Founder’s Guide to Calculating CAC and LTV the Right Way
- Raising Debt: Hum Capital’s Guide to Non-Dilutive Financing
- 8 Steps for Building a Financial Model to Calculate your Fundraising Needs
- The Right Questions to Ask Investors When Fundraising in a Down Market
Some of Hum’s NYC team at Hum’s east coast regional holiday party!
At Hum, our vision is to create a world where potential is unconstrained by capital. Today, access to capital relies too much on personal connections. Companies should be evaluated on their business performance and growth potential not on who they went to college with or where they are headquartered. Because of the work we put in and our team’s execution and attention to detail, I am confident we’ll only get closer to achieving our vision this year.
And speaking of this year – we have some very very exciting news and product announcements that we’re gearing up for so stay tuned!