📊 EV’s Charts of the Week #82
Hi, I’m Azeem Azhar. I convene Exponential View to help us understand how our societies and political economy will change under the force of rapidly accelerating technologies. Every Wednesday, I do this through Charts of the Week.
📖 The paperback version of my book comes out on July 14! You can pre-order it here – when you do, send us the receipt to email@example.com to get my take on the Exponential Age in 12 charts.
💬 To celebrate the release of the paperback, I’m hosting a mid-year briefing for members of Exponential View, where I’ll synthesise everything I’ve learnt in hundreds of conversations with politicians, investors, execs, and founders about the world in 2022. Join me and other members on Aug 10 at 9am UK / 6pm Sydney or at 3pm UK / 10am NYC. The recording will be available to all paying members for a month following the event.
GLOBAL VENTURE WOBBLE
As a backdrop to the market downturn, the last two quarters have seen a strong reduction in American Venture Capital, but European funding is holding up. Globally, tech venture capital was reported to have dropped 27% in the second quarter of 2022.
Although in other regions, venture capital continues to grow strongly. For example, in Africa, 2022 venture funding appears on track to quadruple 2020’s level. And in China, Sequoia Capital raised its largest-ever China fund $9bn in a fundraising that was oversubscribed with about $12bn of capital chasing it.
ARE SHORTAGES OVER?
Supply chains are normalising
Global supply chains have faced a stark crisis throughout 2020-2021. Technologies such as microchips are extremely vulnerable to shocks, in part because of the sheer complexity of their supply chains. Thankfully, manufacturing supply chains seem to be getting back on track.
And inventories are growing…
Inventories are growing this year, a sign that supply chains are in better shape and that industries are rethinking their manufacturing processes and risk management. This might result in a glut of core materials, semiconductors and other manufactures. In turn, we might see a collapse of prices in the next year or two. Semiconductor watchers will be familiar with the cycle of shortages and over-supply. I still remember the memory glut of 1996 fondly. (Recommend you read the story on start-up founders at the foot of that page too.)