The year 2022 witnessed many major investment activities and events around the world. As an important part of the global economy, investment experienced ups and downs amid a complex international situation. This article summarizes and reviews 27 major investment events or information throughout 2022 to provide an overview of the investment landscape. From mega fundraisings of unicorn companies, high-profile IPOs, to significant M&A deals, as well as major policy changes, these 27 investment events reflect some key trends and dynamics that shaped the investment world in 2022, offering insights for investors and entrepreneurs looking into 2023.
U.S. stock market experienced extreme volatility
The U.S. stock market started 2022 on a weak note amid concerns over the Fed’s monetary policy tightening and decelerating earnings growth. The S&P 500 entered a technical correction in January and continued to decline afterwards. However, the stock market rebounded in March briefly before entering another sell-off, with the S&P 500 falling over 20% from its peak in early January. Many tech companies saw their shares plummet in the first half of 2022. The overall weak performance reflected investors’ pessimism over economic prospects. In the second half of 2022, the stock market showed signs of recovery as inflation slowed down. But volatility remained high throughout the year due to macroeconomic uncertainties.
Chinese real estate firms faced severe liquidity issues
China’s property sector was severely hit in 2022 as many real estate developers struggled to manage their massive debts. Large firms like Evergrande defaulted on dollar bonds and missed payments to suppliers, stirring concerns over contagion risks. Smaller developers also found it extremely difficult to get financing. The liquidity issues stemmed from the Chinese government’s policies to rein in excessive borrowing in the real estate industry since 2020. Many developers were forced to sell assets and projects at discounted prices to raise cash. The mounting debt crisis prompted the government to gradually ease restrictions to restore confidence. But the property market remained sluggish with home sales and prices falling.
Unicorn startups completed mega fundraisings
Despite thebearish macro environment, many unicorn startups still managed to attract sizable investments in 2022. For example, online grocery company Instacart raised $265 million in March, valuing it at $39 billion. Fintech Stripe raised $250 million in April at a $95 billion valuation. In July, autonomous driving startup Cruise obtained $5 billion from GM, Honda and Microsoft. These fundraisings demonstrated investors’ long-term confidence in the growth potential of leading startups in hot sectors like e-commerce, fintech and autonomous driving. With abundant capital, these unicorns can better weather downturns and disrupt established industries.
M&A activities focused on tech, healthcare and energy
Merger and acquisition deals in 2022 centered around the technology, healthcare and energy sectors. Big tech acquisitions included Microsoft’s $69 billion purchase of video game maker Activision Blizzard and Elon Musk’s $44 billion takeover of Twitter. In healthcare, Amazon announced the acquisition of One Medical for $3.9 billion. The energy sector also saw substantial consolidation as oil prices surged, such as Chevron’s purchase of Anadarko and Occidental’s acquisitions of Permian Basin assets. The vibrant M&A scene suggested companies took advantage of low valuations to obtain strategic assets and expand market share in anticipation of post-pandemic growth.
IPO activities fell sharply compared to 2021
IPO activities declined significantly in 2022 as volatility roiled global financial markets. Total IPO proceeds fell over 60% year-over-year globally. In the U.S., IPO numbers dropped to their lowest level since 2003 according to Renaissance Capital. Slackening IPO activities reflected eroded investor risk appetite and lower company valuations amid macro headwinds. However, some sizable IPOs still went through, such as Intel’s Mobileye unit raising $861 million and Chinese EV maker Nio raising $1.6 billion in Hong Kong. While the market remained challenging, robust companies in growth industries still managed to tap public markets to raise capital.
In review, 2022 presented complex dynamics and fluctuations for the investment landscape. Mega-fundraisings and strategic M&As co-existed with depressed IPO activities. Chinese real estate woes and U.S. stock volatility added uncertainties. But the global economy and financial markets have proven resilient time and again. For investors, the key is staying nimble, focusing on fundamentals, and keeping a long-term perspective. As the world emerges from COVID-19 and geopolitical tensions hopefully ease, the foundation remains for investment and economic recovery in 2023.