Were there discipline in venture capital investing during the hype cycle in 2021/2022?

I recently did a quick data analysis on Southeast Asia early stage venture capital investments in different firms over the past few years. The data (from Crunchbase) shows the ratio of investments made by each firm in a recent period of hype (March 2021 to March 2022) compared to their average number of investments over the previous 2-3 years. Let's dig into the data and see what insights we can gather. 

Overall, the data shows a fair bit of variation between firms in terms of how their recent investment levels compare to their historical averages. 

A few key observations: 

  • Most firms (15 out of 17) saw increases in their investment levels compared to historical averages. This indicates an overall uptick in VC activity among these firms during the hype period. However, the degree of increase varied quite a bit. 3 firms saw modest increases of 50% or less compared to their averages. There are 2 firms that saw massive increases of 200-500% above their typical investment cadences. 
  • There were 2 firms that saw decreases in investments in the 25-60% range compared to historical averages. So the pullback in investing among these firms depicted strong contrarian behavior compared with the surge in activity among the highest growing firms. 

Overall, these data reflect a VC market that saw accelerated growth in 2021 but with an uneven distribution - very few firms are pulling back showing investment discipline while others are rapidly expanding investments.