Early-stage funding in media and telecommunication companies in the U.S. and Canada slowed down in the first half of 2022 after a strong finish in 2021.

The number of early-stage funding transactions in the sector involving private equity firms stood at seven in the quarter ended June 30, unchanged from the first quarter, according to S&P Global Market Intelligence data. However, the aggregate transaction value declined sequentially in the second quarter to $20.8 million from $30.5 million.

On a year-over-year basis, the aggregate transaction value of early-stage funding transactions in the sector dropped 43.2% in the second quarter from $36.6 million. Market Intelligence tallied 15 early-stage funding transactions in the second quarter of 2021.

* Review Afropolitan Group's funding overview. * See the details of VShojo seed funding round.

Although aggregate transaction value declined for the second quarter in a row, the sector's performance remained better than early-stage funding in the first three quarters of 2020.

Media and telecommunication startups raised $18.7 million from seed funding in the second quarter, down 42% year over year from $32.2 million.

Pre-seed funding amounted to $2.1 million, down 50% from $4.2 million in the second quarter of 2021. Afropolitan Group raised the amount through a funding round in June. The transaction included participation from existing investor Ingressive Capital Ltd., 25 angel investors and some new backers.

The sector has not received angel funding or crowdfunding since 2020. Accelerator funding also dried up in the second quarter.

VShojo Inc. raised the highest amount of early-stage funding in the first half of 2022. The livestreaming company raised $11.0 million from the sale of common shares in a seed funding round with 12 investors led by Anthos Capital LP.

Deductive Dreamers Inc. ranked second in early-stage funding with $8.5 million, while Just Women's Sports Inc. and Mad Realities each raised $6.0 million.