Global venture capital (VC) investments cratered in March 2023 by 44.3% to $29.15 billion from $52.32 billion in the same month a year earlier. This is just another report that indicates a sinking economy and the lack of risk capital supporting early-stage firms.
S&P Global Market Intelligence, who distributed the report, added that the number of funding rounds was cut by more than half as VC money saw a 54.3% decline dropping to 1085 funding rounds from 2374 rounds in March of 2022.
The largest funding round in March was for Yangtze Memory Technologies Co. Ltd., a Chinese flash memory and storage device manufacturer which raised money at a transaction value of $7.09 billion. This was followed by Fintech Stripe, which raised at a transaction value of $6.5 billion.
Technology, media, and telecommunications captured almost half of the VC investments at 48% – followed by financial services at 26.3%.
With central banks marching forward with more rate increases – private sector funding will not improve any time soon. It almost seems that central bankers want the wheels to fall off the entire global economy before they decide to pause.