US Venture Capital Investments Decline by Over 45% YoY to $89.3B in Q1-Q3 2023 – Report

The US startup ecosystem witnessed a considerable decline in venture capital (VC) funding activity “during the first three quarters (Q1-Q3) of 2023.”

A total of 5,448 VC funding deals “with disclosed value worth of $89.3 billion were announced in the US during the period.” This represents a year-on-year (YoY) “decline of 40.3% in terms of VC funding deals volume while the corresponding disclosed investment value witnessed a fall of 45.6%,” according to GlobalData, a data and analytics company.

An analysis of GlobalData’s Financial Deals Database reveals that “a total of 9,132 VC funding deals were announced in the US during Q1-Q3 2022 while the corresponding disclosed value of these deals stood at $164.3 billion.”

Aurojyoti Bose, Lead Analyst at GlobalData, comments:

“VC funding activity suffered significant setback across most of the markets globally, including the US, as macroeconomic challenges, ongoing conflicts, and uncertain market sentiments have taken a toll on investor sentiment. However, despite the subdued sentiment, the US continued to remain investors’ favorite and accounted for the highest share of deal volume as well as value during Q1-Q3 2023.”

The US accounted “for 35.6% share of the total number of VC funding deals announced globally during Q1-Q3 2023, while its share of the corresponding deal value stood at 48.8%.”

Some of the notable VC funding deals “announced in the US during Q1-Q3 2023 include $6.5 billion raised by Stripe, $1.3 billion secured by Inflection AI, $1 billion worth funding raised by Redwood Materials, and $1 billion worth funding raised by Stack AV, among others.”

As covered, 4,000 of the world’s largest companies, “including over 70% of FTSE 100 and 60% of Fortune 100 companies, make timelier and better business decisions thanks to GlobalData’s unique data, expert analysis and innovative solutions, all in one platform.”

GlobalData’s mission is to help clients “decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology and professional services sectors.”

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