If there is any doubt, another report is highlighting the moribund venture capital markets. S&P Global Market Intelligence is reporting that VC funding rounds are at a four-year low, having cratered by 27% year over year in October at $18.49 billion and deal volume dropping by 23.8% to 1,234. The investment value and volume were the lowest October totals since at least 2020, according to the report.
If you look back at October 2021, the comparison is even more depressing, as almost $55 billion was raised during that month.
The value of funding rounds is on a depressing trajectory of a “steep annual decrease.”
Year to the end of October, total funding stood at $216.13 billion or about half of full-year 2022 at $435.19 billion.
The US and Canada reported the biggest rounds.
AI firm Metropolis Technologies raised the largest round globally. The company offers spot-tracking for garage space. It raised $1.70 billion in series C financing, which included $1.05 billion in series C preferred stock and $650 million in debt financing.
The technology, media, and telecom industry dominated global VC investments in October, attracting 40.4% of the total.
The big question is when will global VC markets turn the corner. As the US Federal Reserve is in a holding pattern and not inclined to raise rates soon – the hiking cycle may be over. This should help, but there are plenty of other reasons for risk capital to maintain its cautious approach.