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Laxman Pai, Opalesque Asia: VC investment in the Americas was $33.1 billion across 2,542 deals in Q1'23, a decline from $44 billion across 4,050 deals in Q4'22, said a study. The $33.1 billion raised in the Americas was the lowest level since Q1'18.
According to Venture Pulse - a quarterly report published by KPMG Private Enterprise, VC investment in the US remained very subdued for the third consecutive quarter, falling from $40 billion in Q4'22.
"The decline was driven by a number of factors, including the protracted geopolitical uncertainty globally, the continued rise in interest rates, the ripples caused by crypto sector challenges in 2022, ongoing concerns about tech sector valuations, and the recent turbulence experienced by the global banking system," it said.
Given the significant amount of uncertainty in the market both in the US and globally, it was no surprise that US-based VC investors continued to pull back from making large deals in Q1'23.
While the decline in VC investment was relatively modest quarter-over-quarter, the level of VC investment in the US was less than 50% of the total amount invested during the same quarter in 2022. The decline in the total number of VC deals was even more pronounced-from a peak of 5196 deals in Q1'22 to a low of 2217 in Q1'23.
Alternative energy and greentech attracted some of the largest rounds in Q1'23, including an $800 million raise by low carbon infrastructure company Generate Capital and a $525...................... To view our full article Click here
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