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Laxman Pai, Opalesque Asia: With a total of 4,617 venture capital (VC) funding deals announced in the US during January-July 2023 (which was a decline of 37.4% over 7,379 VC deals announced during the same period in 2022) the VC funding activity in the US witnessed a considerable year-on-year (YoY) decline during the period, said a study.
According to a report by GlobalData, the disclosed funding value for these VC deals declined more significantly by 50.6% from $141.2 billion in January to July 2022 to $69.8 billion during January to July 2023.
Some of the notable VC funding deals announced during January-July 2023 include $6.5 billion raised by Stripe, $1.3 billion secured by Inflection AI, $500 million by Rippling, $500 million raised by Sandbox AQ, $450 million secured by Anthropic, and $400 million raised by Lvrch Capital Advisory.
The US accounted for 36.8% of the total number of VC funding deals announced globally during January-July 2023. Meanwhile, its share of the corresponding disclosed funding value stood at 49.4%.
"Increased interest rates, rising inflation, and ongoing geopolitical tensions weighed heavily on the US startup ecosystem. The drastic decline in deal value indicates the cautious nature of investors towards committing big-ticket investments," said Aurojyoti Bose, Lead Analyst at GlobalData.
"The cautious investor approach is now a global phenomenon and resultantly despite the decline, the US continued to dominate the global VC ...................... To view our full article Click here
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