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Laxman Pai, Opalesque Asia: Despite unfavorable market conditions due to ongoing geopolitical conflicts and tensions, and concerns about global trade and tariffs, global VC investment surged from $118.7 billion in Q4'24 to a ten-quarter high of $126.3 billion in Q1'25, revealed a study.
The overall increase in deal value was largely driven by a series of mega-rounds by AI companies, including a record-setting $40 billion raise by OpenAI, according to KPMG Private Enterprise's Venture Pulse.
Global corporate VC investment rose from $69.4 billion in Q4'24 to $80.8 billion in Q1'25; the US accounted for the majority of investment during the quarter ($65.5 billion), driven by large megadeals.
While VC funding rose considerably given the red-hot investment in AI, global deal volume continued to plummet, falling from 8,801 deals in Q4'24 to a record low of 7,551 deals in Q1'25. While many VC investors were optimistic heading into Q1'25, fresh uncertainties saw many pressing pause again on major deals outside of the AI space.
"We headed into Q1'25 with some cautious optimism around a renewed sense of business confidence, more investment, and more exit activity. That optimism has now abated in the face of the uncertainty caused by various US executive orders and the back and forth on tariffs and trade," said Conor Moore, Global Head of KPMG Private Enterprise, KPMG International.
"With expectations for the recovery of the IPO market moving ...................... To view our full article Click here
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