The global venture capital (VC) funding faced a substantial setback in 2023, and the US was no exception to this trend.
The impact on investor sentiments is evident, considering that the total VC funding deal value for the US took a prolonged 11 months to reach the $100 billion mark during the year.
This stands in stark contrast to the swift achievement of the same level in just five months during 2022, according to GlobalData.
A total of 6,596 VC funding deals with disclosed funding value of $109.4 billion were announced in the US during 2023. This represents a decline of 43.5% in terms of VC deal volume and 45.6% in terms of deal value compared to 2022.
An analysis of GlobalData’s Deals Database reveals that a total of 11,673 VC funding deals with disclosed funding value of $201.2 billion were announced in the US during 2022.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “Several factors were at play in taking a hit on investor sentiments. Notable among them are macroeconomic challenges, inflation, interest hikes, ongoing conflict and geopolitical tensions. However, the subdued VC funding activity remained a global phenomenon in 2023 with most of the key markets feeling the brunt during the year.”
Nevertheless, the US continued to be the major driving force for global VC funding activity. Despite the setback, the US stood as the top investment destination for VC firms and maintained its dominance in terms of both deal volume and value throughout 2023.
The US accounted for 33.8% of the total number of VC funding deals announced globally during 2023 while its share of the corresponding deal value stood at 46.7%.
Some of the notable VC funding deals announced in the US during 2023 include: $6.5 billion worth of funding raised by Stripe, $1.3 billion secured by Inflection AI, $1.1 billion worth funding raised by Metropolis Technologies, $1 billion worth funding raised by Redwood Materials and $1 billion worth funding secured by Stack AV.