According to GlobalData’s latest report on the US startup landscape, the realm of venture capital (VC) deals experienced a notable downturn in 2023, registering a decline of 42 percent in deal volume and a 44.1 percent dip in deals’ total value compared to the previous year.
From January to November 2023, a total of 6,307 VC deals were inked in the US, amassing a combined value of $104.5 billion. This significant drop contrasts starkly with the figures from the corresponding period in 2022, where 10,881 deals were announced, amounting to a more substantial $187.1 billion in funding.
Lead Analyst at GlobalData, Aurojyoti Bose, highlighted the unprecedented setback in VC funding activity. “The US took 11 months to hit the $100 billion mark in total deal value in 2023, in stark contrast to the swift attainment of the same milestone within five months in 2022. Despite this decline, the US retained its dominant position in both deal volume and value on the global VC funding landscape throughout 2023.”
Despite the decrease in VC funding, the US still accounted for a significant portion of VC deals. During January to November 2023, it comprised 34.2 percent of the total number of VC funding deals worldwide. Impressively, its share of the overall deal value was notably higher, standing at 47.2 percent. This divergence suggests that even amidst a cautious investor climate, select startups in the US managed to secure substantial investments.
Several notable funding deals marked the VC landscape in the US during the stated period. Stripe secured $6.5 billion, Inflection AI raised $1.3 billion, Metropolis Technologies secured $1.1 billion, while both Redwood Materials and Stack AV each raised $1 billion in funding.
The decline in VC deals and funding value indicates a shifting landscape in the US startup ecosystem, reflecting both investor prudence and the adaptability of select companies in securing substantial investments despite the challenging market environment.