During the first three quarters of 2023, the U.S. startup ecosystem experienced a significant drop in venture capital (VC) funding. 5,448 VC deals amounting to $89.3 billion were announced in this timeframe, a 40.3% decrease in deal volume and a 45.6% drop in investment value from the previous year, as reported by GlobalData, a prominent data analytics firm.
Comparatively, in Q1-Q3 of 2022, there were 9,132 VC deals in the U.S., with a combined value of $164.3B, as shown in GlobalData’s Financial Deals Database.
Analysts at GlobalData stated that global VC funding, including the U.S., was impacted by factors like macroeconomic challenges, ongoing conflicts, and uncertain market sentiments, which affected investor enthusiasm. Nonetheless, the U.S. remained the top choice for investors, dominating both deal volume and value during the mentioned period.
The U.S. accounted for a 35.6% share of the total number of VC funding deals announced globally during Q1-Q3 2023, while its share of the corresponding deal value stood at 48.8%.
Highlight VC deals in the U.S. during this period featured Stripe raising $6.5B, Inflection AI securing $1.3B, and both Redwood Materials and Stack AV each gathering funds of $1B.