In 2023, the VC industry declined globally. Around the world, investors put $345.7 billion into startups, down 35% than in 2022. Globally, venture deals totaled $76.6 billion in the quarter, down from $94 billion a year earlier.
This is stated in the Pitchbook report on the global state of the VC industry in 2023. AIN.Capital shares key points of the report.
Global state of venture capital industry
- VC industry declined globally last year. Around the world, investors put $345.7 billion into startups, down 35% from what they spent last year and the lowest outlay since 2017. Mostly, investors put money into artificial intelligence startups.
- Fundraising for VCs also fell last year. Money raised by US venture investors declined by almost half globally, and globally funds raised $160.9 billion.
- The decline for the fourth quarter was less than for the whole year, reflecting trouble that started in late 2022. Globally, venture deals totaled $76.6 billion in the quarter, down from $94 billion a year earlier.
The US VC activity and its indicators compared to 2022
- The value of venture capital deals in the US last year fell to the level of 2019. According to a recent report by research firm Pitchbook, venture capitalists invested $170.6 billion in the US in 2023, over an estimated roughly 15,000 deals.
- US venture funds raised in 2023 $66.9 billion, declined by almost two-thirds from 2022. For the fourth quarter, US venture deals totaled $37.5 billion, down slightly from $39.8 billion a year earlier.
- However, while deal value fell to $4 billion in Latin America, more than half from the previous year, VC fundraising rose by more than 40% to reach $2 billion.
The Pitchbook report was recently criticized because Ukraine and several other European countries were omitted there. In addition, Pitchbook decided to highlight the terrorist state of Russia in this rating.
To the request why Ukraine was not included, Pitchbook answered that its map shared omits countries that saw fewer than 10 deals or less than €20 million invested between 2022 and 2023. However, according to DealBook, $218 million in VC and PE tech deal volume in Ukraine was only in 2022.
