TLDR:
– Q4’23 global VC deals volume drops to level not seen since Q3’16
– VC investment in Americas remains steady at $40.1 billion in Q4’23
Global VC investment dropped to the lowest level since 2019 in 2023, reaching $344 billion across 37,808 deals. The Americas accounted for the largest share of VC investment at $183.6 billion, followed by the Asia-Pacific region at $92.4 billion and Europe at $62.3 billion. Q4’23 saw a significant decline in global VC investment, falling to $74.9 billion across 7,572 deals, the lowest levels since Q2’19 and Q3’16 respectively. Europe and the Asia-Pacific region experienced the sharpest declines in funding. Despite the overall decrease in VC activity, investment in artificial intelligence (AI) remained strong, with several billion-dollar funding rounds for AI-focused startups. The report also highlighted the decline in exit values for VC-backed companies, which stood at $1.5 trillion in 2021 but dropped to $225 billion in 2023. Looking ahead, the report suggests that Q1’24 will likely see subdued VC investment due to high interest rates and ongoing geopolitical conflicts, but AI will continue to be an attractive area for investment.
