TLDR:
- Global venture capital funding fell 15% quarter over quarter at the end of 2023.
- Despite the overall decline, there was modest growth in Europe and AI investments remained strong.
Article Summary:
Global venture capital funding experienced a 15% decline quarter over quarter at the end of 2023, reaching its lowest level since early 2020. The US and China saw decreased investments due to ongoing economic uncertainty. However, there were some bright spots, with Europe seeing a modest 7% growth in funding, particularly in the artificial intelligence (AI) and fintech sectors. The US secured a significant portion of global venture funding, driven by substantial generative AI funding rounds. Seed-stage deals emerged as the most robust funding stage, experiencing a 17% growth, while early- and late-stage deals saw a decrease in size.
Corporate venture capital (CVC) activity accounted for 20% of all funding in 2023, with an increase in funding rounds and investors in the fourth quarter, mostly due to strong participation in AI-focused investments. Despite the overall decline in funding, generative AI start-ups continued to attract investments, showcasing their resilience and transformative potential. Investments in foundational technologies like large language models (LLMs) surged in 2023 and are expected to continue growing.
