TLDR:
- Global venture funding declined by 38% in 2023, reaching a six-year low of $248.4 billion.
- India only added two new unicorns in 2023, compared to 22 in 2022.
Venture capital (VC) funding in startups experienced a significant decline in 2023, with global funding dropping by 38% to reach $248.4 billion, the lowest level since 2017. India was particularly affected, adding only two new unicorns compared to 22 in the previous year. Deal volume also decreased by 30% to 29,303, impacting various sectors and regions. The US was hit hardest by the decline, with deal volume shrinking by 21% in Q4 2023. Investors have become more cautious with their funding and are focusing on early-stage companies, with early-stage deals accounting for 65% of US activity in 2023.
Key Highlights:
- Global venture funding fell to a six-year low of $248.4 billion in 2023, marking a 38% decline from the previous year.
- India added only two new unicorns in 2023, compared to 22 in 2022.
- Deal volume dropped by 30% to 29,303, impacting most major sectors and regions.
- The US experienced a 21% decrease in deal volume in Q4 2023, reaching a 10-year low.
- Investors are becoming more cautious with their funding and are focusing on early-stage companies, with early-stage deals accounting for 65% of US activity.
Overall, the decline in global venture funding in 2023 has had a significant impact on startup funding, particularly in India. This decrease could indicate a potential slowdown in the startup ecosystem and may require startups to explore alternative funding sources or strategies. It is important for startups to stay agile and innovative during these challenging times to attract investment and thrive in the evolving market.
