TLDR:
Global VC investment fell to its lowest level in nearly five years in Q1’24, with the Americas leading in funding. The total VC investment dropped from $83.8 billion in Q4’23 to $75.9 billion in Q1’24, marking the lowest level since Q2’19. China also saw two $1 billion+ megadeals during the quarter. Cleantech and AI were the exceptions to the downturn, accounting for eight of the top ten deals globally. The U.S. led in VC funding in the Americas, while Europe saw an increase in VC investment. Asia-Pacific experienced a seven-year low in VC investment, with India showing an uptick. The U.S. IPO market is closely watched heading into Q2’24.
Global VC Investment Falls To Lowest Level In Nearly Five Years: KPMG Report
Global venture capital (VC) investment fell slightly from $83.8 billion across 9,458 deals in Q4’23 to $75.9 billion across 7,520 deals in Q1’24 amid geopolitical tensions, extended drought in exits among VC-backed companies, and continued pullback in investment at later deal stages. The level of VC investment was the lowest since Q2’19, while the number of VC deals was the lowest since Q2’16. The Americas accounted for almost half of global VC funding in Q1’24 ($38.2 billion across 3,205 deals), with the U.S. leading with $36.6 billion across 2,882 deals. VC investment dropped in both the Americas and Asia but rose in Europe. Global exit activity also remained muted in Q1’24, falling to the lowest level since Q4’16.
