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January 11, 2024
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Philly’s 2023 Q4 Funding: A True Reflection of Changing Tides


  • Philadelphia tech companies raised nearly $500 million in Q4 2023
  • While this is comparatively low, it reflects the slow decline of the venture capital market across the US
  • The top deals went to companies in the healthtech industry
  • VC professionals believe that 2024 will continue to see a decline in fundraising, but may start to turn around in the middle of the year

Philadelphia tech companies raised nearly $500 million in Q4 2023, according to the latest Venture Monitor report. This reflects a slow decline in the venture capital market across the US.

The Philadelphia region is currently the fifth most-active venture capital market in the United States, in terms of deal count. However, the region’s fundraising numbers for 2023 did not match the impressive totals of previous years. In 2023, companies in the Philadelphia region raised a total of about $2.43 billion, compared to record-breaking totals of $7 billion in 2021 and $5.23 billion in 2022.

Nationally, fundraising and exit activity were down in 2023. NVCA President and CEO Bobby Franklin stated that while the market has changed, it is not in crisis. The world looks very different than it did two years ago, and a new set of problems needs to be solved for.

In Q4 2023, the top deals in the Philadelphia region went to companies in the healthtech industry. These included precision oncology company Synnovation Therapeutics, which raised $69.9 million, and biotech companies Aro Biotherapeutics and Vivodyne, which raised $41.5 million and $38 million respectively.

VC professionals believe that the decline in fundraising will continue in 2024, but may start to turn around in the middle of the year if the economy begins to improve. However, some predict that 2024 will be a continuation of the slowdown seen in 2023 due to election-year uncertainty and a continued slowdown in capital markets.

Despite the challenges, the Philadelphia region remains resilient, with a strong business community, hard-working entrepreneurs, and proximity to major cities like New York and Washington, D.C. Companies and investors from outside the region continue to show interest in the Philadelphia tech ecosystem.

Overall, while Philadelphia’s fundraising totals were lower in 2023 compared to previous years, the region remains a significant player in the venture capital market and is well-positioned for potential growth in the future.

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