TLDR:
- Q1 2024 saw VC dealmaking slide to a 7-year low.
- Fintech sector funding fell 16% QoQ.
In the first quarter of 2024, VC dealmaking reached a 7-year low, according to an update from CBInsights. While equity deal volume continued to decline, there was a modest rebound in funding due to several billion-dollar rounds, particularly in generative AI. The report highlighted some key takeaways:
- Venture funding climbed 11% QoQ to $58.4 billion.
- Deal volume decreased for an eighth straight quarter, down 7%.
- Asia and Europe experienced declines in VC deal activity, while the US saw a slight increase.
- Mega-rounds worth $100 million or more grew by 30% QoQ.
- Corporate investors like Amazon, Disney, and Alibaba were behind some of the largest deals.
- Europe saw a 5-quarter high in new unicorn companies, while the fintech sector experienced a 16% decrease in funding.
- Silicon Valley dominated US funding, capturing 42% of the country’s funding in Q1 2024.
The report also noted that digital health and retail tech sectors saw gains in funding, while Silicon Valley startups continued to attract a significant portion of funding. Overall, despite the challenges faced by the fintech sector, the venture capital landscape showed some resilience in the face of economic fluctuations.
