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Today: May 13, 2024
January 4, 2024
1 min read

Tech startup funding hits 4-year low, innovation needs your flow.

TLDR:

– Venture investments in tech startups hit a 4-year low in 2023.
– Investors focused on artificial intelligence (AI) firms, while other tech companies struggled.

Venture capitalists (VCs) invested $170.6 billion in the US in 2023 across 15,000 deals, a value that is roughly 30% lower than the previous year. This global trend was reflected worldwide, with investors pumping $345.7 billion into startups, a 35% drop from 2022 and the lowest level since 2017. According to Kyle Stanford, venture capital analyst at PitchBook, there are now around 54,000 US companies with venture backing, which he believes is “too many.”

Fundraising for VCs also dropped last year, down about two-thirds year over year in the US and by nearly half worldwide. American venture funds raised $66.9 billion in 2023, while globally funds took in $160.9 billion. This decline in funding has resulted in more startups laying off workers and even closing their doors. Approximately 3,200 venture-backed firms in the US went out of business in 2023, raising $27.2 billion.

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