Global VC funding down 7% to $565.2B in 2023

After the venture capital boom during the COVID-19 pandemic in 2021, the global capital raising market started showing signs of weakness in 2022. The downturn continued last year with high inflation, rising interest rates, and the gloomy economic outlook spreading fear and making investors less likely to invest.

A Two-Year Decline:
According to data presented by Stocklytics.com, in 2023, they raised $565.2 billion, which is $40 billion or 7% less than compared to 2022. Furthermore, when compared to 2021, the downturn becomes more pronounced, with a staggering $118.4 billion decrease or a 17% drop over the two-year period.

Traditional vs. Digital Money:

Traditional ways of getting money, like venture capital (VC) services, saw a downturn. In 2021, companies got $618.2 billion from VC services, but in 2023, it dropped to under $500 billion. On the other hand, digital ways of raising money, like crowdfunding and marketplace lending, grew from $65.4 billion to $66.3 billion during this time.

Smaller Deals:

Companies used to get big amounts of money for each deal, with an average of over $14.7 million in 2021. But in 2023, this fell by almost 25% to $11.1 million per deal. This means companies had a harder time getting large amounts of money for their projects.

Regional Challenges:

The United States, having the biggest capital raising market globally, faced a big drop of 20%, getting $299.5 billion in 2023. China also had challenges, with a 12% drop from $148.6 billion to $133.2 billion during the same time.

The full story and statistics can be found here: https://stocklytics.com/content/companies-across-the-globe-raised-565-2b-in-2023-40b-less-than-a-year-before/