A total of 1,076 venture capital (VC) funding deals were announced in the US during the first two months of 2023 while the disclosed funding value of these deals stood at $13.4 billion, according to GlobalData, a leading data and analytics company.
VC funding activity suffered a setback in 2023 in terms of volume and value but the impact was more prominent in value terms. An analysis of GlobalData’s Financial Deals Database reveals that this represents a 52.1% decline in VC deals volume compared to the same period during the previous year while the decline in terms of value stood much higher at 72.3%.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “The appetite for big-ticket deals seems to have waned as VC investors have become cautious. Resultantly, the average size of the VC deals has fallen significantly in 2023 in the US.”
The average size of the VC deals announced in the US during January and February 2023 stood at $12.4 million while the average size of the VC deals announced during the same period in 2022 was $21.5 million.
Bose adds: “However, the decline failed to affect the US dominance on the global VC funding landscape, and it still continued to register the highest share of global VC deals volume and value as the declining trend was experienced across most of the other markets.”
The US accounted for 36% share of the number of VC deals announced globally during January and February 2023 while the country’s share of value stood at 42.6%.
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