Hope it happens It became easier for startups to raise capital in 2023, but it was not met by the end of the year.
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New data from business database Pitch book It paints a fairly bleak picture for venture capital investment activity in the fourth quarter of 2023. According to PitchBook’s preliminary tally, U.S. startups raised 2,879 rounds worth about $37.5 billion in the fourth quarter — the lowest quarterly deal value since the third quarter of 2019, and the lowest number of deals since the fourth quarter of 2017.
Across the stages, venture capital investment activity in the US is declining, and this is going beyond the overall numbers – for example, we saw less total capital invested in US startups last year than in 2020.
However, there is an interesting wrinkle in the data: we have seen a decline in the number of seed deals, in line with the trend in the rest of the market, but younger startups seem to be doing better overall than everyone else. Watching:
- There was a decline in average deal value between 2022 and 2023 for all fundraising campaigns for Series A startups onward, but 2023’s average deal value at seed stage matched the record $3 million set in 2022. middle The value of US seed deals rose to $1.3 million last year, which is what we last saw in 2006).