US maintains strong appeal for VC investors despite 47.4% YoY decline to $79.6 billion in January-August 2023, finds GlobalData

The US witnessed 5,023 venture capital (VC) funding deals, with a total disclosed funding value of $79.6 billion during the first eight months of 2023. Despite a year-on-year (YoY) decline of 38.3% in deal volume and 47.4% in funding value, the country retained its status as a top destination for VC investments, reveals GlobalData, a leading data and analytics company.

An analysis of GlobalData’s Financial Deals Database reveals that 8,136 VC deals were announced in the US during January-August 2022 while the disclosed funding value of these deals was $151.2 billion.

Aurojyoti Bose, Lead Analyst at GlobalData, comments: “While the US continues to lead the global market in VC funding, it is not impervious to worldwide market fluctuations. Similar to its counterparts, the US experienced a decline in investor confidence, leading VC firms to adopt a more cautious stance when making significant investments.”

The US accounted for 36.3% of the total number of VC deals announced globally during January-August 2023. Meanwhile, it’s share of the total disclosed funding value stood at 49.8%.

Some of the notable VC funding deals announced in the US during January-August 2023 include $6.5 billion raised by Stripe, $1.3 billion secured by Inflection AI and $1 billion worth funding raised by Redwood Materials.

Bose concludes: “Despite the decrease in funding value and volume, the US retains its allure for VC investors, with ample capital available for promising startups. Furthermore, the announcement of several billion-dollar deals involving US-based startups, even in challenging market conditions, underscores the country’s enduring appeal as a testament to its attractiveness.”

(Note: Historic data may change in case some deals get added to previous months because of a delay in disclosure of information in the public domain).

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