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.”

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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).


About GlobalData

4,000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make timelier and better business decisions thanks to GlobalData’s unique data, expert analysis and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology and professional services sectors.

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