The value of venture capital fund deals in the United States fell to the lowest level since 2019 last year. Venture capital-focused investors in the U.S. invested $170.6 billion across roughly 15,000 deals.
A successful year for AI
Over the past 12 months, investors have put money into artificial intelligence (AI) start-ups. But the rest of the sector has not fared well. Venture capital investment also fell globally last year. Worldwide, investors put $345.7 billion into start-ups, down 37 percent from the previous year. It’s also the lowest since 2017.
Venture capital is an influential part of the global entrepreneurial ecosystem. The interest of these investors has helped a number of transformative companies, including Amazon, Google, and OpenAI.
Trying to strike a balance
However, investor spending in venture-backed companies has fallen sharply since the pandemic boom of 2021. “Everything is trying to find a balance,” said PitchBook analyst Kyle Stanford. Venture capital money is typically invested in companies that have a distinct chance of making it big. But there are currently about 54,000 venture capital-backed companies in the U.S., which Stanford said is too many.
The amount of funding that venture capitalists have raised from outside sources has also declined. In the US, venture capital funds have raised $66.9 billion, almost two-thirds less than in 2022. Globally, the amount has almost halved to $160.9 billion.
Source Czech Press Office
