Investorideas.com

Call 800 665 0411 to learn about our services for your stock

Search   Follow Investorideas on Twitter   Investorideas is on Facebook   Investorideas is on Youtube   Investorideas is on Pinterest  Investorideas is on stocktwits   Investorideas is on tumblr   Investorideas is on LinkedIn   Investorideas Instagram   Investorideas Telegram   Investorideas Gettr   Investorideas RSS




Share on StockTwits

Global VC deal activity takes hit in Q1 2023, decline more prominent in high-value deals, finds GlobalData

 

May 3, 2023 (Investorideas.com Newswire) Global venture capital (VC) deal activity took a year-on-year (YoY) hit in the first quarter (Q1) 2023 and deal volume across most of the funding sizes experienced decline but the impact was more prominent for high-value transactions. This indicates a potential shift in the VC landscape, as investors become more cautious and selective with their investments, reveals GlobalData, a leading data and analytics company.

An analysis of GlobalData's Financial Deals Database reveals that a total of 4,143 VC funding deals with disclosed funding value were announced globally in Q1 2023, which is a decline of 42.1% compared to the 7,158 announced deals during Q1 2022.

The number of low-value VC deals* announced globally witnessed a decline of 36.9% from 4,685 in Q1 2022 to 2,954 in Q1 2023. Meanwhile, the number of VC deals valued more than $100 million decreased by a massive 75.1% from 321 in Q1 2022 to 80 in Q1 2023.

Aurojyoti Bose, Lead Analyst at GlobalData, comments: "High-value transactions were impacted as VC investors remained cautious for committing big investments over the prevailing geopolitical conditions, macroeconomic challenges and recession fears."


Despite the decline, low value deals continued to dominate the VC funding landscape by registering the highest number of VC deals announced in this range globally during Q1 2023. The share of low value deals as a percentage of the total VC deals volume with disclosed funding value stood at 71.3% in Q1 2023.

Meanwhile, VC deals valued more than $1 billion, which were non-existent in Q1 2022, made a comeback in Q1 2023. Q1 2023 saw the announcement of two VC deals valued more than $1 billion.

Bose concludes: "Although the number of big-ticket deals is not too high, their comeback during the quarter despite the challenging market conditions is a reason to cheer for promising startups. It indicates that investors are still willing to place big bets in promising startups despite the overall decline in deal activity."

*Investment less than or equal to $10 million

For more information

To gain access to our latest press releases: GlobalData Media Centre

Analysts available for comment. Please contact the GlobalData Press Office:

EMEA & Americas: +44 (0)207 832 4399
Asia-Pacific: +91 40 6616 6809
Email: pr@globaldata.com

Notes to Editors

  • Quotes are provided by Aurojyoti Bose, Lead Analyst at GlobalData
  • The information is based on GlobalData’s Financial Deals Database
  • This press release was written using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis conducted by GlobalData’s team of industry experts.

About GlobalData

4,000 of the world's largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely 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.

More Info:


Investorideas.com Newswire

This news is published on the Investorideas.com Newswire - a global digital news source for investors and business leaders


Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.

More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/

Global investors must adhere to regulations of each country. Please read Investorideas.com privacy policy: https://www.investorideas.com/About/Private_Policy.asp


That's all it takes to get an article published on Investor Ideas - Learn More