US startup funding fall by 51%

The U.S. year-on-year (YoY) value of venture capital (VC) deals decreased by 51 percent in the first quarter of 2023, impacted by the current economic turmoil, GlobalData reported on Wednesday.

The total VC funding deals in the U.S. reached 2,577 from January to April, with a value of $45.6 billion, while the VC deals volume fell by 44.3 percent YoY.

“Economic uncertainties, followed by increased interest rates and market volatility have been making VC investors adopt a conservative approach, and a subdued VC funding activity across most of the key markets and the US is not an exception,” said Aurojyoti Bose, Lead Analyst at GlobalData.

Despite the declining numbers, the U.S. VC has topped the global VC funding and accounted for 36.9 percent of the total number of VC deals globally, and 53.6 percent of deal value.