A brief synopsis of venture capital events during the second quarter of 2024.
This period saw a rather significant shift in stability in certain sectors across all global regions along with a seemingly cautious optimism amongst those involved in pertinent activities.
Total investment rose slightly during this period compared to the previous quarter in 2023. This number was still significantly below that generated in 2021 and the early part of 2022. The trend seen was certainly one characterized by an air of caution and influenced by fewer exits along with increasing interest rates.
Investors have seemingly chosen to focus more on fundamentals as 2023 comes to a close. A rather significant decline was seen as compared to previous quarters, and the shift appears to be rather uniform across most of the sectors that we are involved with.
The global numbers are in and the total amount raised by companies amounted to a bit over $73 billion. This is down from the $85 billion that organizations put together during Q3 of the previous year, but the amount is up a bit from quarter two of 2023. Although the slight uptick may be welcome by many, it’s still important to note that the trend remains level if not still on a slight decline given the cash outlays viewed during the past year and a half.
The tallied marks for the second quarter of 2023 are in and, as expected, the amount of cash acquired by companies seeking assistance continues to follow the downward path. Approximately $65 billion was deposited in the coffers of about 6000 startups during this period which represents a considerable departure from Q2 of 2022 where 9500 organizations collected a total of $125 billion.
Numbers have arrived for the most recent quarter and, to little surprise, overall Q1 2023 venture funding results have continued to follow a downward trend that started during the first quarter of 2022. Although two large exchanges occurred in the forms of OpenAi and Stripe, these were certainly the exception as drops were seen across the board including in the early-stage realm which has been somewhat resistant to general course inclinations.
The numbers are in for 2022 venture funding activities and, to little surprise, there was a bit of a drop-off from the record amounts distributed in the previous year. Approximately $450 billion were taken in by various entities across the globe in 2022 while the overall figure garnered in 2021 tallied about $680 billion. This is certainly a rather precipitous drop by any scale.
Recently released reports show that through the third quarter of 2022 approximately $290 billion is at the reach and behest of venture capital firms while the volume of investment has decreased about 10% from the record number of the prior year. Around $140 billion of the aforementioned amount raised was put together during the first half of the current year and represents an almost equal figure for that accumulated during the entirety of 2021.
The figures are in for the third quarter of 2022. They show that just a bit shy of $75 billion was generated by the world venture capital market during this period. This represents about a 35 percent quarterly decline and a drop of nearly 60% from the high-water level generated in Q4 of 2021. The number of deals seen came in at almost 8000 which was about 10% fewer than the previous period.
The final tally for the second quarter of 2022 is in and, to no surprise, there was another drop in overall global investment from the high marker level of Q3 2021. Overall numbers came in at about $120 billion dispersed across approximately 7600 deals. The U.S. and Asia accounted for 69% of these exchanges with the former once again heading allotments at 35% of all transactions. These numbers are still well above those seen from the same quarter in 2020, and there are particular trends that appear to bode well for certain groups of companies operating at select stages of growth.
Motion Chart of U.S. Venture Funded IPO’s from 1998-2008 Given the events of 2008, it seemed like now would be a good time to take a look at the U.S. IPO market for venture funded enterprises and see how it has fluctuated during the past 10 years. One of the most…