Q1 2024 Venture Capital Funding
Venture funding during this quarter was a mixed bag
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.
Primary takeaways:
• Investment on a global scale decreased. Total numbers reached about $75 billion spread across approximately 7500 deals.
• Funding in the US dropped from about $40 billion to just north of $36 billion.
• Early-stage funding increased a fair amount and was driven primarily by companies seeking Series B rounds. Electric vehicles and green energy initiatives were amongst the primary drivers in this realm.
• Large rounds saw a fairly strong increase. Those that came in at the $100 million plus mark jumped more than 30% over the previous period.
• Fintech realized a fairly substantial drop in monies gathered while the healthcare and retail sectors showed gains that were noticeable. Nonetheless, a few areas in the financial area gained traction as those in the DeFi and digital banking areas stood out.
• AI, blockchain, quantum computing, and cleantech remained areas of high interest to those seeking financial investments.
• Movement in the sustainability sector continued to be significant. Those that figured most prominently include energy startups and sustainable agriculture offerings.
• Healthcare companies continued to garner attention driven by advances in telemedicine, digital therapeutics, and genomics.
• Ecosystems that are not historically significant continued to emerge and grow. Europe, Asia, and other regions propelled a surge in funding.
