Q2 2023 Venture Capital Funding Numbers
Global funding numbers decrease almost 50% from the prior year
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 previously established 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. Figures for the initial half of the year show that about $145 billion flowed to growing ventures while during the previous year the same type of companies drew in around $295 billion.
Companies in the latter stages of growth saw the sharpest declines primarily due to valuations that are often absurdly beyond reasonable and recognizable levels. Interest rate uncertainty also undoubtedly has contributed in a major fashion to an approach characterized by tepid trepidation and a more reasoned approach to selectivity.
Well, other than…
AI continues to lead market movement
As Nvidia soared past the $400/share point, Databricks snapped up MosaicML, and OpenAI continued its explosive growth, Artificial Intelligence related startups became the quarry of choice for many firms. Indeed, almost 20% of all traced events during this period can be attributed to AI plays. Inflection AI snagged over $1 billion, Anthropic took in a $450 million C round, and Adept AI saw its bank account increase by $350 million. This trend will almost certainly continue into the next quarter and well beyond that as VC’s open the coffers in a quest to gain a slot aboard both probable and highly improbable growth engines.
