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Infographic – Venture Funds Continue Slide in Q2

Bar chart: Global venture capital investment dollars by quarter to Q2 2023

Click on image for full-size view (Crunchbase)

8 July 2023. Venture capital funding for start-ups worldwide continued dropping in the second quarter of 2023 with dollar volumes down by double digits from just the first quarter of the year. Data released by Crunchbase News this week show both the number of venture deals and investment dollars declining in April through June, despite a burst of financing for new companies working with artificial intelligence.

In the second quarter, venture investors placed $65 billion in start-ups globally, down by 18 percent from the first three months of 2023, and about half (49%) of the second quarter of 2022. The number of venture capital transactions worldwide also declined from the first quarter, but by a less drastic nine percent, yet still down by 37 percent from the second quarter in 2022. The total $144 billion of venture investments in the first half of 2023 represents a 10 percent decline from the second half of 2022, and about half (49%) of the 293 billion invested in the first half of 2022.

Total dollars and deals in the second quarter declined across the board for all venture investment rounds worldwide, from seed to late-stage and growth capital. Only early-stage rounds, known as series A and B, held their own with a decline of only $200 million from the first quarter to $26.7 billion in Q2 2023, despite 106 fewer venture deals.

The only bright spots so far in 2023, says Crunchbase, are investments in companies working with A.I., raising $25 billion in the first half of the year or 18 percent of all global venture finance this year. However, just two deals account for nearly half of the total A.I. venture investments so far in 2023: $10 billion in generative A.I. developer OpenAI and $1.3 billion in personal chatbot company Inflection A.I.

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