Just released: How to raise venture capital in 2023

Download
Resources

Startup Survival Guide: Essential Venture Capital Statistics

Adam Hide
Adam Hide

EVP, Marketing

Article Summary
TL:DR

Key Takeaways
Adam Hide
Adam Hide

EVP, Marketing

What’s the startup industry without some challenges? The 2023 venture capital landscape definitely proved this — challenging was an understatement. Reports show that dominant markets like the US saw record-breaking fundraising lows, which sounded the alarms for founders worldwide. However, this downturn was expected, as geopolitical tensions multiplied and interest rates soared. What’s in store for the rest of 2024 according to last year’s numbers? Let’s take a look at 100 statistics that summarize the state of the startup world today.

EBOOK

De-Risk the Fundraising Journey

Secure your future. Learn how to safeguard your fundraising goals.
Download

While the overall VC sector might be showing a slowdown in funding, it’s a pause, not a stop. There are still positive signs: a slight uptick in funding from Q4 2023 to Q1 2024 and continued investor interest in specific sectors like healthcare and AI. This suggests a shift towards strategic investments in sectors with strong growth potential and therefore is an opportunity for startups with a clear path to profitability.

Seed-Stage Funding Statistics

3,850 deals

Global Seed and Angel deals have been steadily declining for a year, with 3,850 deals in Q1 2024 compared to 6,276 in Q1 2023.

crunchbase logo

Over 53%

Over 53% of US pre-seed deals went to startups outside hub markets (Bay Area, New York, LA and Boston).

pitchbook logo

Fell by 33%

Deal count fell by 33% at the seed stage in Q1 2024.

carta logo

Most seed rounds in 2023

SV Angel led the most seed rounds in 2023, with 47, followed by 500 Global with 28.

dealroom

Pioneer Fund, Y Combinator and Elevate Ventures were the most active investors in pre-seed and Seed rounds in Q1 2024 with 51, 20 and 20 rounds led respectively.

pitchbook logo

$100 million

The biggest Seed round in Q1 2024 was Alys Pharmaceuticals with $100 million from Medicxi Ventures.

cbinsights logo

Most seed unicorns

UK investor LocalGlobe funded the most seed unicorns in 2023 in the EMEA region with 13 startups.

dealroom

Preferred investment instrument

SAFEs were the preferred investment instrument for all rounds under $3 million in Q1 2024.

carta logo

$364.9 million

In Q2 2024, pre-seed rounds fundraised $364.9 million while seed rounds received $3.1 billion. These are slight decreases from $547.1 million and 3.8 billion in Q1.

dealroom

Early-Stage Statistics

$29 billion

Despite the overall funding dip in 2024, early-stage funding grew by 6% YoY with over $29 billion invested.

crunchbase logo

Most post-seed funding rounds

Andreessen Horowitz participated in the most post-seed funding rounds in Q1 2024, investing in 27 rounds. Y Combinator and General Catalyst complete the top three.

crunchbase logo

36% of early-stage deals

36% of early-stage deals in Q1 2024 took place in the US, with Asia closely behind with 32%.

cbinsights logo

Almost 55% of US early-stage deals

Almost 55% of US early-stage deals went to startups located in the Bay Area, New York, LA and Boston.

pitchbook logo

Sequoia Capital, Accel and Andreessen Horowitz led the most Series A funding rounds in 2023 with 90, 75 and 58 respectively.

dealroom

$1.5 billion

Moonshot AI led the highest Series B round in Q1 2024 with $1.5 billion from Alibaba Cloud, HongShan, Meituan and other investors. - CB Insights

cbinsights logo

Late-Stage Statistics

AI valuation was $40 million

AI startups continue to take the cake in 2024. In Q1 2024, the industry median late-stage AI valuation was $40 million, dethroning fintech and SaaS.

pitchbook logo

Most late-stage deals

The most late-stage deals in Q1 2024 took place in Asia, with 36% in that region.

cbinsights logo

130% increase

Carta Series C startups raised $4.6 billion in new capital in Q1 2024, a 130% increase from Q4 2023. The median primary Series C valuation was $195.7 million, up 48% from the prior quarter.

carta logo

Most late-stage funding rounds

Alumni Ventures, FJ Labs and General Catalyst led the most late-stage funding rounds in Q1 2024 with 13, 9 and 9 respectively.

pitchbook logo

Late-stage and growth deals increased from 487 to 517 QoQ in Q1 2024, but total investment decreased slightly from $31.1 billion to $29.5 billion.

crunchbase logo

Over 75% of the share

Over 75% of the share of late-stage VC deal value in Q1 2024 went to startups located in the Bay Area, New York, LA and Boston.

pitchbook logo

Fell to 9%

Late-stage deal percentage fell to 9% in Q1 2024, behind early- and mid-stage deals.

cbinsights logo

Increased by 10 rounds

Series D rounds in Q1 2024 fell from 35 to 23 QoQ. However, this is still a positive change as they increased by 10 rounds YoY.

carta logo

Raised $23.1 billion

In Q2 2024, late-stage mega-rounds (between $100-$250 million) fundraised $12.3 billion, while mega-plus rounds (over $250 million) raised $23.1 billion.

dealroom

$439.2 million to $212.1 million

Series D valuations had a stark decrease in Q1 2024, as they went from $439.2 million to $212.1 million QoQ.

carta logo

Diversity, Equity, and Inclusion Statistics

Signed Senate Bill 54 into law

In October 2023, California Governor Gavin Newsom signed Senate Bill 54 into law, requiring VC firms to report on the diversity of the founding members of businesses they invest in.

Equities

US raised 0.48% of all VC funding

Black founders in the US raised 0.48% of all VC funding allocated last year. That's around $661 million out of $136 billion, the lowest amount in recent history.

techcrunch logo

Four black-founded funds raised capital in 2023

The bear market is impacting black fund managers as only four black-founded funds raised capital in 2023, compared to 13 in 2022 and 13 in 2021.

techcrunch logo

$10 billion in investment

Although Wall Street has generally been moving away from DEI programs, Goldman Sachs announced it's expanding its One Million Black Women initiative. The program was started in 2021 to dedicate $10 billion in investment and $100 million in philanthropic spending over 10 years to address racial and gender inequality.

The guardian logo

First Close Partners has been awarded the National Venture Capital Association's 2024 DEI Impact Award. This award acknowledges individuals, organizations, or firms significantly contributing to advancing DEI within the venture ecosystem. First Close Partners invests in venture capital funds owned and led by underrepresented managers worldwide.

nvca

Women-founded startups

Women-founded startups accounted for 2% or less of VC funding invested in Europe and the US in 2023.

forum

20.7% of total US VC funding

However, the share of female co-founded VC capital was the highest on record in 2023, at 20.7% of total US VC funding.

pitchbook logo

$3.5 billion in 2023

Eighty-six women-led VC funds raised a combined total of $3.5 billion in 2023, around $500 million more than they raised in 2022.

venture capital logo

€5.9 billion in European investment

In 2023, 1,007 female-founded companies received €5.9 billion in European investment.

State of Gender Diversity logo

Evenly split across investing roles

In 2023, research in LatAm showed that women and men were almost evenly split across investing roles—49.4% and 50.6%, respectively.

diversity vc logo

Global Venture Capital Statistics

€4 billion invested

The UK reigns supreme in Europe for VC funding in women-founded startups, with nearly €4 billion invested across 720 deals in 2023.

forum

Leads globally for VC investment raised

So far, in 2024, the San Francisco Bay area leads globally for VC investment raised, followed by Beijing, New York, and London.

dealroom

Surpassing $1.4 billion

VC investment in Canada showed robust growth, increasing from $976 million in Q3 2023 to surpassing $1.4 billion in Q4. - KPMG

kpmg logo 1 1

$182 million raise

Energy and cleantech are two of Canada's VC hotspots, led by a $182 million raise by geothermal-focused alternative energy company Eavor and a $54 million raise by carbon removal company Deep Sky.

kpmg logo 1 1

VC funding in Asia tumbled to $17.3 billion in Q1, marking an 8% decline year-over-year and a 4% dip compared to Q4 2023. This is the lowest quarterly funding total for the region since Q4 2016.

crunchbase logo

31% decrease in volume

In Africa, the total raised amounted to $4.5 billion across 603 deals in 2023, marking a 31% decrease in volume and a 30% decrease in value compared to 2022.

AVCA

VC investment fell globally

In 2023, it's no secret that VC investment fell globally. However, some African and MENA ecosystems bucked the trend, including Morocco, Cameroon, Oman, and Saudi Arabia.

dealroom

Leading sectors for funding

Financial services, healthcare, and energy were leading sectors for funding in Europe.

crunchbase logo

Down almost 20%

Although VC activity in Brazil dropped significantly in Q4 2023, with deal numbers down almost 20% compared to Q3, the total investment amount remained relatively stable. This is thanks to a significant funding round of $197 million secured by QI Tech, a company specializing in B2B enablement solutions.

kpmg logo 1 1

Company raised $430 million

Monzo, a digital bank headquartered in London, secured the largest funding round in Europe during Q1. The company raised $430 million at a valuation of $5 billion, with Alphabet's growth fund, CapitalG, taking the lead.

crunchbase logo

Raised an estimated JPY 850 billion

Over the past decade, investments in Japanese startups have increased tenfold. In 2023 alone, Japanese startups raised an estimated JPY 850 billion (approximately $6 billion), surpassing South Korea (roughly $4 billion) and nearing Germany's figures (approximately $8 billion).

Globis

China is currently experiencing a shift in its traditional investment partners. Foreign VC firms are backing out due to economic and political reasons, but Chinese domestic investors are taking their place. The biggest funders are now China's state-backed institutions and tech giants, who have participated in around 60 of the 100 largest deals from 2021 to June 2024, twice as many as from 2017 to 2020.

Yahoo Finance

18% of global VC

Around 18% of global VC funding was allocated to European startups in Q1 2024, while North America represented just over 50%.

crunchbase logo

219 deals completed

In Q1 2024, two-thirds of VC investment — totaling $2.4 billion — flowed into UK businesses, with over half of the 219 deals completed by businesses based in London.

crunchbase logo

Sources

Pitchbook
KPMG
Dealroom
CB Insights
BCG
Crunchbase
TechCrunch
Ernst & Young
Carta
Cooley
RockHealth
Bloombberg NEF
Venturebeat

CNBC
PWC
Fintech Futures
Equties.com
The Guardian
NVCA
World Economic Forum
Venture Capital Journal
State of Gender Divercity
Divercity VC
AVCA
Globis Capital Partners
Yahoo Finance

Related Articles

Cyber Security Stats 2023
August 3 • Resources

100+ Cybersecurity Statistics 2023

Fresh off the heels of a devastating pandemic, let’s explore cybersecurity statistics 2023 — even after enduring covid, these stats may surprise you!

Read Article
venture capital statistics
June 28 • Resources

Venture Capital & Startup Statistics to Prep Founders for 2023

To provide you with a comprehensive overview of the VC funding landscape, we have compiled 100 stats that will give you valuable insights into where investors currently stand and where you should aim your sights for 2023. Get ready to navigate the funding world armed with knowledge and confidence.

Read Article
venture capital statistics
May 31 • Resources

Venture Capital Stats to Prep Founders for 2023

To provide you with a comprehensive overview of the VC funding landscape, we have compiled 100 stats that will give you valuable insights into where investors currently stand and where you should aim your sights for 2023. Get ready to navigate the funding world armed with knowledge and confidence.

Read Article
Preparing for an IPO — How to De Risk the Journey
May 5 • Resources

Preparing for an IPO — How to De-Risk the Journey

Series C fundraising is sometimes the last stop before a company goes public. Here’s how to de-risk those aspirational dreams and what you can expect from this finish line.

Read Article
Why You Need Operational Risk Management at Series C
May 5 • Resources

Why You Need Operational Risk Management at Series C

Late-stage startups must often navigate more management liability issues than other companies. Let’s discuss how to navigate this maze of scrutiny and gauntlet of operational risks.

Read Article
Risks for Late Stage Startups How to Overcome Them
May 5 • Resources

Risks for Late-Stage Startups & How to Overcome Them

Late-stage startups face unique challenges when embarking on a Series C funding round, from regulatory compliance to global economic threats. Let’s discuss some risk management solutions to overcome these challenges.

Read Article