CB Insights – State of Venture, 2023

According to CB Insights' State of Venture Q3'23 Report, global venture funding has reached $64.6 billion in the third quarter of 2023, which is an 11% increase compared to the previous quarter. This growth is attributed to significant deals in sectors such as electric vehicles, sustainable manufacturing, and artificial intelligence. However, despite the increase in funding, the overall deal count has declined for the sixth consecutive quarter, reaching 6,111. This is the lowest quarterly level since 2016, indicating a decrease in the number of deals being made. Some key takeaways from the report include the fact that new unicorn births have dropped by 40% in Q3'23, reaching the lowest total in years. On the other hand, the global initial public offering (IPO) market continues to rebound, experiencing a 24% increase compared to the previous quarter. Additionally, half of the top 10 largest equity deals in this period have gone to the electric vehicle industry, highlighting the growth and investment in this sector. Europe is leading in terms of global exit share at 38%, closely followed by the United States at 35%. Overall, the report shows that while there has been an increase in venture funding, the number of deals being made has decreased. The electric vehicle industry, sustainable manufacturing, and artificial intelligence continue to attract significant investment, and the IPO market is on the rise. Europe and the United States remain key players in terms of global exit share.