KPMG - Venture Pulse, Q2 2023

The Q2’23 edition of KPMG Private Enterprise’s Venture Pulse provides a comprehensive analysis of the global venture capital market, highlighting major trends, challenges, and opportunities. Despite market challenges, a few mega-deals were made this quarter, including a $6.9 billion raise by Stripe, a $2 billion raise by Shein, and a $1.3 billion raise by Inflection. VC investors remained cautious, focusing on profitability and sustainability of startup business models. China was the only exception to the decline in fundraising activity. The report also examines trends in AI and generative AI solutions, growing focus on profitability at all deal stages, continuing focus on alternative energy and battery storage, and declining global fundraising activity. The report notes that AI and generative AI solutions are becoming increasingly important in the venture capital market, with investors looking for startups that can leverage these technologies to create new products and services. The report also highlights the growing focus on profitability at all deal stages, with investors looking for startups that can demonstrate a clear path to profitability. The report notes that alternative energy and battery storage continue to be areas of focus for venture capital investors, with many investors looking for startups that can help address the world’s energy needs. Finally, the report highlights the declining global fundraising activity, with many investors remaining cautious due to geopolitical uncertainties, stubbornly high inflation, and the possibility of further increases to interest rates in a number of major jurisdictions.