KPMG – Venture Pulse, Q4 2023

In the fourth quarter of 2023, global venture capital (VC) investment slightly declined to $74.9 billion across 7,572 deals. Down rounds, which represent decreasing valuations, persisted and increased as a percentage of all deals. However, the B2B and healthcare sectors remained resilient. Venture fundraising remained muted compared to the previous year. US companies accounted for 6 of the top 10 deals globally, with VC deal value falling slightly to $37.5 billion across 2,879 deals. Down rounds also climbed towards pre-2018 levels, and corporate VC investment continued to decline. Exit activity was slow due to IPOs being put on hold, though there was a surprising surge in first-time fundraisers to close the year. In the Americas, VC-backed companies reached $40.1 billion across 3,225 deals, with early-stage deals remaining resilient. Canada experienced a slight rebound, with $1.4 billion invested in Q4. AI, cleantech, and healthtech investment remained robust. In Europe, investment remained cool, with $13.8 billion invested across 1,750 deals. Down rounds ticked up to the highest levels since the pandemic, and first-time financing volume returned to pre-boom levels. Capital continued to be concentrated on mid-sized funds, with AI, ecommerce, and fintech dominating the top 10 deals. In Asia, VC investment reached only $18.8 billion across 2,390 deals, with valuations plunging, especially for late-stage deals. However, early-stage activity remained resilient, and investment in Japan rose for the fourth consecutive quarter. Chinese companies accounted for 7 of the largest 10 deals in Asia.