WilmerHale – VC Report, 2024

In 2023, venture capital financing activity decreased for the second consecutive year due to rising interest rates, economic concerns, and geopolitical tensions. The number of reported venture capital financings and total financing proceeds dropped significantly. Despite this, the total proceeds for the year were the fourth-highest on record. The median size of venture capital financings also declined, with early-stage and later-stage financings experiencing the biggest decreases. The number of financing rounds of $50 million or more, $100 million or more, and $250 million or more all declined sharply. There were 10 billion-dollar venture financing rounds in 2023, with most occurring in the fourth quarter. The median pre-money valuation for all venture financings also decreased, except for angel and seed rounds. Overall, the financing landscape in 2023 saw a significant decline in activity and size, reflecting the challenging economic and geopolitical environment.