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Global Venture Funding In Q3 2023 Falls Again Despite Late-Stage Rebound Led By Huge AI Deals

Oct 05, 2023 - news.crunchbase.com
Global venture funding in Q3 2023 reached $73 billion, a slight increase quarter over quarter but a 15% decrease from the $86 billion invested in Q3 2022. Despite the quarter-over-quarter increase, this is the second-lowest quarter since funding began to decline in 2022. Seed and early-stage funding continued to decline year over year, while late-stage funding increased by close to 10% year over year and 30% quarter over quarter. Large fundings were raised by companies in strategic sectors such as semiconductors, AI, electric vehicles, and sustainability.

AI companies raised over $10 billion in Q3 2023, with the largest rounds going to OpenAI competitor Anthropic and cloud data company Databricks. Late-stage funding increased in Q3, with large fundings going to companies in the semiconductor, sustainability, and AI sectors. However, early-stage funding showed the steepest decline year over year, and seed funding also decreased. Despite large fundings to AI, semiconductor, and sustainability sectors, global funding has slowed down, with a 42% decline year over year for the first three quarters of 2023.

Key takeaways:

  • Global venture funding in Q3 2023 reached $73 billion, down 15% from the $86 billion invested in Q3 2022, with seed and early-stage funding continuing to decline.
  • AI companies raised more than $10 billion in Q3 2023, with the largest rounds going to OpenAI competitor Anthropic and cloud data company Databricks.
  • Late-stage funding increased in Q3 2023, up 30% quarter over quarter and almost 10% year over year, totaling $43 billion, with significant growth in Asia and Europe.
  • Despite large fundings to AI, semiconductor and sustainability sectors, global funding in the first three quarters of 2023 marked a 42% decline year over year, down from the $381 billion invested in the same timeframe in 2022.
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