Fundraising for venture capitalists also fell, with American venture funds raising $66.9 billion and global funds taking in $160.9 billion. As a result of the funding decline, many startups are laying off employees or closing down. Approximately 3,200 venture-backed firms in the U.S., which had raised $27.2 billion, went out of business in 2023.
Key takeaways:
- Startups had a tough year in 2023, with venture investments hitting a four-year low, with $170.6 billion invested in the U.S. across 15,000 deals, a 30% decrease from the previous year.
- Investors worldwide invested $345.7 billion into startups, a 35% drop from 2022 and the lowest level since 2017.
- Fundraising for venture capitalists also decreased, with American venture funds raising $66.9 billion in 2023, and globally funds took in $160.9 billion.
- Approximately 3,200 venture-backed firms in the U.S. went out of business in 2023, having raised $27.2 billion.