The US and China continue to dominate the venture capital space according to GlobalData
Global venture capital continued to favour the United States and China in the first half of 2023, accounting for most of the volume and value of high-value VC deals announced.
The two countries were the preferred investment destination for 70% of volume and 77% of value of high-value VC deals (at least $100m) announced globally in H1 2023 according to GlobalData.
Canada was among the top 10 countries for deals (in 9th place) with three deals for a combined value of $490 million. A recent report shows that Canadian VC recovered in the second quarter of 2023.
The UK, Germany, India, France, Singapore, South Korea, and Switzerland complete the top 10.
But it hasn’t been an easy period for the market. Aurojyoti Bose, lead analyst at GlobalData, said that VC funding activity has taken a hit globally due to dent in investor sentiments amid challenging market conditions.
“However, it did not alter the US’ dominance in global VC funding landscape. In fact, the US outpaced its peers by a significant margin. It alone accounted for more than half of these high-value VC deals volume and value in H1 2023.”
China ranks second
China was some way behind the US for deal volume (19% vs. 50%) and value (18% vs. 59%) and its startup ecosystem, as with global peers, is suffering from a funding crunch.
“However, China still continues to be a highly preferred investment destination for VC firms and stands just next to the US in terms of high-value VC deals volume and value,” added Bose.
As for the outlook, Bose says that market challenges remain, but the US and China will continue to dominate the VC market, despite interest in key areas such as artificial intelligence.
“As investors navigate uncertainties, these two markets are expected to play a pivotal role in shaping the future of VC investments," he said.
