Apr 3, 2024 - Business

U.S. venture capital investment sees Q1 dip

Data: PitchBook; Chart: Axios Visuals
Data: PitchBook; Chart: Axios Visuals

U.S. venture investing saw a quarter-to-quarter dip to start the year, while exits surged on a batch of IPOs.

Why it matters: The funding rebound many are hoping for might take longer to arrive.

Zoom in: U.S. venture deals nudged 8.7% lower to $36.6 billion in the first quarter compared to the prior quarter. Year-over-year, U.S. venture investing dropped 29% during the period, according to PitchBook data.

  • Globally, VC investment fell 21% to $75.9 billion in the first quarter compared to the year ago period.

Yes, but: U.S. exits doubled to $18.4 billion, boosted by an early wave of IPOs.

  • The Reddit and Astera Labs IPOs netted 73.4% of the total exit value for the quarter.

Zoom out: Globally, the $30.7 billion in exit value during the quarter was an 18% drop year over year, and the lowest level since 2016's Q4, per Pitchbook. The drop comes as IPOs stage a modest comeback and M&A activity lags across the globe.

By the numbers: The number of venture capital investments also fell.

  • U.S. Q1 totals reached 2,882, a 28% drop from a year go. Globally, VCs invested in 7520 deals, a 37% year-over-year plunge.
Global VC exit activity, by region
Data: PitchBook; Chart: Axios Visuals
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