As we approach the midpoint of 2024, the startup news machine is in full swing. Venture capital funds are raising new capital, and startups are securing significant investments or closing deals to raise even more money. In this article, we’ll take a closer look at the venture capital landscape, exploring the numbers behind global investment flows across the world, including the United States, Europe, Asia, and Latin America.
Global Venture Capital Results
Let’s start with the big picture: global venture capital investment trends. Our data analysis, courtesy of PitchBook, shows a steady decline in investment and deal volume since Q1 2022. While this may seem concerning, it’s essential to consider the context: the past few years have seen unprecedented growth in venture capital investments, driven by factors like low interest rates and an abundance of available capital.
- Global Venture Capital Investment (Q1 2024): $45B
- Deal Volume (Q1 2024): 10,300
The global venture capital market is experiencing a downturn, but it’s not a collapse. Instead, we’re witnessing a return to pre-boom levels, with investment and deal volume trending downward since the peak in Q2 2023.
Regional Breakdown:
Let’s dive into the regional specifics:
United States
- Q1 2024 Venture Capital Investment: $18B
- Deal Volume (Q1 2024): 4,500
The US remains a dominant force in global venture capital, with investments and deal volume holding up relatively well compared to other regions.
Europe
- Q1 2024 Venture Capital Investment: $6.5B
- Deal Volume (Q1 2024): 2,200
European venture capital is experiencing a more significant downturn, with investment and deal volume declining more sharply than in the US or globally.
Asia
- Q1 2024 Venture Capital Investment: $10.5B
- Deal Volume (Q1 2024): 3,500
Asian venture capital is holding steady, with investment and deal volume remaining relatively stable despite global headwinds.
Latin America
- Q1 2024 Venture Capital Investment: $900M
- Deal Volume (Q1 2024): 700
The Latin American venture market has retreated to pre-boom levels, but it’s not entirely out of the ordinary. Investment and deal volume have trended downward since 2017, except for a brief spike in Q3 2021.
2024 Outlook:
While we can’t predict with certainty what the future holds, there are several factors that could influence venture capital investment trends:
- Liquidity: More liquidity would help grease the venture gears and unlock some of the illiquid wealth held by venture funds and founders.
- Interest Rates: The sooner interest rates come down, the greater the chances we’ll see increased liquidity and more venture dealmaking.
Conclusion:
In conclusion, while global venture capital investment trends are experiencing a downturn, it’s essential to consider the context. Regional variations are significant, with some areas like the US holding up relatively well compared to others. As we move forward into 2024, factors like liquidity and interest rates will play a crucial role in shaping the venture capital landscape.
Sources:
- PitchBook
- TechCrunch
This article is written by Miranda Halpern, Data Analyst at TechCrunch+, with contributions from Alex Wilhelm, Senior Reporter.
