US VC funding falls 35.7% YoY to $24.2 billion in Q1 2024, yet global dominance intact, finds GlobalData

22 Apr, 2024 US VC funding falls 35.7% YoY to $24.2 billion in Q1 2024, yet global dominance intact, finds GlobalData

Posted in Business Fundamentals

The US startup ecosystem saw the announcement of a total of 1,137 venture capital (VC) funding deals of worth $24.2 billion during the first quarter (Q1) of 2024. This represents a decline of 49.1% in terms of deal volume and 35.7% in terms of value compared to Q1 2023. Despite a decline from the previous year, the US maintains its global VC funding landscape dominance, finds GlobalData, a leading data and analytics company.

An analysis of GlobalData's Deals Database reveals that a total of 2,232 VC funding deals were announced in the US during Q1 2023, whereas the disclosed funding value of these deals stood at $37.7 billion.

Aurojyoti Bose, Lead Analyst at GlobalData, comments: "The US has been experiencing a month-on-month fluctuating trend in 2024 so far with February experiencing a rebound in deal activity after months of decline and March again seeing a fall in VC deals volume and value. However, despite the fluctuations or decline, the US continues to dominate the global VC funding landscape."

The US was the top market globally in terms of both VC funding deals volume and value in Q1 2024. It accounted for 27.8% share of the total number of VC funding deals announced globally during the quarter while its share of the corresponding deal value stood at 42.6%.

Some of the notable venture funding deals announced in the US during the Q1 2024 included $700 million worth of funding raised by Wonder, $675 million secured by Figure AI, $400 million worth of funding raised by Mirador Therapeutics, $320 million funding raised by Lambda, $300 million secured by Rain Technologies and $259 million worth funding raised by Alumis, among others.

Of these startups, Figure, Lambda, and Rain Technologies joined the unicorn club with the funding raised during Q1 2024.

Bose concludes: "Q1 2024 revealed a US venture capital scene grappling with fluctuations yet maintaining its global dominance. With notable deals propelling new unicorns, the stage is set for a year of resilience and evolution. Looking ahead, while challenges persist, the underlying innovation and investor interest suggest a landscape ripe for further growth and transformative deals in the remainder of the year."

Note: Historic data may change in case some deals get added to previous months because of a delay in disclosure of information in the public domain.