Against the backdrop of high interest rates, global primary market financing suffered a total rout last year.
According to the latest data from the information creator economic database,Global startup funding continued to spiral in 2023, falling nearly 58% from the previous year to about $1.7 billion. Among them, the amount of funding for U.S. startups alone fell by 62% year-on-year to 10$300 million.
Startups were once a highly sought-after investment track, but as venture capital funds dried up in a high-interest rate environment, startups struggled to raise funds.
According to The Information, at least 36 startups were acquired or merged with competitors worldwide last year, more than double the number the year beforeAt least eight startups have failed, double the number in 2022.
It is worth mentioningIf AI-related investments are excluded, startups may raise less money. Last year, AI startups raised 3$2.4 billion, the largest share of all startups.
In fact, two of the biggest funding rounds of the year came from AI companies.
Runway raised 1$4.1 billion, the company's model can be generated from text prompts or existing images**.
Synthesia, a London-based AI text** platform, raised $90 million in October in a Series C funding round led by venture capital firm Accel.
In addition, there were very few large-scale financing deals last yearThe only startup that has raised more than $100 million is Runway, while in 2022, there are 8 U.S. startups that raised more than $100 million, totaling $13$800 million.
U.S. startups raised more than 48% year-on-year in the fourth quarter of last year to 1$85.5 billion.
The largest of these deals were payments startup Mozaic raising $20 million in a Series A round led by Volition Capital and Webcam Opal Camera raising $17 million in a Series A round led by Founders Fund.
But globally, startup funding has improved dramatically. In the fourth quarter of last year, global start-up funding tripled from the same period last year to 1$90.9 billion.
The largest of these was the European audiobook and podcast service Podimo, which raised about $48 million in December.
In addition to AI startups, marketing startups attracted the most global investor funding in Q4, including a $58 million Series B funding round from brand management company Super Ordinary.