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      Both global VC investment and the number of VC deals significantly dropped year-over-year, with all regions experiencing major declines, particularly in Asia. Heading into Q1’24, global VC investment is expected to remain subdued given the degree of uncertainty in the market both geopolitically and economically.


      KPMG Private Enterprise's quarterly report analyses the latest global trends in venture capital investment data and provides insights from both a global and regional perspective. This edition provides in-depth analysis on the lifecycle of venture capital investments across the Americas, EMA and ASPACincluding a look at investment activity such as valuations, financing, deal sizes, mergers & acquisitions, exits, corporate investment and industry highlights. ​​​​​​​​​​​​​​​​​​​​​

      Ongoing market challenges, including the lack of exits, high interest rates, and continued geopolitical uncertainties kept VC investors cautious during Q1’24. In addition to scrutinizing potential deals more heavily, VC investors also showed less willingness to provide bridge funding to their existing portfolio companies, driving startups to increase their focus on cost cutting and achieving profitability even further.

      In this quarter’s edition of Venture Pulse, we examine these and a number of other interesting global and regional trends, including:

      • Noticeable drop in Series D+ deals

      • Protracted lack of IPO and M&A exit opportunities

      • Increasing interest in defense technologies

      • Growing number of secondary transactions

      • Continuing investment in AI and cleantech

       

      venture-pulse-q4-2023.pdf

      Venture Pulse Q4 2023

      Global analysis of venture funding

      Asia outlook & insights

      Both VC investment and the total number of VC deals in the Asia-Pacific region pulled back significantly during 2023, amidst rising interest rates and other economic challenges, geopolitical tensions, and concerns about liquidity and the lack of exits. Q4’23 was particularly quiet for VC investment in the region, despite two $1 billion-plus funding rounds — one by China-based semiconductor manufacturer Changxin Xinqiao and the other by Singapore-based, ecommerce company Lazada.

      VC investment in the Asia-Pacific region is expected to remain quite soft heading into Q1’24, although there will likely continue to be solid investments in areas like artificial intelligence, deeptech, cleantech, and alternative energy.

      Venture Pulse financing in asia

      • VC investment reaches only $18.8 billion across 2,390 deals

      • Valuations plunge — particularly for late-stage deals

      • Early-stage activity remains resilient

      • Investment in Japan rises for the 4th consecutive quarter

      • Chinese companies raise 7 of largest 10 deals in Asia

      For more insights into key trends, opportunities and challenges facing the VC market globally and across regions, download our full report.

      2 https://www.hkma.gov.hk/eng/news-and-media/press-releases/2023/08/20230825-3/
      3 https://www.hkma.gov.hk/eng/news-and-media/press-releases/2023/12/20231211-4/


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      This article was first published in The Business Times on 22 November 2023

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