KPMG Private Enterprise’s quarterly report highlights the key trends, opportunities, and challenges facing the VC market globally and in key jurisdictions around the world. 2023 was a very challenging year for the VC market globally, as a number of factors combined to drive up uncertainty and investor caution, including geopolitical conflicts and tensions, high interest rates and levels of inflation, ongoing concerns about valuations, and the incredibly dry exit environment. Both global VC investment and the number of VC deals significantly dropped year-over-year, with all regions experiencing major declines.
In this quarter’s edition of Venture Pulse, we examine these other global and regional trends, including:
- The ongoing surge of investment into AI
- The intensifying focus on profitability
- The growing prominence of down rounds
- The significant slowdown in the time to complete deals
- The lack of exit opportunities across regions
