Both VC investment and the number of VC deals remained subdued in Q3’24, as many VC investors globally remained in a holding pattern given the current uncertainties still permeating the market, including the continued lack of exit activity across all regions of the world.
VC investment in the US dips slightly; AI continues to attract big tickets
VC investment in the US fell in Q3’24, driven in part by an expected seasonal slowdown in VC deals activity. Given the approaching presidential election, some US VC investors have also pulled back from making major investment decisions until the outcome of the election is known and the potential policy directions of the next president are better understood
VC investment in Americas slows in Q3’24 despite strong quarter in Canada
VC investment in the Americas slowed between Q2’24 and Q3’24, driven by somewhat softer investment in the US, including a decline in the number of $1 billion+ megadeals from six to two. While the US continued to account for the vast majority of VC funding in the region, Canada saw a very robust quarter of VC investment — particularly compared to all but the outlier quarters of investment it experienced between Q1’21 and Q1’22. VC investment in Latin America was soft, however, with investment in Brazil sliding quite significantly quarter-over-quarter.
Europe sees tepid quarter of VC investment in Q3’24
VC investment in Europe was quiet in Q3’24, in part due to a annual slowdown in dealmaking in August as a result of summer holidays. Overall, during the quarter there were ten $150 million+ megadeals in the region, including a $484 million raise by defense-tech Helsing (Germany), a $386 million raise by gaming company Voodoo (France), a $279 million raise by Isar Aerospace (Germany) and a $220 million raise by UK-based fintech Form3. Space-tech also received investor attention as highlighted by top deals by Isar Aerospace ($279 million) in Germany and D-Orbit ($166 million) in Italy.
VC investment in Asia falls amid ongoing slowdown in China
VC investment in Asia fell for the fifth consecutive quarter, driven by a slowdown in deals activity and the absence of $1 billion+ megadeals within the region. Philippine-based fintech Mynt’s $788 million raise accounted for the largest deal in Asia during Q3’24, followed by a $688 million raise by China-based Baichuan AI, and large raises by two semiconductor manufacturers – China-based ICLeague ($415 million) and Singapore-based Silicon Box ($363 million). The top 5 deals were rounded out by a $360 million raise by India-based quick e-commerce company Zepto.
