Deals
Venture Capital Deals Set for Worst Drop in Over Two Decades
- Drastic investment contraction has reset global startup scene
- US and China have both seen a drought of fresh deal-making
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Venture capital investments are on track for the sharpest drop in more than two decades this year, surpassing the declines of the dot-com crash and the financial crisis amid rising interest rates, macroeconomic uncertainties and a public market downturn.
The value of new VC deals globally is down 42% in the first 11 months of this year compared to last, to $286 billion, according to research firm Preqin. That’s the deepest slump the researchers have recorded yet, surpassing the nadirs of the early 2000s and the 34% collapse after the 2008 financial crisis.