VC funding in April declined to second lowest amount in almost a year
On a Year-over-Year basis, seed funding was down more than 50 percent, early-stage funding dropped 48 percent, and late-stage funding was down the most at 62 percent.
Crunchbase News reports that venture investors continued to scale back in April 2023.
Global funding reached $21 billion, down 56 percent from $47.8 billion in a Year-over-Year (YoY) comparison. This is the second-lowest amount recorded in a single month since July 2022 when venture capital started to scale below $30 billion.
The slowdown has impacted all funding stages. On a YoY basis, seed was down more than 50 percent, while early-stage funding dropped 48 percent, and late-stage funding was down the most at 62 percent. Month-over-month funding amounts were also down.
By sector, healthcare raised the largest amount with close to $5.7 billion invested. Those in artificial intelligence raised around $2.8 billion, close to 13 percent of funding in April, while financial services companies raised just over $2.7 billion, down from $7.7 billion raised in the same month a year ago.