Key Takeaways
- • Global venture capital transaction value declined 25.7% year-over-year in December 2023 to $19.35 billion, marking the lowest monthly total since at least 2020, according to S&P Global Market Intelligence.
- • Deal count fell 48.2% to 965 transactions in December 2023, the weakest volume for any December on record within the available data period.
- • Full-year 2023 venture capital funding totaled $260 billion—a 40.3% contraction from $435.72 billion in 2022—with deal volume declining 31.9% to 15,834 transactions.
- • Technology, media and telecommunications companies captured 43.2% of December 2023 venture investments, followed by healthcare (17.2%), financials (9.9%), and industrials (9.3%).
- • European companies dominated the largest funding rounds, with Visma AS securing $3.3 billion (the largest round) from HgCapital LLP alongside Intermediate Capital Group and TPG Capital, while China Resources Pharmaceutical Commercial Group raised $882.8 million.
Summary
Global venture capital markets continued their downward trajectory through the close of 2023, with both deal value and transaction volume reaching their lowest levels in years. December 2023 represented a particularly weak month, with transaction value falling to $19.35 billion—a 25.7% decline from the same month in 2022 and the lowest figure for any December since at least 2020, according to S&P Global Market Intelligence data. The contraction in deal activity was even more pronounced, with transaction count plummeting 48.2% to just 965 deals, also marking the weakest December on record within available datasets.
The full-year 2023 picture reflects a substantial correction in the venture capital landscape. Annual funding totaled $260 billion, representing a 40.3% decline from 2022's $435.72 billion. Deal volume for the year amounted to 15,834 transactions, down 31.9% from 23,251 in the prior year. This represents a significant contraction in both the size and frequency of venture investments, signaling reduced capital deployment appetite across institutional investor bases.
Sector performance in December 2023 remained concentrated among traditional leaders. Technology, media and telecommunications companies captured the largest share at 43.2% of total venture investments, substantially ahead of other sectors. Healthcare followed with 17.2% of funding, while financials and industrials respectively accounted for 9.9% and 9.3%. Geographic and company-level results showed that European companies secured prominence in large-scale transactions. Application software firm Visma AS led all December funding rounds with a $3.3 billion raise, in which HgCapital LLP acquired a majority stake alongside participation from existing investors Intermediate Capital Group and TPG Capital. Healthcare distributor China Resources Pharmaceutical Commercial Group raised $882.8 million with a syndicate including Beijing Pharmaceutical Group and five Chinese financial asset investors (ABC Financial, BOC Financial, CCB Financial, ICBC Financial, and PICC Capital).
The full-year 2023 picture reflects a substantial correction in the venture capital landscape. Annual funding totaled $260 billion, representing a 40.3% decline from 2022's $435.72 billion. Deal volume for the year amounted to 15,834 transactions, down 31.9% from 23,251 in the prior year. This represents a significant contraction in both the size and frequency of venture investments, signaling reduced capital deployment appetite across institutional investor bases.
Sector performance in December 2023 remained concentrated among traditional leaders. Technology, media and telecommunications companies captured the largest share at 43.2% of total venture investments, substantially ahead of other sectors. Healthcare followed with 17.2% of funding, while financials and industrials respectively accounted for 9.9% and 9.3%. Geographic and company-level results showed that European companies secured prominence in large-scale transactions. Application software firm Visma AS led all December funding rounds with a $3.3 billion raise, in which HgCapital LLP acquired a majority stake alongside participation from existing investors Intermediate Capital Group and TPG Capital. Healthcare distributor China Resources Pharmaceutical Commercial Group raised $882.8 million with a syndicate including Beijing Pharmaceutical Group and five Chinese financial asset investors (ABC Financial, BOC Financial, CCB Financial, ICBC Financial, and PICC Capital).
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