Global VC Funding Plunges in Q2 Despite Increased AI Investment

Global venture capital funding decreased by nearly 50% in the first half of 2023 compared to the same period last year, reaching $173.9 billion.
Deal numbers also declined by 19% as investors became more cautious in an environment of higher interest rates, lack of IPOs, and limited exit opportunities.
AI startups received over $40 billion in funding, including a $10 billion investment in OpenAI by Microsoft, making AI one of the few bright spots.
The U.S. and Europe saw funding drop by 65% and 69% respectively, while Latin America experienced an 86% decline in funding.
Despite the frenzy around AI, overall VC funding could not offset major decreases across other sectors like crypto which fell for the fifth straight quarter.