{"id":44674,"date":"2023-04-08T11:34:53","date_gmt":"2023-04-08T15:34:53","guid":{"rendered":"https:\/\/sciencebusiness.technewslit.com\/?p=44674"},"modified":"2023-04-08T11:34:53","modified_gmt":"2023-04-08T15:34:53","slug":"infographic-q1-2023-venture-funds-hunker-down","status":"publish","type":"post","link":"https:\/\/technewslit.com\/sciencebusiness\/?p=44674","title":{"rendered":"Infographic – Q1 2023 Venture Funds Hunker Down"},"content":{"rendered":"
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Click on image for full-size view (Crunchbase)<\/figcaption><\/figure>\n

8 Apr. 2023. While venture investment dollars worldwide edged higher in the first three months of 2023, the number of deals continued to slide from the previous quarter. Crunchbase News<\/a> says this week global venture capital from January through March 2023 remained largely in a holding pattern, with only investments in artificial intelligence start-ups showing a glimmer of greater investor interest.<\/p>\n

In the first quarter, venture investors placed $75.7 billion in new technology companies worldwide, a gain of 1 percent from the 74.8 billion invested in the previous three months, but that’s a drop of 53 percent from the first quarter of 2022. Throughout 2022 investment dollar totals declined each quarter from the all-time high of $183.5 billion in the fourth quarter of 2021. In an historical context<\/a>, the nearly $76 billion invested in Q1 2023 is comparable to the global investment total in Q1 2020, before the Covid-19 pandemic took hold.<\/p>\n

The number of global venture deals, however, continued to decline in the first quarter to 5,959 from 6,986 in the previous three months, a drop of 15 percent, and 55 percent lower than 10,843 transactions in the first quarter of 2022. A majority of venture deals in Q1 2023, 64 percent, went to seed and angel-stage investments for companies in their earliest stages, a slight decline from the two-thirds (66%) in Q4 2022.<\/p>\n

Yet venture investors continue to raise funds for the future. Crunchbase News reports investors still hold $580 billion in their accounts, according to industry estimates, despite the slow funding deployment. Plus, start-ups developing artificial intelligence applications appeared to generate investor interest. Crunchbase says A.I.-related investments accounted for nearly one in five of investment dollars in Q1 2023. Although a large chunk of that total was Microsoft’s $10 billion investment in OpenAI<\/a>, other A.I. start-ups received substantial venture funding, including $500 million for Sandbox AQ, developer of quantum computing and A.I. systems, reported by Science & Enterprise in Feb. 2023<\/a>.<\/p>\n

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