SME Times is powered by   
Search News
Just in:   • EAM Jaishankar dials counterparts in Asia and Europe, discusses strikes on Pak-based terror camps  • Iran rejects report of proposing direct talks with US  • Singapore issues travel advisory asking citizens to avoid J&K, Pak  • US: Two injured, suspect dead after shooting at Florida pharmacy store  • 430 flights cancelled, 27 airports to remain shut till May 10 
Last updated: 03 May, 2023  

startup.9.thmb.jpg 'Promising startups still have reason to cheer amid funding winter'

startup.9.jpg
   Top Stories
» Sensex, Nifty open nearly flat as geopolitical tensions continue
» Sensex, Nifty gain in early trade as India carries out ‘Operation Sindoor’
» India, UK finalised free trade deal, says PM Modi
» Moody’s pegs India’s GDP growth at 6.3 per cent for 2025
» Nifty, Sensex open higher; Adani Ports among top gainers
IANS | 03 May, 2023
As global VC deals took a major hit in the first quarter of this year, investors are still willing to place big bets on promising startups despite the overall decline in deal activity, a new report showed on Wednesday.

A total of 4,143 VC funding deals with disclosed funding value were announced globally in Q1 2023, which is a decline of 42.1 per cent compared to the 7,158 announced deals during Q1 2022, according to GlobalData.

The number of low-value VC deals (investment less than or equal to $10 million) announced globally witnessed a decline of 36.9 per cent from 4,685 in Q1 2022 to 2,954 in Q1 2023.

Meanwhile, the number of VC deals valued more than $100 million decreased by a massive 75.1 per cent from 321 in Q1 2022 to 80 in Q1 2023.

"Although the number of big-ticket deals is not too high, their comeback during the quarter despite the challenging market conditions is a reason to cheer for promising startups," said Aurojyoti Bose, lead analyst at GlobalData.

The impact in Q1 was more prominent for high-value transactions. This indicates a potential shift in the VC landscape, as investors become more cautious and selective with their investments, revealed GlobalData, a leading data and analytics company.

"High-value transactions were impacted as VC investors remained cautious for committing big investments over the prevailing geopolitical conditions, macroeconomic challenges and recession fears," said Bose.

Despite the decline, low value deals continued to dominate the VC funding landscape by registering the highest number of VC deals announced in this range globally during Q1 2023.

The share of low value deals as a percentage of the total VC deals volume with disclosed funding value stood at 71.3 per cent in Q1.

Meanwhile, VC deals valued at more than $1 billion, which were non-existent in Q1 2022, made a comeback in Q1 2023. The quarter saw the announcement of two VC deals valued at more than $1 billion, said the report.
 
Print the Page
Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
84.35
82.60
UK Pound
106.35
102.90
Euro
92.50
89.35
Japanese Yen 55.05 53.40
As on 12 Oct, 2024
  Daily Poll
Do you think Indian businesses will be negatively affected by Trump's America First Policy?
 Yes
 No
 Can't Say
  Commented Stories
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter