The value of venture capital (VC) deals in the US fell 51% year-on-year (YoY) in the first four months of 2023 amid looming economic challenges, said London-based data and analytics company GlobalData.

The disclosed funding value stood at $45.6 billion during the period.

The total number of deals stood at 2,577 in the first four months of the current year, down 44.3% YoY.

“Economic uncertainties followed by increased interest rates and market volatility have been making VC investors adopt a conservative approach. Resultantly, there has been a subdued VC funding activity across most of the key markets and the US is not an exception,” said Aurojyoti Bose, Lead Analyst at GlobalData. 

Despite the drop, the US retained its attractiveness and continued its dominance in the global VC funding landscape, accounting for 36.9% of the total number of VC deals announced globally from January to April 2023 and 53.6% of the corresponding deal value.

The notable VC deals include $6.5 billion raised by Stripe, $500 million by Rippling, $500 million by Sandbox AQ and $350 million by Adept.

(Editing by Seban Scaria)