Venture capitalist (VC) funding in the US fell by nearly half year-on-year to $39.8 billion in the second quarter of 2023, according to Washington-based research firm PitchBook.

The number of deals dropped almost 33% year-on-year to 3,011, Bloomberg reported, citing PitchBook data.

The most significant decline was in angel or seed deals - financing for startups still at the concept stage - sinking by nearly half in the second quarter year-on-year.

Nevertheless, funding for larger startups was relatively easy, as VCs funded 210 deals in the quarter, up from 196 a year earlier.

Globally, startups raised $87.4 billion in Q2 2023, down from $152.9 billion a year earlier. The quarter saw 10,571 deals, compared to 12,696 in the same quarter last year.

However, a PitchBook spokeswoman said the numbers don’t include the $10 billion funding round for OpenAI, as it was a corporate investment that amounted to a near-majority stake.

(Editing by Seban Scaria