Global Venture Investments Hit Six-Year Low in 2023

Despite an overall decline, AI startups saw increased funding while gaming and Web3 sectors experienced significant drops.

Global venture investments declined by 42% to $248.4 billion in 2023, the lowest level since 2017, with the number of deals also falling by 30% to 29,303.
Investment in gaming startups hit a multiyear low in 2023, with funding down 79% from the previous year, and U.S. investment in the sector falling by 86%.
Despite the overall decline, AI startups saw an increase in funding, reaching close to $50 billion in 2023, up 9% from the previous year.
Web3, which experienced a surge in 2021 and 2022, saw funding fall 73% year over year in 2023, from $28 billion to $7.6 billion.
Venture capital investors are expected to continue to be cautious in 2024, with a potential increase in company closures predicted.