VC deals

VC deals in APAC fell 27.9% across all funding rounds in 2023

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Hyderabad: In line with the global trends, the Asia-Pacific (APAC) region saw a notable decline in the number of venture capital (VC) deals with disclosed funding rounds announced in 2023 compared to 2022. VC deal volume decreased across all funding rounds, revealed GlobalData, a leading data and analytics company.

In 2023, a total 3,897 venture capital (VC) deals with disclosed funding value were announced in the APAC region. However, the region saw a 33.2% decline compared to the announcement of 5,833 VC deals during 2022.

The global deal activity remained subdued in 2023. Key markets including the US, China, India and the UK saw a decline in VC funding deal volume and value last year.

Total 4,674 VC deals with disclosed funding rounds were announced during 2023, which is a year-on-year (YoY) decline of 27.9% compared to the 6,483 VC deals announced in 2022, revealed the analysis of GlobalData’s Deals Database.

The number of early-stage VC funding rounds (Seed and Series A funding rounds) saw a YoY decline of 26.9% from 4,811 to 3,517. Similarly, the number of growth, expansion and late-stage funding rounds (Series B onwards) declined by 30.8% from 1,672 in 2022 to 1,157 in 2023.

“This is another similarity with the global trend wherein the APAC region experiencing a relatively higher decline in volume for growth, expansion and late-stage funding rounds compared to the early-stage funding rounds,” said Aurojyoti Bose, GlobalData’s Lead Analyst.

Early-stage funding rounds accounted for 75.2% of the total number of VC deals with disclosed funding rounds announced in the APAC region during 2023. Meanwhile, the share of growth, expansion and late-stage funding rounds stood at 24.8% during the year.

“In an ever-changing VC landscape, the decline in late-stage funding rounds across APAC reflects a cautious investor sentiment. However, it also presents an opportunity for early-stage startups to shine, demonstrating their agility and potential to disrupt industries,” concluded Bose.

Interestingly, the US witnessed the announcement of 198 high-value VC deals worth $48.4 billion during 2023, whereas China, the top market in the APAC region, announced 86 high-value VC deals worth $23.4 billion. However, the APAC region was home to five of the top 10 countries by high-value deal volume in 2023.

Among the top 10 countries, three countries were from Europe and two countries were from the North American region. The UK occupied the third position followed by India, Germany, France, South Korea, Singapore, Canada and Indonesia.

(Image credit – Adobe Stock)