US, China account for around 70% of high-value VC deals volume, value in H1 2023

The US and China maintained their status as the preferred investment destinations for venture capital (VC) firms in the first half (H1) of 2023. Together, they accounted for a staggering 70% of the volume and value of high-value VC deals (≥$100m) announced globally during this period, reveals GlobalData, a leading data and analytics company.

An analysis of GlobalData’s Financial Deals Database reveals that 69.5% and 76.6% of high-value VC deals volume and value remained concentrated only in the US and China.

Aurojyoti Bose, Lead Analyst at GlobalData, comments: “VC funding activity has taken a hit globally due to dent in investor sentiments amid challenging market conditions and the US is not an exception to this. However, it did not alter the US’ dominance in global VC funding landscape. In fact, the US outpaced its peers by a significant margin. It alone accounted for more than half of these high-value VC deals volume and value in H1 2023.”

The US’ share of high-value VC deals volume announced globally during H1 2023 stood at 50.2% while accounting for 58.7% of the corresponding deal value.

Bose adds: “Akin to other key markets, although China’s startup ecosystem is experiencing funding crunch. However, China still continues to be a highly preferred investment destination for VC firms and stands just next to the US in terms of high-value VC deals volume and value.”

China accounted for 19.3% of the total number of high-value VC deals announced globally during H1 2023, whereas its share of corresponding deal value stood at 17.9%.

The UK occupied the third position in terms of high-value VC funding deals volume in H1 2023 followed by Germany, India, France, Singapore, South Korea, Canada, and Switzerland.

Bose concludes: "The data from H1 2023 clearly underscores the enduring appeal of the US and China as the powerhouses of the global VC funding landscape despite the prevailing market challenges. As investors navigate uncertainties, these two markets are expected to play a pivotal role in shaping the future of VC investments."