US venture investors invested $37.5 billion in 2,794 deals in the third quarter of 2024, according to the latest PitchBook-NVCA Venture Monitor report. The number of transactions is 34% lower than the previous quarter and 17% lower than the same period last year.
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The dollar figure was down 32% from the second quarter, despite several major AI rounds, and was 11.7% below the average dollar volume over the previous eight quarters (i.e., the post-pandemic period ), Axios writes, citing the report.
The number of active investors is down more than 25% compared to last year. And 2024 will be the second consecutive year in which the volume of venture capital investments attracted will be less than half the volume of 2021 or 2022.
Experts attribute the decline in venture capital activity in new deals to the lack of a stock market listing. PitchBook analysts also note that payments to limited partners have reached rock bottom levels (they call the current situation a “dead end”).
The president of the National Venture Capital Association, Bobby Franklin, believes the problem lies with regulators:
“As this quarter’s data shows, the FTC’s obsession with mergers and acquisitions continues to disrupt the business ecosystem.”
Basically, startups have no way to get support from big companies and it’s harder for venture capitalists to invest in innovative new ideas.
You can read about the state of the Russian venture capital market in the third quarter of 2024 in a recent analytical report by RB.RU.
Author:
Ekaterina Alipova
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
