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In the first quarter, deal value for U.S. VC investments hit $36.6 billion across 2,882 deals, down from $51.6 billion across 4,026 deals a year earlier, according to a new report.
The first quarter of 2024 was a relatively calm (or weak if you prefer) quarter for U.S. venture capital investments. Few outsized deals were closed during the quarter, but overall deal count stayed relatively high on a comparative basis, according to a first look at a report by Pitchbook and the National Venture Capital Association.
Quarterly deal value was the lowest quarterly aggregate since 2017, but the lack of outlier deals should be noted, and capital availability remains low, the report said.
On a positive note, data shows that valuations have a slight uptick at the median across several stages. This is likely due to relatively strong performance from public markets and slight multiple expansion, as well as a bias toward fundamentally strong companies’ continued ability to raise capital in the slow venture market, Pitchbook said.
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Investors remain cautious in this environment because of continued uncertainties. Sticky inflation has pushed hope of interest rate cuts to the back half of the year, and recession remains a possibility. The NVCA didn’t expect deal activity to pick up in a meaningful way in the near term.
U.S. exits
The Reddit and Astera Labs IPOs (intial public offerings) were the highlights of the quarter. The two exits combined for 73.4% of the total exit value generated through March.
The prospect of increasing IPO activity created buzz in the market narrative because of how slow exits have been for two years. While both IPOs performed well, and the companies held onto their debut performance, there remains uncertainty as to the prospects moving forward.
Public market performance continues to be dominated by mega-cap tech stocks, and still unproven is investor appetite for high-risk, money losing companies that aren’t able to tell their story through the growth of AI. M&A during the quarter remained extremely …
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In the first quarter, deal value for U.S. VC investments hit $36.6 billion across 2,882 deals, down from $51.6 billion across 4,026 deals a year earlier, according to a new report.
The first quarter of 2024 was a relatively calm (or weak if you prefer) quarter for U.S. venture capital investments. Few outsized deals were closed during the quarter, but overall deal count stayed relatively high on a comparative basis, according to a first look at a report by Pitchbook and the National Venture Capital Association.
Quarterly deal value was the lowest quarterly aggregate since 2017, but the lack of outlier deals should be noted, and capital availability remains low, the report said.
On a positive note, data shows that valuations have a slight uptick at the median across several stages. This is likely due to relatively strong performance from public markets and slight multiple expansion, as well as a bias toward fundamentally strong companies’ continued ability to raise capital in the slow venture market, Pitchbook said.
GB Event
GamesBeat Summit Call for Speakers
We’re thrilled to open our call for speakers to our flagship event, GamesBeat Summit 2024 hosted in Los Angeles, where we will explore the theme of “Resilience and Adaption”.
Apply to speak here
Investors remain cautious in this environment because of continued uncertainties. Sticky inflation has pushed hope of interest rate cuts to the back half of the year, and recession remains a possibility. The NVCA didn’t expect deal activity to pick up in a meaningful way in the near term.
U.S. exits
The Reddit and Astera Labs IPOs (intial public offerings) were the highlights of the quarter. The two exits combined for 73.4% of the total exit value generated through March.
The prospect of increasing IPO activity created buzz in the market narrative because of how slow exits have been for two years. While both IPOs performed well, and the companies held onto their debut performance, there remains uncertainty as to the prospects moving forward.
Public market performance continues to be dominated by mega-cap tech stocks, and still unproven is investor appetite for high-risk, money losing companies that aren’t able to tell their story through the growth of AI. M&A during the quarter remained extremely …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]