GlobalData: VC funding for U.S.-based startups plunges 32.9%

Total venture capital value totals $160.1 for first three quarters of 2022

A total of 8,142 venture capital (VC) funding deals were announced in the U.S. during the first three quarters of 2022, and the disclosed funding value of these deals stood at $160.1 billion, which is a 22.9% decline in deals volume and 32.9% decline in funding value compared to the same period last year, according to GlobalData, a leading data and insights company.

However, an analysis of GlobalData’s Financial Deals Database revealed that September 2022 showcased improvement in terms of U.S. VC capital value. Apart from recording the first billion-dollar deal ($1 billion funding raised by Terawatt Infrastructure) in September 2022, the U.S.-based startups also attracted some other big-ticket investments that included $450 million funding raised by Ziply Fiber, $315 million by Pie Insurance, $310 million funding raised by Gotham Greens and $300 million by Acelyrin. As a result, there was an improvement in VC funding value in September.

The month-on-month declining trend, which had brought down the VC funding value in the U.S. to below $10 billion in August 2022, was reversed in September with total funding value increasing by 19.3% to $11.9 billion despite a drop in deals volume by 13.1% compared to the previous month.

“Although the US saw a year-on-year decline in VC funding activity during Q1-Q3 2022, the growth in funding value in September 2022 and announcement of a billion-dollar deal during the month suggest that despite their cautiousness, VC investors still see it as their preferred investment destination,” said Aurojyoti Bose, lead analyst at GlobalData. “In fact, the U.S.was the only market to see a billion-dollar deal in September, while several other key markets including China experienced a fall in capital raising.”