US and China dominate global high value VC funding deals volume with 70% share in 2023

US and China dominate global high value VC funding deals volume with 70% share in 2023

Global deal activity, encompassing venture capital (VC) funding, remained subdued in 2023. Key markets such as the US, China, India and the UK also registered decline in VC funding deal volume and value. However, despite suffering setbacks, the US continued to account for the highest share of high value* VC deals in 2023 followed by China. These two countries collectively accounted for 70% of the total number of high value VC deals announced globally in 2023, reveals GlobalData, a leading data and analytics company.

Aurojyoti Bose, Lead Analyst at GlobalData, comments: “Although there was a dent in investor sentiment globally owing to macroeconomic challenges, inflation, interest hikes, ongoing conflict and geopolitical tensions, countries with conducive startup ecosystems such as the US continue to remain attractive investment destinations. VC firms have become cautious but not averse to placing big bets in promising startups from these countries.”

An analysis of GlobalData’s Deals Database reveals that while the US accounted for 49% share, China held 21% share of high value VC deals volume in 2023. These markets were also dominant in terms of corresponding deal value with 50% and 24% share, respectively.

The US witnessed the announcement of 198 high value VC deals of worth $48.4 billion during 2023, whereas China, the top market in the Asia-Pacific (APAC) region, saw the announcement of 86 high value VC deals of worth $23.4 billion.

Bose adds: “Interestingly, the APAC region was home to five of the top 10 countries by high value deals volume in 2023.”

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

Bose concludes: “The significance of these top 10 countries in the global startup ecosystem can be understood from the fact that they collectively accounted for more than 90% of the total number of high value VC deals announced globally as well as the corresponding value in 2023.”

*Value more than or equal to $100 million