Although global venture capital (VC) funding activity significantly slowed down after reaching a peak in 2021, companies and startups still raised close to $550-billion over the past two years, pushing the five-year total to impressive highs.
According to data presented by Stocklytics.com, VC investors have injected more than $2-trillion into companies across sectors and industries over the past five years.
The past two years of global economic headwinds have significantly reshaped venture capital investing, slashing the total value of deals by nearly 50% since the record-breaking $548,7-billion raised in 2021. Although 2024 marked a modest rebound following a decline in 2022 and 2023, the VC market remains a mix of caution and opportunity.
Sectors like tech, AI, healthcare, and biotech have seen strong momentum in the first half of 2024, but overall, investors are treading carefully. According to Statista, total deal value rose by 7% this year and hit $280-billion, with only a slight growth forecast of 2,3% for 2025, far from the heights of recent years.
Despite the apparent slowdown, the market still hit over $2-trillion in deals closed over the past five years. This impressive amount of money came from approximately 250 000 deals, with most focused on seed and early-stage funding.
In global comparison, the US is the undisputed leader, attracting over half of the total VC funding, an impressive $1,05-trillion. In second place, Chinese companies and startups secured nearly $500-billion, showing the country’s strong presence in the global VC ecosystem. Singapore, the third-largest VC funding market, has seen much less fresh capital, or $81,2-billion, since 2019.
Statista forecasts that global VC funding will reach $286,2-billion in 2025, only $6.,5-billion more than this year, marking the slowest year-over-year growth in recent history. Statistics show the US market will grow by a modest 2,9% and hit a $140,4-billion value. Europe and Asia follow with 2,3% and 1,3% growth rates and $19,2-billion and $104,7-billion market values, respectively.