APAC sees funding volume fall across venture capital classes

New figures from GlobalData have shown a drop in venture capital (VC) deal volume across the APAC region and all funding ranges in the past year.

There were a total of 3,897 disclosed VC deals that were announced in 2023 in the APAC region, registering a 33.2 per cent decline compared to the 5,833 deals announced the previous year.

GlobalData’s Financial Deals Database also showed that VC deal volume was down across all funding ranges analysed, from $1 million to $1 billion.

The number of high-value VC deals (over $100 million) fell by 37.4 per cent when compared to last year, while low-value deals worth $10 million and below were down by 31.1 per cent and mid-size funding deals (between $10 million and $100 million) dropped by 36.7 per cent.

“Global investor sentiment has been impacted by various factors such as macroeconomic challenges, geopolitical tensions, and market uncertainties. The decline in VC deal volume across all funding size categories, including low value transactions, underscores the vulnerability of the APAC region to these influences,” Aurojyoti Bose, Lead Analyst at GlobalData, said.

Despite the general downturn, lower value funding deals still accounted for 33 per cent of total deal volume and 65 per cent of the number of disclosed deals announced in 2023 in the APAC region; mid-sized VC deals stood at 32 per cent and high-value deals came in at three per cent.