Venture capital (VC) funding activity in the US is reeling under the impact of volatile market conditions and subsequently the total value of these deals fell below $10 billion in January 2023. A total of 498 VC funding deals were announced in the US during the month while the disclosed funding value of these deals stood at $5.9 billion, according to GlobalData, a leading data and analytics company.

Aurojyoti Bose, Lead Analyst at GlobalData, comments: “There was a month-on-month (MoM) as well as Year-on-Year (YoY) decline in VC deal activity in January 2023 while the impact was more prominent in terms of value.”

An analysis of GlobalData’s Financial Deals Database reveals that VC deals volume in the US declined by 24.2% and 57.8% in January 2023 compared to the previous month and January 2022, respectively. Meanwhile, the MoM and YoY decline in value terms stood at 55.3% and 76.8%, respectively.

Bose adds: “The massive decline in funding value is indicative of the fact that VC investors have become extremely cautious towards committing big-ticket investments due to volatile conditions.”

Despite the decline, the US continued to account for the highest share of VC funding deals volume and value. The US held 35.3% share of the total number of VC deals announced globally in January 2023 while its share of value stood at 42.3%.

Some of the notable VC funding deals announced in the US during January 2023 include $203 million worth of funding raised by Paradigm Health, $175 million funding raised by Asimov, $150 million funding raised by Colossal Biosciences and $120 million worth of funding raised by Boston Metal.

Note: Historic data may change in case some deals get added to previous months because of a delay in disclosure of information in the public domain.