Factors such as fear of recession and inflation appear to be taking a toll on investor sentiments in the US, with October being the first month of 2022 where the total venture capital (VC) funding raised by US-based startups fell below $10 billion, reveals GlobalData, a leading data and analytics company.

An analysis of GlobalData’s Financial Deals Database reveals that VC funding value nosedived by 39.9% to $8.1 billion in October, while deal volume also fell by 37.9% compared to the previous month.

Meanwhile, the total number of VC funding deals announced during January to October 2022 was 8,878, while the corresponding disclosed funding value stood at $169.5 billion.

Aurojyoti Bose, Lead Analyst at GlobalData, comments: “Investor sentiments have suffered a major setback in several markets globally and VC funding activity in the US has also showcased a fluctuating month-on-month trend during 2022. However, the US continues to be favored by investors as the country’s VC funding value and volume during January to October 2022 was the highest among all the countries globally.”

Some of the notable VC funding deals announced in the US during October 2022 included $450 million funding raised by Form Energy, $200 million raised by Automation Anywhere and $200 million raised by Ascend Elements.