KPMG Report: "Global VC Investment at Lowest Level in the Past 8 Years"

Lowest level since Q2 2016 by number of cases
Smallest scale since Q2 2019
Exit size also shrinking... Future US IPO market is key

The number of global venture capital (VC) investments in the first quarter of this year was the lowest since the second quarter of 2016.

According to the ‘2024 Q1 VC Investment Trends (Venture Pulse Q1'24)’ report published on the 25th by global accounting and consulting firm KPMG, VC investments in the first quarter of 2024 totaled 7,520 deals worth $75.9 billion. This represents a slight decrease compared to the previous quarter (9,458 deals, $83.8 billion). The investment amount was the smallest since the second quarter of 2019, and the number of deals was the lowest in eight years.

VC investments in the first quarter decreased in both the Americas (3,205 deals, $38.2 billion) and the Asia-Pacific region (2,305 deals, $18.9 billion) compared to the previous quarter. In contrast, Europe saw an increase (1,798 deals, $17.9 billion). The report explained that "European VC investment growth was driven by Sweden-based infrastructure company H2 Green Steel successfully raising $5.2 billion." VC investments in the Asia-Pacific region hit their lowest point since the first quarter of 2017.

Global corporate venture capital (CVC) investments declined from $40.8 billion in Q4 2023 to $37.3 billion in Q1 2024. In the Americas, however, the amount increased from $18.7 billion to $20.1 billion during the same period. The global VC exit value dropped from $49.8 billion in Q4 2023 to $30.7 billion in Q1 2024, marking the lowest level since Q4 2016.

In the AI sector, U.S. large language model (LLM) company Anthropic raised $4 billion, Chinese large language model company YuiZhiAnMian secured $1 billion, and U.S. AI-based robotics company Figure AI attracted $675 million in investments.

The report emphasized the importance of watching the U.S. initial public offering (IPO) market in Q2 2024, stating, "Although global VC investment is sluggish, if successful IPOs occur in the rising stock markets, it could ease the funding crunch faced by VC firms."

Jung Do-young, partner at Samjong KPMG, added, “Despite uncertainties, major companies continue to pursue venture investments in AI, robotics, healthcare, bio, and cleantech to secure sustainable growth engines.”