Source: GlobalData
Low-value deals dominate global VC funding landscape in 2024, reveals GlobalData
Posted in Business Fundamentals
A total of 12,163 venture capital (VC) funding deals with disclosed funding value were announced during 2024. Among VC deals with different funding size ranges, low-value deals* experienced a fall in numbers, while high-value deals (valued more than $100 million) registered growth in volume. However, despite the decline, low-value deals continued to dominate and accounted for the largest chunk of VC deals volume in 2024, according to GlobalData, a leading data and analytics company.
An analysis of GlobalData’s Deals Database reveals that the number of low-value VC deals declined by 23.7% from 10,510 in 2023 to 8,020 deals in 2024. In contrast, the volume of high-value VC deals increased by 24.9% from 337 in 2023 to 421 in 2024. Overall, the volume of VC funding deals declined by 18.4% last year compared to the announcement of 14,902 VC deals with disclosed venture funding value during the previous year.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “The mixed trend observed in the volume of high-value VC deals and low-value deals indicates the prioritization of quality over quantity by the investors . During the year, VC firms seem to have placed a good number of big bets in start-ups they perceived to be promising enough for solid returns. It is also evident from the fact that the number of billion-dollar deals also increased in 2024 compared to the previous year.”
The number of VC deals valued more than $1 billion increased from seven in 2023 to 13 in 2024.
Low-value deals* accounted for a 65.9% share of the total number of VC deals with disclosed funding value announced globally during 2024. This was a decline compared to the 70.5% share in 2023.
Meanwhile, high-value VC deals occupied 3.5% share of the total number of VC deals with disclosed funding value announced globally during 2024, which is an increase from the previous year’s share of 2.3%.
Mid-size VC funding deals (valued >$10 million and ≤$100 million) volume declined by 8.2% from 4,055 deals in 2023 to 3,722 deals in 2024. These deals accounted for a 30.6% share of the total number of VC deals with disclosed funding value announced globally during 2024.
*Investment value less than or equal to $10 million