Global Venture Funding In November Slows At Early Stage

Global venture funding reached $19.2 billion in November 2023, down marginally month over month, Crunchbase data shows. Funding fell around 16% from the $23 billion invested in November 2022, which was already down by two-thirds from November 2021. 

Early-stage funding declined the most year over year — falling 34% — an indication that venture investors continue to scale back even when investing in younger startups. Seed funding slowed more than 15%. 

In contrast, late-stage funding increased by around 7% compared to November 2022. 

All told, venture funding to U.S. companies in November reached close to $9 billion — slightly less than 50% of total global funding.

Health care and financial services companies raised the largest amounts last month, with more than $3 billion invested in each of those sectors. 

Artificial intelligence companies raised $2.4 billion in total in November. The biggest fundings went to companies in the AI infrastructure sector: Germany-based Aleph Alpha and Silicon Valley-based Together AI.  

The creation and destruction of value were on full display last month. 

The trial of Sam Bankman-Fried delivered a guilty verdict on Nov. 2, a year after the collapse of FTX, the cryptocurrency exchange he founded, which at its peak in early 2022 was valued at $32 billion. 

OpenAI also faced what looked like an existential threat with the  firing of Sam Altman and more than 90% of employees threatening to quit. That threat ultimately didn’t come to pass, as Altman was rehired within a week. OpenAI was most recently valued at $29 billion earlier this year, with a secondary offering in the works for employees that is expected to place the value of the company at around $80 billion. 

Other large valuations in November included Blockchain.com raising funding at a $7 billion valuation, half of its previous valuation. Israeli-based Next Insurance raised strategic capital at a flat valuation from its 2021 funding at around $4 billion —  viewed as an indication of strength in this funding environment. 

M&A activity picked up last month. Pet care marketplace Rover agreed to be acquired by Blackstone Group for $2.3 billion. Rover went public via a SPAC merger in 2021 at a value of $1.4 billion. 

Palo Alto Networks also said it intends to acquire Israel-based cybersecurity company Talon Cyber Security for $625 million. 

Methodology

The data contained in this report comes directly from Crunchbase, and is based on reported data. Data reported is as of Dec. 3, 2023.

Note that data lags are most pronounced at the earliest stages of venture activity, with seed funding amounts increasing significantly after the end of a quarter/year.

Please note that all funding values are given in U.S. dollars unless otherwise noted. Crunchbase converts foreign currencies to U.S. dollars at the prevailing spot rate from the date funding rounds, acquisitions, IPOs and other financial events are reported. Even if those events were added to Crunchbase long after the event was announced, foreign currency transactions are converted at the historic spot price.

Glossary of funding terms

As of January 2023, we have made a change to how we include corporate funding rounds in our reporting. Corporate rounds are only included if a company has raised an equity funding at seed through a venture series funding round. 

Seed and angel consists of seed, pre-seed and angel rounds. Crunchbase also includes venture rounds of unknown series, equity crowdfunding and convertible notes at $3 million (USD or as-converted USD equivalent) or less.

Early-stage consists of Series A and Series B rounds, as well as other round types. Crunchbase includes venture rounds of unknown series, corporate venture and other rounds above $3 million, and those less than or equal to $15 million.

Late-stage consists of Series C, Series D, Series E and later-lettered venture rounds following the “Series [Letter]” naming convention. Also included are venture rounds of unknown series, corporate venture and other rounds above $15 million.

Technology growth is a private-equity round raised by a company that has previously raised a “venture” round. (So basically, any round from the previously defined stages.)

Illustration: Dom Guzman