Shulou(Shulou.com)11/24 Report--

CTOnews.com, July 6 (Xinhua)-- Global venture capital funding almost halved in the first six months of 2023, according to recent data released by research firm PitchBook, highlighting a lack of investor enthusiasm and a sharp rise in interest rates.

Despite the huge interest in artificial intelligence (AI) startups generated by OpenAI's ChatGPT success, global venture capital fell 48% to $173.9 billion in the first half of the year (CTOnews.com Note: about 1.26 trillion yuan currently), while the number of deals fell 19%, according to the report.

▲ source Pexels, however, AI startups are still hot. Over the past six months, global venture capitalists have invested more than $40 billion (currently about 290 billion yuan) in AI startups, including Microsoft's $10 billion investment in OpenAI (currently about 72.5 billion yuan) and $1.3 billion in Inflection AI (currently about 9.425 billion yuan).

By region, Latin America had the biggest decline of 86 per cent in the first half, while venture capital in the US and Europe fell 65 per cent and 69 per cent, respectively. Some investors say that in addition to the rise in interest rates leading to a reconsideration of corporate valuations, the reduction in IPO and the lack of other exit channels have also made investors more picky and cautious.

PitchBook said that large investors were not actively involved in venture capital and that very large deals that pushed the value of deals to record levels were no longer happening. In 2021, global venture capital reached an annual record of $745.1 billion (currently about 5.4 trillion yuan).

Some investors say many companies that received funding in 2021 are still sitting on a lot of money and do not feel the need to return to a market where valuations have fallen sharply. But they added that demand was likely to pick up moderately in the second half of the year.

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