October DealsAmazon USOctober deal check: compare before you payAmazon US: current deals, useful picks and tech finds.Check DealsClean PCRecommendedOne scan can reveal what keeps slowing WindowsLook for cleanup and repair opportunities.Run ScanOctober DealsAmazon USDeal season is back - check today's better picksAmazon US: current deals, useful picks and tech finds.See Picks×
Skip to content
The Finance Base
The Money Desk · Blog
Re:

U.S. Q1 2024 Venture Capital Investment Fell 29% to $36.6 Billion

U.S. venture capital investment totaled $36.6 billion across 3,925 deals in Q1 2024, down 29.0% year over year, according to the PitchBook–NVCA Venture Monitor. Here is what the figure measures, how stages differ, and why deal counts vary by publisher.
From TheFinanceBase Team4 min to read

What’s actually slowing this PC down?

Pick the symptom - the matching free tool is one click away.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

U.S. venture capital investment totaled $36.6 billion across 3,925 deals in the first quarter of 2024, according to the PitchBook–NVCA Venture Monitor. PitchBook reports that deal value fell 29.0% compared with the same quarter of 2023. The data cutoff is March 31, 2024, so these figures describe that quarter only. They do not describe the venture market as it stands today.

What the $36.6 billion figure measures

The headline number comes from one publication and one comparison, so it helps to pin down each part before using it.

  • Geography: United States only. The report does not cover global venture activity.
  • Measure: Investment dollars, meaning capital that venture investors put into companies during the quarter. It is not a count of companies funded, and it is not money raised by venture funds.
  • Period: The first quarter of 2024, with data as of March 31, 2024.
  • Comparison: Year over year, against Q1 2023. PitchBook describes the change as a 29.0% decline in deal value.
  • Publisher: PitchBook and the National Venture Capital Association (NVCA), in the PitchBook–NVCA Venture Monitor. NVCA’s official publication entry dates the report April 11, 2024.

The comparison base matters. Q1 2023 was an unusually large quarter, so a 29% drop from that level is a steep headline, but it is not the same as a collapse from a typical quarter.

Why investment fell: a defensive market, not an empty one

NVCA President and CEO Bobby Franklin opened the report’s foreword with this line: “The first quarter of 2024 did not start on a high note for the US venture capital community.”

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

The report’s explanation is that capital was available in aggregate, but investors slowed new activity and focused on companies already in their portfolios. Its model estimates well over $300 billion of venture dry powder, meaning committed capital not yet invested. It also estimates a demand-to-supply ratio near 2.0x across stages. These are the report’s own estimates from its model, not audited totals, and they should be read as such.

The ratio is the key to reading the report’s conclusion. A ratio above 1.0x means companies and deals sought more capital than investors were providing. The report does not say the ecosystem had run out of money. It describes a market in which investors were choosing where to deploy capital more selectively.

Stage by stage, the aggregate hides large differences

A single total blends very different parts of the market. The table below uses the stage categories and values from the PitchBook–NVCA report. Cells marked “not stated” are figures the cited summary does not give, so they should not be inferred from the total.

Stage Q1 2024 deal value Change versus prior year Notable detail
Pre-seed/seed $2.6 billion Down 39.0% Sharpest decline of the stages with a stated change
Early-stage $10.2 billion Not stated Largest stage value reported
Late-stage Not stated Down 17.0% versus Q1 2023 Dollar value not given in the cited summary
Venture-growth $4.7 billion Not stated Demand/supply ratio of 2.2x; investors provided $1.00 for every $2.20 needed

The venture-growth stage shows the widest gap between what companies sought and what investors supplied. The early-stage figure is the largest in the table, yet the aggregate decline is still shaped by the steep fall at pre-seed and seed, where companies raise the smallest and earliest rounds.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

Why one quarter is not a trend

The report itself warns against reading too much into this quarter. Its words were: “However, it would be a mistake to hyperfocus on the results of a single quarter whose results were a bit farther left on the bell curve than usual.” The same report says activity in the quarter remained relatively on pace with the previous year, which is a different message from the 29% headline.

A fair reading holds both points together: the quarter was weak against an exceptional 2023 comparison, and it was not an outlier that defines the year or the market beyond it.

Two deal counts, two different series

Searches often turn up more than one number for Q1 2024 deal counts. They come from different publishers measuring different series, and they cannot be merged.

PitchBook–NVCA: 3,925 deals

The PitchBook–NVCA Venture Monitor reports 3,925 U.S. deals in Q1 2024. This count pairs with the $36.6 billion dollar figure in the same report.

Free tools Windows power users keep installed

One-click scans. No signup required.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

KPMG Venture Pulse: 2,882 U.S. deals

KPMG’s Venture Pulse reports 2,882 U.S. deals for the same quarter, and uses 3,457 deals in Q4 2023 as its quarter-over-quarter comparison. KPMG’s series is separate from PitchBook–NVCA, and the cited material does not explain how the two define a deal, so the gap between 3,925 and 2,882 cannot be reconciled from them.

Publisher and series Measure Q1 2024 value Comparison stated
PitchBook–NVCA Venture Monitor U.S. deal value $36.6 billion Down 29.0% year over year
PitchBook–NVCA Venture Monitor U.S. deal count 3,925 deals Not stated
KPMG Venture Pulse U.S. deal count 2,882 deals Compared with 3,457 deals in Q4 2023

Always name the publisher beside a deal count, and never place the KPMG count next to the PitchBook–NVCA dollar total as if they described one dataset.

Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Support on Ko-Fi

Fundraising is a separate measure

PitchBook also reports that 100 U.S. venture capital funds raised $9.3 billion. That is money flowing into funds from their own investors, which is a different activity from investment into startups. It should not be added to, subtracted from, or compared directly with the $36.6 billion. The cited material does not give a separate date range for the $9.3 billion figure.

Limits of this snapshot

  • The figures run through March 31, 2024. Later quarters are published separately and are not covered here.
  • Dry powder, demand/supply ratios, and the stage projections come from the PitchBook–NVCA model and are estimates.
  • Deal definitions differ across publishers, so counts and dollar figures should be cited with their source.

When citing this quarter, name the publisher, the geography, the period, and the measure in the same sentence. For example: “According to the PitchBook–NVCA Venture Monitor, U.S. venture deal value was $36.6 billion in Q1 2024, down 29.0% year over year.”

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

Leave a Reply

Your email address will not be published. Required fields are marked *

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

More post from the Money Desk

  1. The Money DeskBlogTheFinanceBase09 OCT 267 minMortgage Escrow FAQs: Taxes, Insurance, Shortages, and Refunds
  2. The Money DeskBlogTheFinanceBase09 OCT 265 minHow Mortgage Escrow Accounts Work and What Homeowners Pay For
  3. The Money DeskBlogTheFinanceBase09 OCT 265 minHow to Read a Stock Chart, Volume and Market-Cap Data
Recommended PC Tool
Recommended PC Tool
PC Slower Than It Used to Be?Free scan - under a minute
Outdated Drivers Are Slowing You DownFree scan - exact matches

Two free Windows tools

One Free Minute Could Fix That PC

Before you go - each of these free tools takes about a minute and tackles what quietly slows a Windows PC down.

Special offer. View Outbyte info, uninstall instructions, EULA, and Privacy Policy.