Startup Funding Drops by $1.2 Billion Compared to Last March

Startup Funding Drops by $1.2 Billion Compared to Last March

30 March 2024 – Private equity and venture capital investments experienced a significant decline of $1.2 billion in March 2024 compared to the same period last year, marking a departure from the recent upward trend in funding.

Investment Decline:

Investments by private equity and venture capital firms plummeted to $1.8 billion across 64 deals in March 2024, down from $3 billion in March 2023, as per data from Venture Intelligence.

The largest investment in March 2024 was a $500-million funding by Singapore-based GIC for a joint venture with Sterlite Power Transmission. This was followed by Advent International & Multiples’ $233-million investment in microlender Svatantra Microfin.

The number of deals from January to March 2024 decreased to 205, compared to 242 deals in the same period in 2023. Total investments during this period also saw a decline from $6.8 billion in 2023 to $6.3 billion in 2024.

The number of mega deals ($100 million and above) reduced to four in March 2024, down from six in March last year, indicating a shift in the investment landscape.


Conclusion:

The substantial drop in funding for startups and ventures in March 2024 highlights a temporary setback in the investment climate, contrasting with the positive trends seen earlier in the year. However, notable investments by established players indicate ongoing interest and activity in the startup ecosystem despite challenges.