In the Venture Pulse Q2 2023 report, a comprehensive analysis of global venture funding, KPMG revealed that venture capital investment remained relatively stable during the period of April to June. Noteworthy contributions to this stability were the significant raises achieved by companies like Stripe, Shein, Inflection, and Byju, amounting to billions of dollars.
For India, the report highlighted a slight increase in VC investment compared to the previous quarter. However, the growth remained relatively subdued compared to the same period in 2022, when the country experienced over $8 billion in VC investment. Some of the notable deals in Q2 2023 included Byju, Lenskart, and True Balance, attracting substantial investments.
The global VC market continued to face challenges during April-June, with geopolitical uncertainties, high inflation rates, and the possibility of further interest rate increases in major jurisdictions contributing to market uncertainty. As a result, VC investors refrained from engaging in large mega-deals during this quarter.
The rising interest rates in several regions prompted non-traditional VC investors to explore alternative investment opportunities with lower risk, such as bonds and deposit accounts. These alternatives seemed more appealing given the uncertainties in the VC market, providing investors with a sense of security through a known return.
In light of the persisting market challenges, VC investors worldwide exercised caution, making strategic investment decisions while exploring various avenues for growth and stability.