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The Story: If you were hoping for good news regarding the state of venture markets as 2023 ends, Santa still hasn’t put that present under our tree.

November data from Crunchbase News shows that global venture funding, particularly in the early stage, is still taking a beating.

Here’s a few relevant numbers:

• Venture funding is down month-over-month this November by 16% from this time last year.

• $23 billion invested in 2022. Only $19.2 billion in 2023.

• Early stage funding was hit the worst, declining 34% year-over-year this past month.

• Seed funding also fell by 15%.

However, if you’re looking for some positive news from November, it actually exists: Late stage global venture funding increased month-over-month by about 7% last month.

Expert Take: Gené Teare, senior data editor at Crunchbase News, explains that the market is reflecting a reluctance by early stage companies to raise large seed rounds:

“What you’re finding is that a lot of the companies at the seed stage are staying there longer, are raising extension rounds and sort of holding out and not feeling ready to go to raise that big series A… fewer companies are feeling they’re ready to go and raise that significant series A round.”

Teare is not optimistic about a 2024 market comeback, unless the IPO landscape improves. She says, “Investors expect this slower funding environment to continue unless the IPO markets pick up a little bit in 2024 because the IPO markets picking up would be a signal that all is better in venture.”

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