High-value VC deals surge 27.4 pc amid sharp 30 pc drop in overall deal volume in H1 2024: GlobalData report

New Delhi [India], August 13 (ANI): Despite a 30.3 per cent decline in the overall volume of venture capital (VC) deals, high-value investments exceeding USD 100 million surged by 27.4 per cent year-on-year (YoY) in the first half (H1) of 2024, according to GlobalData report.

According to GlobalData, a total of 6,084 VC funding deals with disclosed values were announced globally in H1 2024. This figure represents a sharp decline from the 8,723 deals recorded in the same period of 2023.

While the overall number of deals diminished, the segment of high-value deals–those valued at USD 100 million or more–experienced a robust growth.

Aurojyoti Bose, Lead Analyst at GlobalData, commented on the findings and said, “Low-value deals have continued to dominate the VC funding landscape. However, what stands out is the growth in the volume of high-value VC deals (>= USD 100 million), even as the volume of low-value deals has declined.”

The report reveals that while low-value deals (those valued <= USD 10 million) still comprise a substantial portion of the market–accounting for 65.8 per cent of the total number of VC deals with disclosed funding–there has been a considerable reduction in their volume.

Specifically, low-value deals decreased by 36.7 per cent YoY, from 6,322 deals in H1 2023 to 4,004 in H1 2024. Notably, the number of VC deals valued at USD 1 million or less plummeted by an astonishing 53.2 per cent during the same period.

Conversely, high-value VC deals saw a marked increase. The volume of these deals rose by 27.4 per cent YoY, from 164 deals in H1 2023 to 209 deals in H1 2024. Despite this increase, high-value deals represented a modest 3.4 per cent share of the total number of VC deals with disclosed funding value.

Bose further noted, “The growth in high-value deals volume helped several countries, including China, the UK and India, to register YoY improvement in total VC funding value in H1 2024.”

In contrast, mid-size funding deals (those valued between USD 10 million and USD 100 million) experienced a decline of 16.4 per cent YoY, with their volume dropping from 2,237 deals in H1 2023 to 1,871 in H1 2024.

Mid-size deals now account for approximately 30.8 per cent of the total number of VC deals with disclosed funding value.

Bose concluded, “The contrasting trends in VC funding highlight a period of significant transition. The decline in low-value deals alongside the growth in high-value investments indicates that investors are prioritizing substantial opportunities with greater potential returns. This shift could reshape the funding landscape, emphasizing quality and strategic impact over sheer volume.”