Why VCs Can't Stop Throwing Money at US Startups
2024-01-01 09:00:00 Reading

 

From financemagnates

The United States continues to dominate the global venture capital landscape, commanding over 55% of high-value deals worth $100 million or more during the first nine months of 2024, according to new research from GlobalData.

US Claims 56% of Global Venture Megadeals as China Lags

The research reveals that American startups secured 209 mega-deals totaling $48.4 billion, dramatically outpacing China, its closest competitor, which recorded 48 deals valued at $14.2 billion. This translates to a 55.4% share of global deal volume and 56.4% of total value for the US market.

Aurojyoti Bose, Lead Analyst at GlobalData

“The US outpaced other nations in terms of both the volume and value of high-value VC deals by a substantial margin,” said Aurojyoti Bose, Lead Analyst at GlobalData. “The dominance of the US for high-value VC deals can also be understood from the fact that it was distantly followed by China, which held 12.7% and 16.6% share of high-value VC deal volume and value, respectively, during Q1-Q3 2024.”

The analysis highlights a diverse geographical spread among the top ten countries for high-value venture investments. Europe demonstrated strong representation with five nations making the list, while Asia-Pacific contributed three countries, and North America accounted for two spots.

“Of the top 10 countries by high-value VC deals volume during Q1-Q3 2024, five were from Europe, three were from the Asia-Pacific region, and two countries were from the North American region,” added Bose.

The United Kingdom secured the third position in deal volume, followed by Germany and India. Canada, France, Japan, Sweden, and the Netherlands rounded out the top ten. China, despite ranking second, captured only 12.7% of deal volume and 16.6% of value, illustrating the substantial gap between the US market and the rest of the world.

"The US continues to remain the top investment destination for VC firms, which is indicative of their confidence in the country's start-up ecosystem," Bose concluded. "Technology sector has been attracting significant interest from VC firms and so is the case in high-value deals as well."

US Crypto Lead

The United States also led the crypto venture capital market in Q3 2024, securing 56% of total capital investment and 44% of all deals. In comparison, countries like Singapore, the UK, and the UAE showed activity but at significantly lower levels, underscoring the US as the main center for crypto innovation and investment.

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