Why VCs Can’t Stop Throwing Money at US Startups

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.

While US
companies attracted the largest share of capital, firms founded in 2021
received the most substantial investments. Companies established in 2022,
however, completed the highest number of deals, indicating competition between
established and emerging startups for funding.

Overall,
the venture capital landscape for crypto remains challenging, as investment
levels continued to decline throughout 2024. Early-stage startups focused on AI
and blockchain infrastructure received the most funding despite the downtrend.
According to Galaxy’s report, venture capital investment in crypto and
blockchain startups reached $2.4 billion in Q3 2024, marking a 20% quarterly
drop. Deal volume also fell by 17%, with a total of 478 deals completed.

A separate study
from the beginning of 2024 showed VCs
are no longer interested in blockchain technology
, as funding in the sector
almost stopped.

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.

While US
companies attracted the largest share of capital, firms founded in 2021
received the most substantial investments. Companies established in 2022,
however, completed the highest number of deals, indicating competition between
established and emerging startups for funding.

Overall,
the venture capital landscape for crypto remains challenging, as investment
levels continued to decline throughout 2024. Early-stage startups focused on AI
and blockchain infrastructure received the most funding despite the downtrend.
According to Galaxy’s report, venture capital investment in crypto and
blockchain startups reached $2.4 billion in Q3 2024, marking a 20% quarterly
drop. Deal volume also fell by 17%, with a total of 478 deals completed.

A separate study
from the beginning of 2024 showed VCs
are no longer interested in blockchain technology
, as funding in the sector
almost stopped.

This post is originally published on FINANCEMAGNATES.

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