Total funding into US Tech startups rose 8% to $67.5B in H1 2023, compared with $62.2B in H2 2022

USA, July 13, 2023/EINPresswire.com/ -- Tracxn releases its H1 2023 Report: US Tech companies account for nearly 60% of global startup funding

Highlights:
-Total funding into US Tech startups rose 8% to $67.5B in H1 2023, compared with $62.2B in H2 2022
-102 $100 million+ funding rounds took place in H1 2023
-The number of acquisitions fell to 766 in H1 2023 from 998 in H2 2022
-San Francisco, New York City and Palo Alto take the lead in terms of funding
-Enterprise Applications, FinTech and Life Science were the top-performing sectors for H1 2023

US, July 13, 2023: Tracxn, a leading global SaaS-based market intelligence platform, has released its US Tech Half Yearly Funding Report - H1 2023. The report, based on Tracxn’s extensive database, provides insights into the US Tech space.

In H1 2023, The US Tech startup ecosystem accounted for almost 60% of the total funds raised by tech startups globally in the same period. US Tech startups raised a total of $67.5 billion in H1 2023, an increase of 8% compared with H2 2022, and a drop of 46% when compared with H1 2022. This change in H1 2023 was primarily driven by late-stage funding, which rose 34% from H2 2022, but fell 44.6% from H1 2022.

Early-stage investments into this space in the first half of 2023 fell 14% and 48% when compared with H2 2022 and H1 2022 respectively. Seed-stage funding in H1 2023 also witnessed a decline of 23% from H2 2022 and 39% as against H1 2022.

Similar broad trends were observed in the quarter-wise data as well. US Tech startups recorded funding of $35.1 billion in Q2 2023, which is an uptick of 9% from the previous quarter (Q1 2023). Funding in Q2 2023 fell 37.5% from the corresponding quarter last year. However, Q2 2023 is still the highest funded quarter compared to the past four quarters.

Enterprise Applications, FinTech and Life Sciences were the top-performing segments in the first six months of 2023 Enterprise Applications companies have raised a total of $32.7 billion in H1 2023, an increase of 21% compared to H2 2022. This funding in H1 2023, is almost half of the total funds raised by the US Tech startups in the same period. The growing adoption rate for digital transformation across industries has directly contributed to the growth in this segment.

The FinTech space has witnessed a growth of 39% in H1 2023 compared to the funding raised in H2 2022. The $6.9 billion raised by the Payments solution provider, Stripe was the major contributor for growth in this space.

In the first six months of 2023, 12 companies went public, compared with 28 in H2 2022 and 27 in H1 2022. The number of acquisitions, too, declined to 766 in H1 2023, from 998 in H2 2022 and 1,213 in H1 2022.

San Francisco, New York City and Palo Alto take the lead in terms of funding. Tech startups based in San Francisco raised $23.9 billion in H1 2023, followed by

Y Combinator, New Enterprise Associates and Techstars were the most active investors in the US Tech space. Y Combinator, Techstars, and Gaingels were the top seed investors, while Google Ventures, General Catalyst Partners, and Khosla Ventures were the top early-stage investors. Iconiq Capital, Sapphire Ventures, and CapitalG were the top late-stage investors.

About Tracxn

Tracxn Technologies Ltd. is a data intelligence platform for private market research, tracking 1.8 million entities through 1800+ feeds categorised across industries, sub-sectors, geographies and networks globally. It has become one of the leading providers of private company data and ranks among the top five players globally in terms of the number of companies and web domains profiled.

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