Venture capital funding for start-ups plummeted by more than half in the first quarter of 2023 compared with the year before.
The period saw a massive slowdown in the tech industry, as the number of new funding agreements fell to less than 3,000, a 55 percent decline and the lowest level in more than five years.
American-based start-ups raised $37 billion from venture capital firms in the first quarter, the lowest amount in 13 consecutive quarters, according to data from research firm PitchBook and the National Venture Capital Association.
Investors were already reducing the amount of liquidity they were willing to hand over to new start-ups after the Federal Reserve adopted a hawkish borrowing-rate strategy to fight inflation….