Seed Deals Hold Up Despite Contraction in Venture Capital Market

Seed deals in the venture capital market are holding up well despite a general contraction in the industry. The main reason for this is rapid growth. Late-stage investment increased by 8% from Q2, while early-stage investment decreased by 16% and seed investment decreased by 14%. Global venture funding settled around $22 billion in August 2023, up around 19% month over month but down 16% from the $26.2 billion invested in July 2022. Late-stage dealmaking is crumbling with sharp valuation declines across nearly every startup stage globally.