Venture Capital Blog

A 90-day Retrospective on Venture Capital Funding in 2023

Let's reflect on resilience. As the sun has set on another fiscal quarter, it's time to look back and take stock of the venture capital (VC) landscape over the last 90 days. Amidst an environment of rising and subsequently cooling inflation, which initially led to a stark decline in VC funding, five sectors have audaciously defied the odds. Fundz data shows these industries – Professional Services ($47.06 B), Financial Services ($46.57 B), Consumer Goods ($46.1 B), Artificial Intelligence ($14.16 B), and Energy ($4.51 B) – have showcased significant funding increases when compared to the 90 days prior, serving as bastions of hope in these challenging times.

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The Audacious Titan: Professional Services

Remarkably, in the face of economic adversity, the Professional Services sector has managed to attract an impressive $47.06 B in VC funding over the last 90 days. This sector encompasses firms offering specialized business services, such as consulting, advertising, and legal advice.

Reflecting on past success stories, 'Slack' is a standout example. Launched in 2013, it grew to become an essential professional service by the end of the decade, revolutionizing team communication in businesses worldwide.

The Stalwart Surmounter: Financial Services

The Financial Services industry, encompassing banking, insurance, and investment services, has displayed considerable resilience, securing $46.57B in VC funding.

A retrospective glance at the industry reminds us of 'Square', a company founded in 2009 that fundamentally disrupted the financial services sector by democratizing access to payment processing, a legacy that still resonates in the 2020s.

The Robust Dynamo: Consumer Goods

Bucking the trend, the Consumer Goods industry has seen an infusion of $46.1 B in VC funding. This sector includes companies that manufacture and distribute products for everyday use.

A flashback to the success of 'Beyond Meat', a company launched in 2009, serves as a reminder of the potential within this sector. The plant-based meat producer started a food revolution that continued to influence consumer choices and industry trends well into the next decade.

The Persistent Innovator: Artificial Intelligence

Despite the wider economic turmoil, the Artificial Intelligence (AI) sector, a powerhouse of innovation, has received $14.16 B in VC funding over the last 90 days.

Looking back, 'OpenAI', founded in 2015, stands as a monumental success in the AI landscape. It brought groundbreaking AI research and applications into various industries, demonstrating the transformative potential of this sector.

The Steadfast Luminary: Energy

Against all odds, the Energy sector has attracted $4.51 B in VC funding, focusing on innovative solutions for energy production, conservation, and distribution.

Reflecting on past successes, 'Tesla' comes to mind. Launched in 2003, it revolutionized the energy sector with its electric vehicles and sustainable energy solutions, casting a long-lasting impact on the industry that was felt well into the 2020s and beyond.

While the past year has been fraught with economic challenges, these five sectors have demonstrated exceptional resilience and innovation over the last 90 days, as compared to the previous quarter. The trailblazers of the past, like Slack, Square, Beyond Meat, OpenAI, and Tesla, illuminate the path for current startups navigating these tumultuous times. As we look forward to the next 90 days, these industry trends provide hope and inspiration for a brighter future in the startup ecosystem.