April 9, 2024

Contact: Robin Ceppos

WASHINGTON, DC – The venture capital landscape underwent a major transformation in 2022, but 2023 marked the beginning of a new normal. By the end of 2023, the U.S. VC ecosystem had 3,417 VC firms, which closed a cumulative 13,608 VC deals worth $170.6 billion. Additionally, these firms raised $66.9 billion across 474 funds and ended the year with $311.6 billion in dry powder and a total of $1.21 trillion under management. These figures, along with more detailed insights, illuminate the narrative of America’s innovation ecosystem as chronicled in the National Venture Capital Association’s (NVCA) 2024 Yearbook, with data provided by PitchBook.

The investment activity of 2023 registered a notable decline from the windfall years of 2021 and 2022, yet it remained consistent with long-term trends. Prior to the surge of VC activity that coincided with the COVID-19 Pandemic, investment activity had reliably increased year on year with 2020 marking the high point in VC activity ($172.3 billion) before activity exploded in 2021 and 2022. When compared to the more linear growth of 2020, 2023 saw a 1.5% dip in overall investment to $170.6 billion. However, 2023 still surpassed the ten-year median of $148.2 billion. VC fundraising was weaker than overall investment, but still on trend with the $66.9 billion raised in 2023 marking the ten-year median. 

While investment and fundraising levels were relatively robust in 2023, disclosed exit activity painted a more subdued picture. At $61.5 billion, disclosed exits were well below recent trends. Perhaps not coincidentally, companies have been waiting longer to exit, with pre-exit ages at their highest levels in at least a decade. While the causes behind the tepid exit environment are subject to debate, there is a veritable backlog of mature VC-backed companies waiting for the market to signal a more hospitable climate.

The uncertainty of the market is further underscored by the record amount of dry powder held by investors. Totaling nearly $312 billion, this reservoir of capital is powering the next generation of American innovation and making sure that the industries of the future are based in the United States.

“With a reservoir of capital and an intense interest in innovation, American VCs continue their search for talented entrepreneurs with big ideas,” said Bobby Franklin, NVCA President and CEO. “As an industry, VC activity may be reverting to the mean after a few years of exuberant highs, but make no mistake, our investment ecosystem is still the envy of the world.”

Key Facts of the U.S. Venture Industry in 2023

  • There was $170.6 billion of VC investment into the U.S. economy in 2023.
  • Overall, the United States accounted for 49% of total world VC deal value, the highest level since 2014.
  • Dry powder hit a record of $311.6 billion, roughly 26% of total VC AUM.
  • Median fund size was $35.4 and the largest fund raised in 2023 was $4 billion.
  • Investors remained relatively cautious, with first-time financings ($7.8 billion) at their lowest value since 2017 and insider-led rounds at their highest levels in a decade.

Venture Across the Country

  • While deal volume was reduced from 2022 levels, some states, like Alabama, Missouri, and Tennessee, all had significant year-on-year growth in venture investment.
  • The Midwest had the most resilient level of venture investment compared to other regions, with an 8% reduction in overall investment, compared to an average of 30% across other regions.
  • Many emerging ecosystems had a strong year in 2023, with Columbia Missouri, Ft. Collins Colorado, Carson City Nevada, and Birmingham Alabama all seeing significant year-on-year growth in venture investment.
  • New ecosystems are starting to show their strength with Colorado and Texas rounding out the top five states for VC activity in 2023.

NVCA in Action in 2023

  • Policy: NVCA spent considerable time protecting the VC business model, even going as far as suing the SEC along with a coalition of asset managers to prevent the adoption of the private funds rulemaking.
  • Programs: NVCA and its 501(c)(3) supporting organization, Venture Forward, delivered strong programming to support the VC ecosystem from coast to coast, including celebrating NVCA’s 50thanniversary at the New York Stock Exchange, the 2023 VC Awards Ceremony, the Strategic Operations & Policy Summit, VC University, LP Office Hours, and convening our members-only peer groups in-person and virtually.

Download the NVCA 2024 Yearbook HERE. Access the public supplemental PDF data pack HERE. NVCA members may access the members-only supplemental XLS data pack by contacting


The National Venture Capital Association (NVCA) empowers the next generation of American companies that will fuel the economy of tomorrow. As the voice of the U.S. venture capital and startup community, NVCA advocates for public policy that supports the American entrepreneurial ecosystem. Serving the venture community as the preeminent trade association, NVCA arms the venture community for success, serving as the leading resource for venture capital data, practical education, peer-led initiatives, and networking. For more information about the NVCA, please visit