Disclaimer: This article provides general information and is not legal or technical advice. For official guidelines on the safe and responsible use of AI, please refer to the Australian Government’s Guidance for AI Adoption →
Key facts: How much venture capital was invested in 2023?
Brief, factual overview referencing current Australian context.
How much VC was invested globally in 2023?
Around US$248B–US$285B depending on the tracker (scope and methodology differ).
Why do estimates for 2023 differ by source?
Datasets vary on equity vs. debt, CVC, secondaries, stage definitions, and backfilled disclosures.
Did AI meaningfully influence 2023 funding?
Yes. AI drew several mega-rounds and cushioned early-stage activity despite a late-stage slowdown.
In 2023, global venture funding fell sharply from 2021–2022 highs. Depending on the tracker and methodology, totals range between roughly US$248B and US$285B. This article summarises what the major sources reported, why figures differ, and how to interpret the headlines if you are building an AI career in Australia (as at Jan 2026).
Year-in-review context for funding levels.
Who is this guide for?
Founders & Teams
You want a realistic read of 2023 funding to plan hiring, runway, and GTM in 2026.
Students & Switchers
You’re gauging market health and which skills and sectors remain resilient.
Community Builders
You support meetups, mentoring, or programs and need an evidence-based summary.
Global total for 2023: what the major trackers reported
The headline global total depends on the dataset: Crunchbase reports ~US$285B and CB Insights ~US$248B for 2023. Both point to a slower first half, stabilisation in the second half, and far fewer mega-rounds than 2021–2022. These differences are normal across venture datasets and stem from scope and classification choices.
Key insight
2023 was a reset year. Totals fell, but early-stage and AI-focused rounds showed relative resilience compared to late-stage deals and speculative categories.
Why the numbers vary: methodology 101
Venture trackers include or exclude different things: equity vs. debt, corporate venture, ICOs and tokens, secondaries, and undisclosed or small rounds. Regional attribution also differs. Many providers backfill as new disclosures arrive, so figures can shift months later.
How to compare like-for-like
When you cite a number, always name the source and the scope (e.g., “equity-only, excludes debt”). Prefer medians to avoid being skewed by a handful of mega-rounds, and consider stage-specific trends (seed vs. late-stage) rather than a single global total.
Practical checklist
State the source and what it counts (equity, debt, CVC, secondaries).
Check whether numbers are preliminary or final; many datasets backfill.
Look at medians and stage mix, not just the global headline total.
Compare to 2021 and 2022 for context, then focus on the latest two quarters.
Quarter-by-quarter picture in 2023
Most datasets show a weak Q1–Q2 and a more stable Q3–Q4. IPOs and large exits remained scarce until late 2023, which kept late-stage activity muted. Seed and early Series rounds continued—often at down-to-flat valuations relative to 2021 peaks—but did not collapse.
Sectors: AI mega-rounds amid broader caution
AI drew outsized attention with several large financings, while categories like fintech and crypto cooled from their 2021 highs. Health, climate, and deep tech showed selective strength, particularly where there was clear commercial traction or regulatory support.
Pro tip
For careers: prioritise hands-on AI capability tied to real product outcomes—evaluation, deployment, and measurable impact. Hiring managers optimise for shipped value, not just model familiarity.
How to read VC stats without getting misled
1Check source scope: equity vs. debt, CVC, secondaries, and region/stage definitions.
2Compare medians and stage trends; avoid over-weighting a single mega-round.
3Track momentum: look at quarter-on-quarter direction and exit windows, not just annual totals.
Australia: what to know if you are job hunting
Australian totals for 2023 also declined versus 2021–2022, with fewer large late-stage rounds. However, seed and early-stage activity persisted, and AI projects with credible paths to customers remained competitive. If you’re seeking roles: tailor your portfolio to local market problems, show clear ROI, and connect with the community to surface opportunities that never hit job boards.
Bottom line for 2026
2023 marked a reset, not a halt. 2024 showed signs of recovery helped by AI interest and a slowly reopening exit market. For Australian builders and learners, focus on durable skills, evidence of impact, and community connections—these outlast the cycle.
Cut Through Venture • Local methodology and annual Australian funding totals; regularly updated.
Analysis
Disclaimer: This article provides general information and is not legal or technical advice. For official guidelines on the safe and responsible use of AI, please refer to the Australian Government’s Guidance for AI Adoption →
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About the Author
Dr Sam Donegan
Medical Doctor, AI Startup Founder & Lead Editor
Sam leads the MLAI editorial team, combining deep research in machine learning with practical guidance for Australian teams adopting AI responsibly.
AI-assisted drafting, human-edited and reviewed.
Frequently Asked Questions
How much venture capital was invested globally in 2023?
Depending on the data provider and methodology, global VC funding in 2023 is reported between roughly US$248B (CB Insights) and US$285B (Crunchbase). The headline: 2023 was down markedly from 2021–2022 but stabilised in H2.
Why do different sources report different numbers?
Trackers vary by what they count (equity vs. debt, ICOs, grants), inclusion of corporate venture, secondary transactions, minimum round disclosure thresholds, and how they classify stages. Many also update historical data as deals are disclosed later.
How did Australia fare in 2023?
Most reports show a significant decline versus 2021–2022. Totals vary by source; for a local lens, see Cut Through Venture’s year-in-review for methodology and the latest figure. Regardless of the exact total, late-stage deals slowed while seed activity proved more resilient.
Which sectors drew the most funding?
AI captured outsized attention with multiple mega-rounds, while fintech and crypto cooled from 2021 peaks. Health, climate, and deep tech showed pockets of strength, often at earlier stages.
Did the market improve in 2024?
Reports indicate a modest rebound in 2024 (e.g., KPMG cites ~US$368B globally), helped by AI-related investments and gradually reopening IPO markets. Always compare like-for-like methodologies when using these figures.
What does this mean for AI jobseekers in Australia?
Hiring follows funding but with a lag. Focus on demonstrable skills (projects, MLE pipelines, evaluation), align to resilient sectors (AI/automation in real products), and build community connections (e.g., MLAI) to surface opportunities.
