Venture capital (VC) funding for startups has fallen by around 20% since December 2019 as the covid-19 pandemic smashed the global economy, but the impact is unevenly distributed according to new research from Startup Genome.
The California-based analytics firm’s latest report into global startup funding, the first in a series its planning looking at the impact of coronavirus on the sector, found that China was hardest hit first on the investment front, much like the virus. VC funding fell more than 50% in January and February compared to the rest of the world. And while China rebounded in March, the numbers remain below pre-crisis levels. Other Asian ecosystems saw major drops in January and have yet to bounce back.
The US, with a more mature VC market, has only fallen by less than 10% between December and March.
