The number of venture capital (VC) funding announced deals dropped by 22.5% during the week ended 29 March 2020 compared to the previous week, according to GlobalData’s deals database.
VC investors are taking cautious approach due to volatile market conditions since the outbreak of the coronavirus (COVID-19), resulting in subdued funding activity over the past few weeks.
GlobalData analyst Aurojyoti Bose said: “Deal activity plunged in most of the key markets during the week ended March, 29, 2020 compared to the previous week. While the US witnessed a decline in deal volume by 33%, the UK witnessed deal volume declining by 34.8%.
“However, China, which has also been witnessing a drop in VC funding activity, showcased signs of recovery with the deal volume increasing by 31.9% during the week ended March, 29, 2020 compared to the previous week.”
There was also a drop in deal activity in sectors like healthcare (including pharmaceuticals and medical equipment), retail and travel and tourism during the week ended 29 March 2020, compared to the earlier week.