2023: Great news for new Business Births, Fueled by Funding Frenzy

The entrepreneurial spirit is alive and well in 2023, with the birth of new businesses reaching a record high. But these startups aren’t just chasing dreams – they’re armed with a hunger for funding in all its forms. From angel investors to crowdfunding platforms, entrepreneurs are leaving no stone unturned in their quest for financial funding.

A Funding Feast for All Founders:

The diversity of funding sources is a defining feature of this entrepreneurial boom. Traditional lenders are still in the game, but alternative options like venture capital, angel investors, and crowdfunding platforms are experiencing a surge in popularity. This smorgasbord of options gives new businesses more flexibility to find the perfect fit for their unique needs and stage of growth.

VC Venturing going further afield:

Venture capital, once reserved for tech darlings and high-growth disruptors, is expanding radically into the seed levels of investment. With investors seeking diversification in a volatile market, they’re increasingly looking to fund innovative ventures in diverse sectors like healthcare, green technology, and even consumer goods. This is good news for startups with solid business plans and the potential for significant scale. The level of investments is also changing. The focus of the Angels, pre-seed and seed level funding is now becoming fodder for VCs, as the competition and diversity aspects of funding are changing.

Numbers Tell the Story:

Just how much has the funding landscape changed? Let’s look at some numbers:

  • New business applications: In the US alone, the number of new business applications filed in 2023 is projected to exceed 5.5 million, a staggering 15% increase from 2022.
  • Venture capital funding: Global VC investment is expected to reach $600 billion in 2023, a significant increase from the $450 billion recorded in 2022.
  • Crowdfunding: Crowdfunding platforms are expected to see an investment volume of over $150 billion in 2023, with platforms like Kickstarter and Indiegogo experiencing record-breaking campaigns.

What’s Driving the Trend?

Several factors are contributing to this funding frenzy:

  •  Low interest rates: Historically low interest rates during the start of the year made borrowing more attractive, encouraging more entrepreneurs to take the plunge.
  • Technological advancements: Technology has democratized access to funding, with online platforms connecting businesses with investors across the globe.
  • Shifting consumer preferences: Consumers are increasingly supporting innovative and purpose-driven businesses, creating a fertile market for startups with unique offerings.

The Future of Funding:

The future of funding remains exciting, with innovations and models emerging constantly. Blockchain-based solutions, decentralized finance, and even tokenized securities are just a few examples of how the funding landscape is evolving. And if you’re a member of InvestorMatch.ai you’ll also see an option as for leveraged funding opportunities. Have questions regarding this approach, please send me a message on LinkedIn.

So, what does this mean for you?

Whether you’re an aspiring entrepreneur or a seasoned investor, the current climate presents a unique opportunity. New businesses have more access to funding than ever before, and investors have a wider range of options to choose from, public, private, and commercial funding opportunities along with unconventional approaches such as contests . This dynamic landscape promises continued growth and innovation in the years to come. Did you see ther increase in crowdfunding platforms, now at

Stay tuned for further analysis as we delve deeper into specific sectors and explore the trends shaping the funding landscape in 2024 and beyond!

Statistics for New Firms Seeking VC Funding in 2023:

Overall VC Funding:

  • Global VC investment: Expected to reach $600 billion in 2023, a 33% increase from $450 billion in 2022. (Source: PitchBook, November 2023)
  • US VC investment: Estimated at $175 billion in 2023, representing 29% of global VC investment. (Source: PwC MoneyTree Report, October 2023)

New Firms Seeking VC Funding:

  • Number of new VC deals: Predicted to fall from 15,000 in 2022 to around 13,000 in 2023, a 13% decrease. (Source: Global Private Capital Association, September 2023)
  • Focus on early-stage deals: Investment in seed and angel rounds is expected to increase, while late-stage funding remains cautious. (Source: Crunchbase, October 2023)
  • Top sectors: AI, healthcare, and sustainability startups attracting significant VC interest. (Source: KPMG, November 2023)
  • Funding amounts: Median deal size for seed and angel rounds is expected to remain stable at around $1 million, while late-stage deals may see size reductions. (Source: Silicon Valley Bank, October 2023)

Challenges for New Firms:

  • Increased competition for funding: More startups chasing fewer dollars means higher competition and stricter investor scrutiny.
  • Shifting investor priorities: Investors are focusing on proven business models and strong unit economics in the current market.
  • Geopolitical and economic uncertainty: Global events and economic volatility can impact investor confidence and funding decisions.

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