Global venture capital investments dropped to USD75.9bn in Q1 2024, marking a five-year low, influenced by high interest rates and despite significant investments in AI, PitchBook reports. Deal activity also decreased, with an estimated 10,222 deals, the lowest in nearly four years. The slow resurgence of initial public offerings (IPOs) in the US, crucial for venture capital returns, has been hindered by tight monetary policy. With many large companies remaining privately held, the venture capital market faces challenges in returns, investment, and cash runways. PitchBook’s lead venture capital analyst, Kyle Stanford, does not anticipate a near-term increase in deal activity. Exit deal values hit a six-year low at USD234.3bn last year, with U.S.-based VC firm exits at their lowest since 2016.