US VC Deal Spending Falls by Half in Second Quarter, Report Says

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Photographer: Jason Henry/Bloomberg
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Venture capitalists are funding fewer startups, especially at the earliest stages of a company’s life, according to new data from research firm PitchBook.

In the US, investors financed 3,011 startup funding deals last quarter, about a third fewer than a year ago. And they spent a lot less cash: $39.8 billion, down by nearly half from the same period last year. Take out the more than $6.5 billion investors spent on payments company Stripe, and the total looks even worse, said PitchBook analyst Kyle Stanford.