A sluggish fourth quarter marked the close of a lackluster year for global startup funding in 2023, with venture capital investors remaining cautious. The year witnessed the lowest venture funding since 2018, plummeting by 38% to $285 billion, down from $462 billion in 2022. The US market's influence on the global scenario became evident, with a downturn in tech stocks, a sluggish IPO market, and 2021 valuations proving unsustainable. Tech layoffs, reduced capital deployment, and heightened investment criteria added challenges for startup founders. Amid this, AI emerged as a standout sector, securing close to $50 billion, a 9% increase from 2022. Notably, foundation model companies like OpenAI, Anthropic, and Inflection AI led with a combined $18 billion in 2023. Sectors like Web 3 faced a significant decline from $28 billion to $7.6 billion, while financial services, e-commerce, shopping, media, and entertainment also experienced downturns. Early-stage funding took the hardest hit in 2023. Looking ahead to 2024, the funding landscape demands resilience and a robust strategy from startups and established businesses. Clear deployment plans and responsible financial management will be crucial. Shrinking operational costs, increasing margins, and exploring debt options for established businesses are recommended. Grus Capital stands ready to address funding queries for startups at Info@gruscapital.com or +1 (416) 366-4847.