The number and value of venture capital deals in the Seattle-Tacoma-Bellevue metro area in the fourth quarter of 2023 both fell from Q4 2022 and from Q3 2023, according to the latest data from PitchBook and NVCA.
The metro area recorded 81 deals valued at $762 million last quarter, down from $2.4 billion and 107 deals a year ago, and $1.1 billion and 88 deals in the third quarter, according to the data.
The biggest Eastside deals in the fourth quarter were Chainguard, a Kirkland cybersecurity company, $61 million in a Series B funding round; Pandion, a Bellevue-based technology-powered shipping network for e-commerce, $50.9 million in a Series B round; and Rain City Capital of Kirkland, a hard money lender serving real estate investors and professionals, $45.4 million in later stage VC, according to PitchBook and NVCA data.
The Seattle region’s VC activity reflected the nation, which had 2,879 deals valued at $37.5 billion, both down from a year ago and the third quarter. For the year, U.S. deals were valued at $170.6 billion, the lowest level since 2019, in 15,766 actual and estimated deals.
While 2023 was marked by fewer deals and less capital invested than 2022, the industry is extremely well capitalized, and advances in artificial intelligence, life sciences, and clean technology are attracting significant public and private investment, according to the executive summary in the fourth quarter PitchBook NVCA Venture Monitor report.
“Furthermore, a tremendous need exists for new capacity in fields like manufacturing and materials processing to de-risk existing supply chains and power the green transition. The world has changed, and it is up to America’s VC community to make sure those changes leave the world better off,” the summary concluded.