Global venture capital funding plummeted by 48% in H1 2023, falling to USD173.9bn, according to data from PitchBook. The decline, coupled with a 19% decrease in deal numbers, comes despite significant interest in AI startups driven by OpenAI’s ChatGPT. Investments into AI startups surpassed USD40bn in the past six months, including Microsoft's USD10 investment in OpenAI and USD1.3bn for Inflection AI. Regionally, Latin America experienced the most significant drop at 86%, with the US and Europe seeing declines of 65% and 69% respectively. High interest rates, a slow IPO market, and fewer exit opportunities have led investors to be more selective, contributing to a significant decrease in venture funding.