PHOENIX — The Federal Reserve’s interest rate cut of 50 basis points in September is a “step in the right direction” for a national venture capital market that has seen a restrained pace of dealmaking activity over the past year due to economic headwinds, according to a closely watched venture capital report.
Liquidity remained elusive in the third quarter as cautious investors stepped up their standards and opted for “quality over quantity,” while increasing time spent on due diligence and adding more protections in term sheets, according to the report to be released Thursday by PitchBook and the National Venture Capital Association.
National venture capital transactions totaled $37.5 billion across 2,794 deals in the third quarter, according to the report. Arizona companies inked 37 deals totaling $248.2 million in Q3 compared to 36 deals and $295.8 million raised in the third quarter of 2023, the report shows.
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