New Delhi, Jul 31 (IANS): There has been a massive 80 per cent drop in freshly-minted unicorns (with valuation $1 billion and above) globally from the peak in 2021, a new report has revealed, as funding winter continues to hit startups.

According to leading data provider PitchBook, the average monthly number of new unicorns fell to 7.3 companies in the first half of the year.

It is down nearly 80 per cent from a peak of 50.5 companies recorded for all of 2021, reports Nikkei Asia, citing the PitchBook data.

"In the US, venture capitalists have begun to shift focus to discovering and nurturing promising companies rather than finding investment opportunities for quick gains," it mentioned.

Venture capitalists have rather shifted their focus to nurturing promising businesses than "chasing opportunities for quick returns".

The sad story continues in India as there was no new unicorn in the country in the first half of 2023 as startup funding plunged more than 70 per cent in the January-June period from a year ago.

The first six months witnessed Indian startups raise just $5.48 billion, from $19.5 billion they raised during the same period last year, according to data by market intelligence firm Tracxn earlier shared with IANS.

In the first half this year, the startup ecosystem saw 546 deal rounds, a significant drop from the total number of rounds at 1,570 in the same period last year. The funding volumes contracted due to the reduction in late-stage funding, which declined by 79 per cent in the first quarter ($1.8 billion) compared to Q1 2022.