Summary:
2024 saw a 3% increase in global venture funding, totaling nearly $314 billion.
AI dominated the funding landscape, receiving over $100 billion, an 80% increase from 2023.
Q4 2024 experienced a 36% increase in funding, totaling $93 billion.
19% of funding went to billion-dollar rounds, driven by the AI sector.
U.S. companies raised $178 billion, accounting for 57% of global funding.
Global venture funding in 2024 saw a 3% increase over 2023, totaling nearly $314 billion. A significant portion of this growth can be attributed to the artificial intelligence (AI) sector, which experienced a staggering 80% year-over-year increase in funding, reaching over $100 billion.
Breakout Year for AI
One of the most notable trends in 2024 was the dominance of AI-related companies, receiving close to one-third of all global venture funding. This surge not only surpassed previous years but also marked a peak for the AI sector over the last decade.
Q4 Push
The fourth quarter of 2024 was particularly robust, with funding totaling $93 billion, a 36% increase from the same quarter in 2023. This quarter closed with three companies raising a combined $22 billion in the largest rounds of the year.
Large Values, Billion-Dollar Rounds
A remarkable 19% of total funding in 2024 went to billion-dollar rounds, predominantly driven by the AI sector. Notable companies like OpenAI, Databricks, and xAI achieved monumental valuations and attracted massive investments.
US Gains, Silicon Valley Fired Up
The U.S. accounted for 57% of total global funding, with $178 billion raised, showcasing a significant increase from 48% in 2023. The San Francisco Bay Area alone saw $90 billion in funding, up from $59 billion the previous year.
Late-Stage Q4 Boom
Late-stage funding surged to $61 billion in Q4, a 70% increase from the previous quarter, indicating a strong recovery in the market. This boom was reflected across various sectors, including AI, energy, and banking.
Early Stage Flat
In contrast, early-stage funding remained flat, indicating a potential slowdown in new ventures entering the market.
Seed Settled
Seed funding saw a decline, totaling $7 billion, down 16% from the previous year, though this may adjust as more data is reported.
Liquidity Hold-Up
2024 was a slow year for exits, with M&A activity slightly up but still below expectations, particularly in the biotech and cybersecurity sectors. The IPO market also faced challenges, although it ended on a positive note with the successful IPO of ServiceTitan.
Methodology
The insights shared are based on data from Crunchbase, reported as of January 3, 2025. All funding values are expressed in U.S. dollars unless otherwise noted.
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