However, the increase in funding in May does not necessarily indicate a growth in venture funding in future months, as funding tends to fluctuate in the current slower funding environment. The peak for venture funding in the past 12 months was $35 billion in September 2023. As of the end of May, AI, healthcare, and biotech are the leading sectors so far this year, each raising around $27 billion in funding.
Key takeaways:
- Venture funding reached $31 billion in May, the highest monthly tally for the year, with a 40% increase month over month and 29% year over year.
- The AI sector led in funding, with companies in the sector raising 40% of venture funding in May, totaling $12.5 billion.
- There were six companies that received billion-dollar fundings, contributing to over a third of the capital raised in May. This is the highest count of billion-dollar fundings in a single month since the venture market slowdown began in 2022.
- Five venture-backed companies were acquired for more than $1 billion in May, a record number. However, the increase in funding does not necessarily indicate a growth in venture funding in future months.