Despite the volatility, the AI sector remains a long-term growth opportunity for VC investors. Although the number of deals decreased by 28% year-over-year to 79, larger investments have boosted overall funding levels. As of the report, AI startups had raised a record $53 billion for the year, surpassing the $49.4 billion raised in all of 2021. This brings total funding in the AI sector to over $241 billion, with U.S. companies, particularly those in California, securing nearly 65% of the total.
Key takeaways:
- Venture capital firms are struggling due to a lack of mergers, acquisitions, and public listings, leading to a liquidity drought.
- Artificial Intelligence startups are drawing significant investor attention, with AI companies raising $11.8 billion in the third quarter of this year, accounting for about 30% of total VC investments worldwide.
- Despite the challenging environment, the AI sector remains a long-term growth opportunity for VC investors, with the overall interest remaining strong.
- AI startups had raised a record $53 billion for the year, bringing total funding in the AI sector to over $241 billion, with U.S. companies, especially those in California, securing nearly 65% of the total.