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Startup Funding Regained Its Footing In 2024 As AI Became The Star Of The Show

Jan 07, 2025 - news.crunchbase.com
In 2024, global venture funding reached approximately $314 billion, a 3% increase from 2023, with AI companies experiencing a significant surge in investment. AI-related fields attracted over $100 billion, marking an 80% year-over-year increase and accounting for nearly a third of all global venture funding. The fourth quarter of 2024 saw a notable push, with $93 billion raised, driven by large funding rounds, particularly in the AI sector. Major companies like Databricks, OpenAI, and xAI secured substantial investments, contributing to the rise in billion-dollar rounds, which accounted for 19% of total funding.

The U.S. dominated global venture funding, securing $178 billion, with the San Francisco Bay Area benefiting significantly from AI investments. Late-stage funding saw a substantial increase, while early-stage funding remained flat, and seed funding declined. Despite a slow year for exits and IPOs, the market ended on a positive note with the ServiceTitan IPO. The data, based on Crunchbase's analysis, highlights the growing influence of AI in venture funding and the potential for increased liquidity in 2025.

Key takeaways:

  • Global venture funding in 2024 reached $314 billion, a 3% increase from 2023, with AI showing the biggest leap in funding.
  • AI companies received over $100 billion in funding, making up nearly a third of global venture funding and marking 2024 as a breakout year for AI.
  • The fourth quarter of 2024 saw a significant push in funding, reaching $93 billion, with large billion-dollar rounds contributing to the increase.
  • Venture funding to U.S. companies totaled $178 billion, with the San Francisco Bay Area experiencing a boom from AI investments.
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