Despite a small uptick in global venture investment, funding for Asia-based startups fell in Q1, with a 4% drop from Q4 2023 and an 8% decline year to year. Latin American startups also saw a decrease in funding, with a 17% decline from year-ago levels and a 39% drop from the prior quarter. However, investment in Colombian startups tripled from the prior quarter. In Europe, startup funding remained steady with $11.8 billion invested in Q1 2024. Web3 sector saw a slight bounce back from its lows, raising less than $1.9 billion in Q1 2024.
Key takeaways:
- Startup investment globally had its second-worst quarter since 2018 in Q1 2024, with a cautious tone among investors, despite some large investments in AI and healthcare startups.
- Early-stage startup funding actually increased, with a total of around $29.5 billion, up 6% year over year, led by large Series B fundings in AI, electric vehicles and green energy.
- Andreessen Horowitz (a16z) emerged as the leader in the new funding environment, participating in 27 post-seed funding rounds in the first quarter of 2024, more than any other venture investor.
- Despite a small uptick in global venture investment, funding to Asia-based startups fell in Q1 2024, with total venture funding in the region falling to $17.3 billion, a drop of 4% from Q4 2023 and an 8% decline year to year.