Sign up to save tools and stay up to date with the latest in AI
bg
bg
1

The State Of Startups In 12 Charts: AI Soars, Asia Tanks, Seed Stalls And More

Feb 03, 2025 - news.crunchbase.com
In 2024, global startup funding was heavily dominated by artificial intelligence (AI) companies, with $100 billion in venture capital directed towards AI-related startups, marking an 80% increase from 2023. This surge in AI investment contributed to a total global venture funding of nearly $314 billion. North America led this trend with a 21% increase in startup funding, while Asia experienced a significant decline, hitting a 10-year low, particularly due to reduced investments in China. Despite the overall increase in venture funding, seed-stage investments dipped, highlighting challenges for early-stage startups, although those securing seed rounds generally raised larger amounts.

The year also saw a rise in mergers and acquisitions (M&A) involving venture-backed startups, with a 7% increase in activity, particularly in the fourth quarter. However, the creation of new unicorns slowed down, and many existing unicorns face outdated valuations due to a stagnant IPO market. As 2025 begins, key trends to watch include the impact of the DeepSeek scare on AI investment, potential changes in the IPO market, and the progression of startups beyond the seed stage.

Key takeaways:

  • Global startup funding in 2024 was heavily dominated by AI investments, with $100 billion going to AI-related startups, marking an 80% increase from 2023.
  • North America saw a significant 21% increase in startup funding, largely driven by AI, while Asia experienced a decline to a 10-year low in venture investment.
  • Seed-stage investment dipped in 2024, with startups staying longer at the seed stage and fewer progressing to Series A, despite larger seed deals being raised.
  • M&A activity involving venture-backed startups increased by 7% in 2024, with the fourth quarter being the most active in seven quarters.
View Full Article

Comments (0)

Be the first to comment!