Despite the overall decline, artificial intelligence (AI) was a bright spot, with global funding to AI startups reaching nearly $50 billion, a 9% increase from 2022. The largest fundings in 2023 went to OpenAI, Anthropic, and Inflection AI, which collectively raised $18 billion. Smaller increases in investment were also seen in the insurtech, semiconductor, and battery technology sectors.
Key takeaways:
- Global startup investment in 2023 was the lowest since 2018, with a total of $285 billion, marking a 38% decline from the $462 billion invested in 2022.
- Despite the overall decline, the artificial intelligence sector saw a positive increase in funding, with global funding reaching close to $50 billion, a 9% increase from 2022.
- The U.S., which accounts for about half of all venture funding, saw a 37% year-over-year decrease in funding to U.S.-based startups in 2023, totaling $138 billion.
- More than 191,000 workers at U.S.-based tech companies were laid off in mass job cuts in 2023, reflecting the global economic slowdown and the tech sector's struggles.