Generative AI drives 11% increase in global venture capital funding

Generative AI Drives VC Funding Surge in Q1 2024

Venture capital (VC) funding saw a slight increase in Q1 2024, reaching US$58.4 billion, with significant growth in the generative artificial intelligence (gen AI) sector. Massive investments from Amazon and Alibaba into Anthropic and Moonshot AI, respectively, highlight the continued investor enthusiasm for gen AI’s potential disruption.

This builds on 2023’s record-breaking US$21.8 billion in VC funding for gen AI startups. Global VC funding in Q1 2024, while down 21% year-over-year, was partially sustained by gen AI activity.

Mega-Rounds and Unicorn Births

Mega-rounds (deals of US$100 million+) saw a significant jump in Q1 2024, representing 45% of total funding. The quarter also saw 19 new unicorns (startups valued at over US$1 billion), with Europe seeing a five-quarter high.

Fintech Sector Experiences Setback

Fintech saw a decline in Q1 2024, with funding down 119% year-over-year and deals decreasing by 40.6%. Europe was the only region with increased fintech funding compared to Q4 2023. This decline continues a downtrend observed across 2022 and 2023.

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