Venture capitalists put US$97 billion ($132.4 billion) into artificial intelligence (AI) startu-ps in the US last year — a new record in a year of multibillion-dollar megarounds for companies like Elon Musk’s xAI, OpenAI and Anthropic.
The AI-focused deals represent an increasing share of all startup investment, according to new PitchBook data released Tuesday. Almost half of the total US$209 billion raised by US startups last year went to AI companies, the research firm said, the highest portion on record.
The total amount of funding for startups ticked up for the year, rising by about one-third from 2023. Meanwhile, VCs themselves raised US$76.1 billion for 508 funds, the lowest number since 2014, and the lowest dollar amount since 2019.
The numbers demonstrate the ongoing bifurcation in venture: Large, established firms have found it easier to raise money, as have some of the biggest, buzziest startups. While more cash gets lavished on AI companies, many plain-vanilla startups in formerly hot sectors like enterprise software are having trouble raising money at once achievable valuations, reflecting a longstanding post-pandemic trend in the industry.
A closely watched metric of initial public offerings and acquisitions of startups — also called exits — brought in US$149.2 billion for the year, almost US$30 billion more than 2023 and about the same as 2022.
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VCs and start-ups outside the US had a more difficult year. Start-up funding in Europe declined to US$61.6 billion in 2024, compared with US$66.7 billion in 2023, PitchBook found. And deals in Asia declined to US$75.9 billion from US$100.1 billion in 2023.
