TLDR:
- Global venture funding in Q1 2024 was the second-lowest since 2018.
- Investors remain cautious despite a 6% increase in funding from the previous quarter.
Article Summary:
The first quarter of 2024 saw global venture funding reach $66 billion, marking the second-lowest quarter since 2018. While there was a 6% increase from the previous quarter, funding was down by 20% year over year. Healthcare and AI sectors led in funding, with AI companies raising $11.4 billion and healthcare and biotech companies raising $15.7 billion. Seed funding decreased slightly, but early-stage funding grew by 6% year over year. Late-stage companies faced the biggest pullback in funding, declining by 36% year over year.
Two venture-backed companies went public in March, with both trading up significantly on their first day. Andreessen Horowitz and Y Combinator are raising new funds, indicating that venture capital remains an attractive asset class. Despite positive signals from AI and the fundraising environment, investors are still dealing with a liquidity shortfall from 2022, making it challenging for founders to secure funding. Overall, the cautious investor outlook persists even with signs of recovery.
