TLDR:
North American startup investment perked up in Q1 of 2024, with $35.2 billion in venture funding, a 14% increase from Q4. Late-stage funding remains below year-ago levels, while early-stage funding saw a boost. Deal volume decreased by 8% from the prior quarter.
Summary:
After several months of tightened purse strings, North American startup investors saw a slight increase in funding in Q1 of 2024, totaling $35.2 billion, up 14% from the previous quarter. Although still down from the previous year, the late-stage funding remains lower than before. The early-stage funding, on the other hand, saw an increase with several large rounds for biotech, AI, and climate tech companies. Deal volume decreased by 8% from the prior quarter, with investors participating in 2,435 known rounds at all stages. While late-stage and technology growth rounds attracted the most money, there was a boost in activity at the early stage. Seed investment saw the sharpest decline of any stage in Q1. On the exit front, the IPO market saw renewed excitement with debuts of Reddit and Astera Labs, while there were also a few significant acquisitions. Overall, the data suggests cautious optimism for a recovering startup investment climate.
Key Takeaways:
- North American startup investment in Q1 of 2024 totaled $35.2 billion, a 14% increase from the previous quarter
- Late-stage funding remains below year-ago levels, while early-stage funding saw a boost
