TLDR
Key Points:
- Global venture capital funding reached just over $22 billion in April 2024.
- While funding is not slowing down, it’s not growing significantly either.
Global venture capital funding reached just over $22 billion in April 2024, according to Crunchbase data. This amount remained flat month over month and showed a slight increase year over year. Despite the boom in AI technology, funding in this sector has not accelerated significantly. Of the total funding in April, around $2.4 billion went to seed-stage companies, $9 billion to early-stage companies, and $10.7 billion to companies in Series C and above.
The largest funding round in April was a $1 billion deal for drug development using AI technology. Biotech and healthcare received the most funding in April, totaling $5.7 billion, followed by AI companies with $3.9 billion. Although the public markets saw several venture-backed companies go public, the number of companies listing for over $5 billion is still limited.
The AI revolution has led to the emergence of new startups, but larger companies are also adapting to this trend. The competition is fierce, with big tech companies investing billions in AI research and development. However, some startups specialized in generative AI are facing financial challenges. Valuations in the venture capital market are stabilizing as companies explore new AI use cases and increase their investment in cloud and GPU technologies.
Overall, while global venture capital funding is not slowing down, it’s not experiencing significant growth either. The industry is in a phase of transition as companies navigate the impact of AI technologies and adjust their strategies to stay competitive in the market.
