TLDR:
- Global venture funding increased by 8% to $65.7 billion in Q2 2024.
- Average deal size rose by 17% to $14.4 million, with investors focusing on larger investments.
According to the latest State of Venture report from CB Insights, global venture funding saw a rise of 8% in Q2 2024, reaching $65.7 billion. However, the number of deals continued to decline for the ninth consecutive quarter, with only 6,230 deals recorded. The average deal size also increased by 17% to $14.4 million, indicating a trend where investors are concentrating their funds on fewer but larger investments. AI startups emerged as the major focus of venture capital, capturing 28% of all VC funding in Q2 2024. These startups attracted $18.3 billion, marking a 32% increase quarter-over-quarter.
In terms of exits, the US and Europe each accounted for 39% of global exits, while venture funding in Asia experienced a significant decline of 13% in Q2 2024. China was particularly affected, with funding decreasing by more than half quarter-over-quarter. Notable investments included IPOs from Tempus and Rubrik in the US, valued at over $5 billion each, as well as Hyundai’s acquisition of Motional for $4.1 billion.
Countries like India, Singapore, and Japan saw increases in funding, while the rest of the venture ecosystem faced challenges. CB Insights highlighted the continued dominance of AI startups in the venture capital landscape, with investors focusing on larger investments. As the year progresses, the report provides insights on sectors, top investors, and emerging trends in the second half of 2024.
