TLDR:
- Global funding reached $79 billion in Q2, driven by mega rounds and AI funding.
- The funding outlook remains challenging for founders despite the uptick in activity.
Two years into a venture funding slowdown, a lift from mega-rounds and AI funding signaled a stronger quarter in Q2. Active venture investors are showing signs of picking up the pace slightly. However, founders still face hurdles in raising funding. Global funding peaked in the past year, reaching $79 billion, driven by mega rounds of $100 million and above, along with a competitive AI investment runup. Funding to the AI sector doubled to $24 billion, led by billion-dollar fundings in various companies. U.S. and Canadian startups experienced the highest quarter for funding since Q1 of the previous year, with North American funding reaching $45.3 billion. Conversely, funding to Asia saw a decline, with startups raising $14.6 billion, the lowest since 2015. Europe surpassed Asia in quarterly funding for the first time in a decade, reaching $16 billion, with a noticeable bump in late-stage funding. South and Central American startups saw a decrease in funding compared to Q2 2021, with funding reaching $791 million. Overall, the funding landscape presents challenges for founders, despite positive trends in certain regions and sectors.
