TLDR:
- Venture capital investment reached $89 billion globally, a 16% increase from the last quarter of 2023.
- The United States led this growth, with a 72% increase driven by investments in technology, AI, energy, and healthcare.
Venture capital investment saw a significant boost in the first quarter of 2024, reaching $89 billion globally. The United States led this growth, with a 72% increase compared to the previous quarter, fueled by investments in technology, AI, energy, and healthcare. Generative AI continues to dominate the venture capital landscape, as large language models require significant funding. While China also saw an increase in investment, Europe experienced a 28% decline due to macroeconomic uncertainty and a technical recession in the UK.
The average size of venture capital deals increased across all funding stages, with early-stage investments growing by 43% and seed-stage deals rising by 17%. Late-stage deals also saw a 21% increase. The study by Bain & Company highlights the growth of Series B stage deals, particularly in sectors such as AI, renewable energy, and healthcare. Corporate Venture Capital investors remained stable, with an increase in deals funded by these vehicles, especially in energy, AI, and healthcare sectors.
Alvaro Pires, a partner at Bain & Company, notes the trend of non-tech private equity firms joining the generative AI trend. Companies like LG Technology Ventures, CVS Health Ventures, and Capital One Ventures have led this activity globally. The growth of collaborations between startups and established companies to incorporate generative AI into customer experiences has been significant.
