TLDR:
- Global venture capital investment reached a five-quarter high in the second quarter of 2024, rising to $94.3 billion.
- Investments in artificial intelligence (AI) are on the rise, particularly in Europe, with a focus on companies developing basic AI technologies and those using AI to enhance business models.
In the second quarter of 2024, global venture capital investment reached a five-quarter high, climbing from $75.3 billion in the first quarter to $94.3 billion, as per the latest Venture Pulse 2024 report from KPMG. The surge is mainly attributed to significant investments of over $1 billion, with more than half being made in the field of artificial intelligence (AI). In Europe, investments in AI technology rose from $13.9 billion to $17.8 billion. In addition to basic AI technology development, investors are also supporting companies that apply AI to improve business models, such as customer experience monitoring and product development streamlining. Major AI investments were made in startups focusing on large language models and companies using AI in healthcare, biotechnology, and supply chain logistics.
The increase in AI-related venture capital investment underscores the ongoing optimism of investors in advanced technologies like large language models. This trend demonstrates the technology’s significance in the global economy. Germany, a top 10 European nation for venture capital investments, maintained its position with investments remaining steady at $2.2 billion in the second quarter of 2024. Notably, AI-driven deep tech firm DeepL secured around $300 million in funding. Venture capitalists in Germany showed particular interest in fintech companies, while investments in cryptocurrencies saw a decline compared to the previous quarter. Moreover, investors supported German ESG companies, primarily in the business-to-business (B2B) sector.
Germany’s continued presence among the top European investment hubs, with consistent investments and notable achievements in key technologies, highlights the nation’s thriving innovation landscape. The country’s emphasis on fintechs, sustainable ESG businesses in the B2B sector, and the success of companies like DeepL underscore Germany’s commitment to innovation.
