TLDR:
- In August 2024, global venture funding dropped to $18 billion, the lowest monthly amount so far in the year.
- North American companies raised 66% of total global funding, with AI-related companies securing the highest funding amounts.
Venture Firms Take A Break In August With Lowest Monthly Funding In 2024
Global venture funding saw a significant decline in August 2024, reaching $18 billion, the lowest monthly amount recorded in the year. This marked a 36% decrease from the previous month and a 23% decrease from August 2023, which had seen $23.7 billion in funding. Despite this decline, it’s important to note that funding dips have been cyclical in this market and have not necessarily indicated a further slowdown in the industry.
North American companies, including those from the U.S. and Canada, dominated the funding landscape in August, securing 66% of total global funding. This proportion was one of the largest monthly shares for North American companies in the year so far. On the other hand, European startups raised only 7% of the total funding in August, the lowest monthly proportion for the region in 2024.
The AI sector emerged as the leading recipient of funding in August 2024, with AI-related companies raising $4.3 billion, accounting for 24% of the total funding. Healthcare and biotech companies followed closely behind, securing $3.5 billion in funding. The data also revealed a growing trend in AI funding, with approximately one in every four dollars invested in the industry so far this year.
Key fundings in August included Anduril, a defense tech company based in Los Angeles, which raised a substantial $1.5 billion in a Series F round. Other notable companies that secured large funding rounds were Groq, Kiteworks, Zepto, Magic, and Moonshot AI.
Despite the sluggish IPO market, companies are preparing for potential acquisitions. Notably, if Character.ai had been acquired for the $2.5 billion that Google paid its investors, it would have been the largest M&A deal in August, surpassing the $1 billion acquisition of New York-based ad tech platform Teads by Outbrain.
