TLDR:
- Q2 saw a significant increase in VC investment, with a focus on AI startups.
- Global venture funding is up for the second quarter in a row, with a 8 percent growth QoQ.
Q2 venture capital investment data indicates positive trends for the market. CB Insights’ State of Venture Report highlights the dominance of AI startups in attracting investments, with 28% of all VC dollars going to AI companies, reaching the highest quarterly share on record. This surge in investment in AI startups resulted in $18.3 billion being invested in Q2, showing a significant 32% increase QoQ.
Additionally, global venture funding has seen growth for the second consecutive quarter, with a 8% increase QoQ. Despite the increase in funding, deal volume is still lower than previous peaks, but deal sizes have risen by 17%, averaging $14.4 million per deal, reflecting investors’ interest in supporting select startups.
In terms of exit activity, the US and Europe accounted for 39% of global exits each, showing a 4% increase QoQ. However, investment in startups in Asia declined, with China experiencing a significant drop in investments. On the positive side, India, Singapore, and Japan saw an increase in investment.
Juniper Square’s analysis of the PitchBook-NVCA Venture Monitor First Look for Q2 suggests signs of a recovery, with 155 successful VC fund closings in the quarter. While it is crucial to observe data for Q3 before confirming a recovery trend, the current data portrays a hopeful outlook for the future of venture capital investment.
