TLDR:
- US venture capital funding reached $55.6 billion in Q2 2024, the highest in two years, driven by investments in AI.
- While deal activity is up, exits remain challenging, with Q2 2024 exit values falling to $23.6 billion.
US venture capital funding soared to $55.6 billion in Q2 2024, marking a 47% increase from the previous quarter. The revival in funding was largely fueled by investments in artificial intelligence companies, such as Elon Musk’s xAI and CoreWeave. However, despite the increase in deal activity, exit values declined in Q2 2024, underscoring the need for more tech companies to go public to sustain returns. The robust investments in AI highlight market interest, but the lag in exits poses challenges for sustaining investor confidence. Large firms like Andreessen Horowitz continue to dominate fundraising, but the industry remains cautiously optimistic about consistent exit opportunities.
