TLDR:
- Startup investors were cautious in Q1 of 2024, with some exceptions in AI, healthcare, energy, and robotics startups.
- Overall global funding remained subdued, but early-stage funding saw growth.
In the first quarter of 2024, startup investors exhibited caution with their investments, as shown by data from Crunchbase. While there were some exceptions with significant investments in AI, healthcare, energy, and robotics startups, the overall tone was one of hesitancy as the year began. Here are 11 key charts that provide insights into the state of startup funding in early 2024:
Global startup investment in the first quarter of 2024 experienced its second-worst quarter since 2018, indicating a cautious approach from investors. Although there was an improvement from the previous quarter, it was mainly due to Q4 2023 being the worst quarter in six years. The largest share of venture capital investments in North America was allocated to AI and healthcare startups, driving those sectors to lead in global investment totals for Q1.
Despite the overall subdued funding environment, investment in early-stage startups globally actually grew during the first quarter, with funding totaling around $29.5 billion, marking a 6% increase year-over-year. The growth was primarily driven by substantial Series B fundings in AI, electric vehicles, and green energy. Seed and angel investment also held up better compared to late-stage funding, offering optimism for a strong cohort of funded younger companies ready for growth as the recovery progresses.
Venture capitalist Marc Andreessen’s firm, a16z, emerged as a leader in the new funding environment in Q1 of 2024. A16z participated in the highest number of post-seed funding rounds compared to any other venture investor, with notable activity in the startup investment space. Cybersecurity, while not recession-proof, showed resilience in Q1, with venture investors pouring $2.7 billion into 154 deals back cybersecurity startups, marking the industry’s best funding quarter in three quarters.
Asia-based startup funding decreased in Q1, falling to $17.3 billion, representing the lowest funding amount in the region for a single quarter since Q4 2016. However, Chinese startups saw an increase in funding in Q1, driven by several significant rounds in areas such as electric vehicles, artificial intelligence, and low-orbit broadband satellite networking.
Startup funding in Latin America experienced a decline in the first quarter of 2024, with both dollar investment levels and deal counts decreasing. Despite the overall challenging funding scene in the region, Colombian startups stood out with a significant increase in investment compared to the prior quarter.
Meanwhile, European startup funding remained relatively steady, reaching $11.8 billion in Q1 of 2024. While there
