TLDR:
- Healthcare and biotech received the most venture funding in Q1 2024, surpassing AI.
- Global funding reached $66 billion, with healthcare and biotech companies acquiring 24% of the total.
As hype surrounding generative AI continues, the biggest venture funding category in the first quarter of 2024 turned out to be healthcare and biotech, not AI. According to Crunchbase, healthcare and biotech companies received $15.7 billion in funding, narrowly beating out AI which raised $11.4 billion. Overall global funding in Q1 2024 reached $66 billion, with a decline of 20% compared to the same period in 2023. Notable startups in the biotech sector include San Diego-based Mirador Therapeutics, Diagonal Therapeutics, and Alterome Therapeutics, which raised significant amounts in recent funding rounds.
While AI is still a prominent sector, corporate consolidation has been driving much of the funding activity. Microsoft and Amazon made significant acquisitions in the AI space. In addition, there has been a resurgence in funding for crypto startups, with Paradigm raising a large fund for new investments amidst a 70% increase in investment in crypto companies compared to the previous year.
