AI Startups Break Funding Records, Raise $33B in First Half of 2024, US

Date:

Updated: [falahcoin_post_modified_date]

In a surprising turn, AI startups have defied predictions of a funding slowdown for 2024, setting a new record with $33 billion raised in the first half of the year. This marks the highest H1 figure in the market’s history, according to data from Stocklytics.com.

Following the Nvidia boom, AI startups have become a magnet for venture capital, attracting significantly more investment than other sectors. Crunchbase data reveals that over the past three years, AI companies have secured more than $150 billion in funding, with 2021 previously holding the record at $48 billion.

In 2022, VC investments in AI amounted to $32.7 billion, increasing to $37.2 billion in 2023. This year, 2024, is on track to set a new record, with nearly 90% of last year’s total raised in just the first six months.

The first quarter of 2024 saw $8.2 billion invested in AI startups, nearly 80% more than the $4.6 billion invested during the same period last year. However, this figure pales in comparison to the second quarter, where VC funding skyrocketed by 240% year-over-year to an unprecedented $24.8 billion. This surge brought the total H1 funding to $33 billion, a 177% increase from the same period in 2023.

Interestingly, while the total funding amount has surged, the number of investments has decreased, indicating that AI startups are securing larger amounts of capital in fewer funding rounds. Crunchbase data shows 516 VC investments in AI startups in the first half of 2024, down from 569 in the same period last year.

With the latest influx of $33 billion, the cumulative funding for AI startups has reached nearly $214 billion. The United States leads this trend, accounting for over 60% of the total with $130.3 billion, and California being the primary driver. Asian AI startups follow with $48.5 billion, and European companies close behind at $27.4 billion.

Machine learning startups have attracted the most funding, totaling $110.6 billion to date. AI software startups and information technology startups follow with $73.2 billion and $53.1 billion, respectively.

[single_post_faqs]
Shreya Gupta
Shreya Gupta
Shreya Gupta is an insightful author at The Reportify who dives into the realm of business. With a keen understanding of industry trends, market developments, and entrepreneurship, Shreya brings you the latest news and analysis in the Business She can be reached at shreya@thereportify.com for any inquiries or further information.

Share post:

Subscribe

Popular

More like this
Related

Revolutionary Small Business Exchange Network Connects Sellers and Buyers

Revolutionary SBEN connects small business sellers and buyers, transforming the way businesses are bought and sold in the U.S.

District 1 Commissioner Race Results Delayed by Recounts & Ballot Reviews, US

District 1 Commissioner Race in Orange County faces delays with recounts and ballot reviews. Find out who will come out on top in this close election.

Fed Minutes Hint at Potential Rate Cut in September amid Economic Uncertainty, US

Federal Reserve minutes suggest potential rate cut in September amid economic uncertainty. Find out more about the upcoming policy decisions.

Baltimore Orioles Host First-Ever ‘Faith Night’ with Players Sharing Testimonies, US

Experience the powerful testimonies of Baltimore Orioles players on their first-ever 'Faith Night.' Hear how their faith impacts their lives on and off the field.