Venture Firms Take A Break In August With Lowest Monthly Funding In 2024

Global venture funding slowed last month, reaching $18 billion 鈥� the lowest monthly funding so far in 2024, data shows.

Funding was down month over month by 36% and year over year by 23% from $23.7 billion in August 2023.

Through July this year, monthly funding totals were each above $20 billion. However, in 2023 global funding dipped below that amount in February, July and December.

In this market, funding dips have been cyclical and not an indication of a slower market slowing further. In fact, Q2 was up year over year driven by mega rounds of $100 million and more, with some active investors increasing their pace.

North America鈥檚 share hike

North American companies 鈥� which includes the U.S. and Canada 鈥� raised 66% of total global funding this past month, amongst the largest monthly proportion this year so far. Companies based in Asia raised around 25% of funding 鈥� in line with averages so far this year but down from an average of 29% of global funding last year. European startups raised 7% 鈥� the lowest monthly proportion this year 鈥� down from an average of 17% this year and 18% in 2023.

AI leads

The leading sector for funding amounts in August 2024 went to AI-related companies, which raised $4.3 billion, around 24% of funding. The second-largest sector, healthcare and biotech companies raised $3.5 billion.

AI is a growing proportion of dollar volume, with around 1 in 4 dollars invested in the industry so far this year. In 2023 1 in 5 dollars went to AI-related companies. And in 2022 1 in 10 dollars went to this sector.

The largest fundings this past month went to Los Angeles-based defense tech company , which raised a $1.5 billion Series F funding at a value of $14 billion, led by and . So far this year, five companies have raised rounds of $1.5 billion or more. And one other company raised above a $10 billion value, with Massachusetts-based , healthcare for medicare patients, raising a further $112 million in a Series E extension, at a value of $13 billion.

Large rounds were raised by Mountain View, California-based AI chipmaker ($640 million), San Mateo-based secure sharing company ($456 million), India-based e-grocery ($340 million), San Francisco-based , an AI coding startup, ($320 million), and Beijing-based foundation model company ($300 million).

Exits still sluggish

The IPO markets are expected to continue on a low note in 2024, despite companies readying themselves. And M&A hasn鈥檛 quite picked up as much as was expected. If had been acquired paid its investors, it would have been the largest M&A deal in August ahead of the $1 billion spent to acquire New York-based ad tech platform .

Note: After the end of July 2024, we added a $5 billion funding round announced by from its corporate parent Google. That adjusts funding for July to $28.8 billion as of Aug. 30, 2024.

Methodology

The data contained in this report comes directly from SA国际传媒, and is based on reported data. Data reported is as of Sept. 4, 2024.

Note that data lags are most pronounced at the earliest stages of venture activity, with seed funding amounts increasing significantly after the end of a quarter/year.

Please note that all funding values are given in U.S. dollars unless otherwise noted. SA国际传媒 converts foreign currencies to U.S. dollars at the prevailing spot rate from the date funding rounds, acquisitions, IPOs and other financial events are reported. Even if those events were added to SA国际传媒 long after the event was announced, foreign currency transactions are converted at the historic spot price.

Glossary of funding terms

As of January 2023, we have made a change to how we include corporate funding rounds in our reporting. Corporate rounds are only included if a company has raised an equity funding at seed through a venture series funding round.

Seed and angel consists of seed, pre-seed and angel rounds. SA国际传媒 also includes venture rounds of unknown series, equity crowdfunding and convertible notes at $3 million (USD or as-converted USD equivalent) or less.

Early-stage consists of Series A and Series B rounds, as well as other round types. SA国际传媒 includes venture rounds of unknown series, corporate venture and other rounds above $3 million, and those less than or equal to $15 million.

Late-stage consists of Series C, Series D, Series E and later-lettered venture rounds following the 鈥淪eries [Letter]鈥� naming convention. Also included are venture rounds of unknown series, corporate venture and other rounds above $15 million.

Technology growth is a private-equity round raised by a company that has previously raised a 鈥渧enture鈥� round. (So basically, any round from the previously defined stages.)