Last quarter was a mixed bag for AI start-ups raising capital
It was a record quarter in terms of investments although deal flow was down.
Chris Metinko writes in this recent Crunchbase News article that “last quarter was a great quarter if you were a founder of an AI (artificial intelligence)-related start-up looking for funding” with this caveat at the end: “maybe.”
On the positive side, he cites Crunchbase data showing AI start-ups received more money in Q2 than ever before, raising a staggering $24.2 billion in 1,001 deals. That amount is more than what AI start-ups raised in the first quarter and also about twice what was raised in the same quarter last year. In total halfway through 2024, AI start-ups raised $35.6 billion, a 24 percent increase from the $28.7 billion in the first six months of 2023.
“While the pure size of the dollar figure is eye-catching — and the largest ever amount raised by AI start-ups in a single quarter — what may be most interesting is the actual deal count,” Metinko observed. “The barely more than 1,000 deals announced last quarter was the lowest total for rounds going to AI-related start-ups in years. However, what the quarter lacked in quantity, it more than made up for in megadeals.”
He notes that 34 nine-figure rounds were raised by AI start-ups, led by xAI, which officially announced its long-awaited $6 billion fundraise.
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