Stories of Technology, Innovation, & Entrepreneurship in the Southeast

Knoxville Business News Tennessee Mountain Scenery Background
June 10, 2024 | Tom Ballard

Venture funding shows uptick in May

Not unsurprising, firms in the artificial intelligence sector led the rebound, capturing 40 percent of venture funding.

Another month but with more positive numbers.

According to this article in Crunchbase News, venture funding rebounded in May to reach $31 billion, the highest monthly tally so far in 2024. Investment was up more than 40 percent month-over-month and 29 percent year-over-year, with artificial intelligence (AI) leading as the sector that raised the most funding. In fact, companies in the AI sector raised 40 percent of venture funding in May with $12.5 billion invested across more than 250 companies, based on an analysis of Crunchbase data. Elon Musk‘s xAI raised close to half of that amount.

Other leading sectors were healthcare and biotech companies, which raised $5.1 billion, and financial services companies, which raised $3.9 billion last month.

Gené Teare, the article’s author, cautions that “the increase in funding in May does not signal a growth in venture funding in future months. In the current slower funding environment, month-to-month funding tends to fluctuate, with large fundings raised predominantly by companies in the AI sector or late-stage unicorn companies.”

Like what you've read?

Forward to a friend!

Don’t Miss Out on the Southeast’s Latest Entrepreneurial, Business, & Tech News!

Sign-up to get the Teknovation Newsletter in your inbox each morning!

  • This field is for validation purposes and should be left unchanged.

No, thanks!