Monday, December 23, 2024

Global VC funding rises in November thanks to AI and multi-billion dollar deals

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Global venture funding totaled $28 billion as of November 2024, according to data from Crunchbase. This is down from the $32 billion raised in October 2024, but up from the $21 billion raised in November 2023.

More than a third of last month’s funding came from just three companies that each raised rounds of $1 billion or more: AI-based model companies xAI and Anthropic, and high-quality engineering testing service Tricentis.

Seed-stage and early-stage funding both declined year-over-year, according to Crunchbase data. Total seed funding last month was just over $2 billion, down about a third from a year ago. Meanwhile, early-stage funding in November was down more than 20% compared to the same period last year.

However, late-stage funding doubled year-over-year due to large funding rounds.

Billions of dollars raised exceeds

Over the past two years, the proportion of billion-dollar deals has increased. According to data from Crunchbase, so far in 2024, about 16% of global venture funding deals are over $1 billion and are concentrated in the AI ​​space. This is a slight increase from 2023, when 15% of total venture funding came from rounds of $1 billion or more, and from 2022, when rounds of similar size accounted for just 5% of VC investments. ​​The rate has also increased significantly.

Funding AI

More than half of November’s venture investments went to companies in the AI ​​space, reaching a monthly high of more than $14 billion. The funding went to AI startups working in multiple areas, including robotics, security, healthcare, marketing, developer tools, autonomous driving, and chip infrastructure.

Crunchbase’s data analysis shows that while investment volume overall increased in November, seed, Series A, and Series B deals had a weak month.

Seed funding was at its strongest during the 2023 recession and into 2024. As we head into 2025, will early-stage fundraising shrink further due to the small number of small and medium-sized funds that have closed this year?

methodology

The data included in this report comes directly from Crunchbase and is based on reported data. Data reported is as of December 3, 2024.

Note that data lag is most noticeable in the early stages of venture activity, when the amount of seed funding increases significantly after the end of a quarter or year.

Please note that all funding amounts are expressed in U.S. dollars unless otherwise stated. Crunchbase converts foreign currencies to U.S. dollars at the prevailing spot rate from the date the financing round, acquisition, IPO, or other financial event is reported. Foreign currency transactions are converted at historical spot prices, even if events are added to Crunchbase long after they are announced.

Fundraising glossary

Starting in January 2023, we’ve changed the way a company’s funding rounds are included in reporting. Corporate rounds are only included if a company has raised seed equity funding through a Venture Series funding round.

Seed and Angel consists of Seed, Pre-Seed, and Angel rounds. Crunchbase also includes venture rounds of unknown series, equity crowdfunding, and convertible debt of up to $3 million (in U.S. dollars or converted U.S. dollar equivalents).

The initial phase consists of Series A rounds and Series B rounds, as well as other round types. Crunchbase includes unknown series venture rounds, corporate ventures, and other rounds above $3 million and under $15 million.

Later stages consist of Series C, Series D, Series E, and later character venture rounds following the “Series (Character)” naming convention. Also included are unknown series venture rounds, corporate ventures, and other rounds over $15 million.

Technology growth has been raised in private equity rounds by companies that previously raised “venture” rounds. (So ​​basically all rounds of previously defined stages.)

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Illustration: Dom Guzman

Stay up to date on recent funding rounds, acquisitions, and more with Crunchbase Daily.

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