Global enterprise funding in 2024 exceeded 2023 totals, with AI showing the largest year-over-year jump in amounts. Total startup funding in 2024 reached nearly $314 billion — up from $304 billion in 2023 — an increase of about 3%, in response to an evaluation of Crunchbase data.
Global enterprise investment in 2024 was higher than pre-pandemic levels in 2019, but lower than in 2018 and 2020, at $346 billion and $350 billion, respectively.
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A breakthrough 12 months for AI
One thing was clear: 2024 was a breakthrough 12 months for financing artificial intelligence corporations.
Nearly one-third of all global enterprise funding went to corporations working in AI-related fields, making AI the leading funding sector. Funding for AI-related corporations has reached greater than $100 billion, up greater than 80% year-over-year from $55.6 billion in 2023, in response to Crunchbase data. Funding for the AI sector in 2024 exceeded all funding levels in the last decade, including the peak global funding 12 months in 2021.
Of these AI dollars, almost a third of all AI funding went to model corporations.
The remaining two-thirds of the funds went to sectors affected by the recent models. The infrastructure and data provision for managing and operating artificial intelligence has expanded. Other leading sectors include autonomous driving, healthcare, robotics, skilled services, security and military, in response to Crunchbase data.
Focus on Q4
The higher 2024 total was driven by a strong increase in the fourth quarter, which saw the highest total funding amount since the economic downturn in the third quarter of 2022. The fourth quarter was $93 billion, up 36% year-over-year from $69 billion in the fourth quarter of 2023, based on Crunchbase data evaluation.
In recent years, the fourth quarter has typically been slower. However, the fourth quarter of 2024 ended with the largest rounds raised this 12 months – $22 billion by three corporations.
High values, billions of dollars
In 2024, most of the funding went into billion-dollar rounds, largely coming from AI sector funding. In 2024, $58.3 billion – or 19% of total financing – went into billion-dollar rounds. Compare that to 2023, when $45.8 billion – or 15% of funding – went into rounds of $1 billion or more.
The fourth quarter gained momentum, reaching the highest valuations achieved last 12 months. OpenAI received a valuation of $157 billion. Data cubes was valued at $62 billion in this 12 months’s largest enterprise deal of $10 billion. AND xAI doubled its valuation in six months to $50 billion.
It’s no surprise that last 12 months’s largest funding rounds went to corporations in the AI sector – not only Databricks, OpenAI and xAI, but also Waymo AND Anthropic has raised at least $4 billion in funding – or much more.
Other major valuations included corporations from the AI industry CoreWeave ($19 billion), Anthropic ($18.4 billion), Anduril Industry ($14 billion), AI scales ($13.8 billion) i Embarrassment ($9 billion).
The USA gained, Silicon Valley gained momentum
Total enterprise funding for U.S. corporations was $178 billion, representing roughly 57% of total global funding. The U.S. financing market captured a larger share of global financing, up from 48% in 2023.
Of all U.S. funds, $90 billion was invested in the San Francisco Bay Area corridors, which have experienced a boom in AI investment. Compare that to 2023, when Bay Area corporations raised a total of $59 billion in funding.
Late phase of the boom in the fourth quarter
Late-stage financing in the fourth quarter reached $61 billion, up greater than 70% quarter-over-quarter and year-over-year growth from $36 billion invested in the fourth quarter of 2023, They show Crunchbase data. The biggest change in the fourth quarter in comparison with the previous 12 months was the increase in the number of billion-dollar rounds. Large funding has been raised across multiple sectors such as artificial intelligence, applied artificial intelligence, energy, semiconductors, banking, security and aviation, among others.
Apartment at an early stage
Early-stage funding remained unchanged in the fourth quarter. Large early-stage rounds went into data centers, renewable energy, artificial intelligence, robotics and biotechnology.
The seeds settled
For now, seed financing stays in the fourth quarter. Seed funding reached $7 billion in the fourth quarter, down 16% from the $8.4 billion invested a 12 months ago. (However, seed funds are often added to the Crunchbase dataset after the quarter close and should increase over time.)
Liquidity retention
2024 has been a slow 12 months for exits.
M&A activity increased barely in comparison with 2023, but was slower than expected and was somewhat focused on biotechnology and cybersecurity corporations.
Of the Magnificent Seven,Microsoft, Alphabet AND Amazon hired AI teams from AI overkill, Character.ai AND AI supporteraccordingly, as the regulatory environment made strategic transactions difficult. Nvidia was the most lively 2024 buyer in this cohort.
The IPO market – also slow in 2024 – ended on a positive note with an unexpected rally from the stock exchange ServiceTitan An IPO that has been over 40% above the IPO price since the recent 12 months.
Opening of IPO markets in 2025 will impact LP allocation to enterprise ventures, said Beezer Clarksonpartner in Sapphire venturesin an interview. “History shows very clearly that when there is positive liquidity, more money goes into venture funds,” she said.
Methodology
The data in this report comes directly from Crunchbase and is based on reported data. The data provided is from January 3, 2025.
Please note that data transfer delays are most noticeable in the earliest stages of a enterprise, with seed funding amounts increasing significantly after quarter/12 months end.
Please note that every one financing amounts are in US dollars unless otherwise noted. Crunchbase converts foreign currency to U.S. dollars at the spot rate in effect on the date financing rounds, acquisitions, IPOs and other financial events are reported. Even if these events were added to Crunchbase long after the event was announced, foreign currency transactions are converted at the historical spot price.
Glossary of financing terms
Seeds and Angels consist of seed, pre-seed and angel rounds. Crunchbase also includes enterprise rounds of unknown series, equity crowdfunding, and convertible notes with a size of $3 million (in U.S. dollars or a U.S. dollar equivalent) or less.
The early stage consists of Series A and Series B rounds, as well as other types of rounds. Crunchbase includes enterprise rounds of unknown series, corporate ventures and other rounds above $3 million and those valued at lower than or equal to $15 million.
The Late Stage consists of Series C, Series D, Series E, and later lettered expedition rounds following the “Series [Letter]“Naming convention. Also included are enterprise rounds of unknown series, corporate ventures and other rounds valued at greater than $15 million. Corporate rounds are only included when a company has raised seed financing as part of a series enterprise financing round.
A technology development is a private equity round led by a company that has previously raised a “venture” round. (Basically any round from the pre-defined stages.)