Global enterprise funding fell last month to $18 billion — the lowest monthly funding level in 2024, Crunch Base show the data.
Funding fell 36% from the previous month and 23% from a yr earlier, from $23.7 billion in August 2023.
Until July of this yr, monthly funding totals exceeded $20 billion. However, in 2023, global funding fell below that quantity in February, July and December.
In this market, funding declines were cyclical and didn’t indicate a further market slowdown. In fact, Q2 was higher yr over yr, driven by mega rounds of $100 million and more, with some lively investors picking up the pace.
North American Stocks Rise
North American firms — including the U.S. and Canada — raised 66% of total global funding last month, one of the largest monthly shares this yr. Companies based in Asia raised about 25% of funding — in line with average results this yr but down from an average of 29% of world funding last yr. European startups raised 7% — the smallest monthly share this yr — down from an average of 17% this yr and 18% in 2023.
AI leads
The leading sector in terms of funding in August 2024 was AI-related firms, which raised $4.3 billion, or about 24% of funding. The second largest sector was healthcare and biotech firms, which raised $3.5 billion.
AI is a growing share of dollar volume, with about $1 in $4 invested in the industry this yr. In 2023, $1 in $5 went to AI-related firms. And in 2022, $1 in $10 went to the sector.
The largest funding last month went to a Los Angeles-based defense technology company On the sensorwhich raised $1.5 billion in Series F funding at a valuation of $14 billion, led by Founders Fund AND Sands Capital Ventures. This yr, five firms have raised funding rounds of $1.5 billion or more. One other company has raised greater than $10 billion, based in Massachusetts Devoted healthhealthcare for Medicare patients, raising one other $112 million in a Series E expansion, bringing the total to $13 billion.
Mountain View, California-based AI chipmaker raises large funding round Grok ($640 million), a San Mateo-based secure data sharing company Kite work ($456 million), Indian e-grocery Zepto ($340 million) based in San Francisco MagicAI coding startup ($320 million) and Beijing-based foundation modeling firm Moonshot AI ($300 million).
Outputs still slow
IPO markets are expected to stay subdued in 2024, at the same time as firms prepare. And mergers and acquisitions have not picked up as much as expected. If Character.ai was acquired for 2.5 billion dollars Google If it paid its investors, it could be the largest M&A deal in August, exceeding $1 billion Outbrain spent on acquiring a New York-based promoting technology platform Teas.
Note: After the July 2024 end date, we added the $5 billion funding round announced by Pendulum from its corporate parent Google. This adjusts July funding to $28.8 billion as of August 30, 2024.
Methodology
The data in this report comes directly from Crunchbase and is based on reported data. Reported data is as of September 4, 2024.
It is necessary to do not forget that data lags are most noticeable in the earliest stages of a enterprise’s life, and seed funding amounts increase significantly after the end of the quarter/yr.
Please note that each one funding values are reported in US dollars unless otherwise noted. Crunchbase converts foreign currency echange to US dollars at the prevailing spot rate from the date that funding rounds, acquisitions, IPOs, and other financing events are reported. Even if these events are added to Crunchbase well after the event is announced, foreign currency transactions are converted at the historical spot price.
Glossary of financing terms
As of January 2023, we have modified the way we include corporate funding rounds in our reporting. Corporate rounds are only included if the company has raised seed-stage equity funding through a series enterprise funding round.
Seed and angel consist of seed, pre-seed, and angel rounds. Crunchbase also includes undisclosed enterprise rounds, equity crowdfunding, and convertible bonds of $3 million (USD or USD equivalent after conversion) or less.
Early stage includes Series A and Series B rounds, in addition to other sorts of rounds. Crunchbase includes unspecified enterprise, corporate enterprise, and other rounds above $3 million and those lower than or equal to $15 million.
Late stage includes Series C, Series D, Series E and later enterprise rounds after “Series [Letter]” naming convention. Also included are enterprise rounds of unknown series, corporate ventures, and other rounds above $15 million.
Technology Development is a round of personal capital raised by a company that has previously raised funds in a enterprise round. (Basically any round from the previously defined stages.)