CHART: A Look at the Global Funding in Q2 2024

• Global startup funding surged to $79 billion in Q2 2024, driven by a boom in AI investments.
• AI companies attracted $24 billion, marking the largest quarter for AI funding.
• Despite the Q2 increase, overall funding for the first half of 2024 dropped 5% compared to the same period in 2023.

The global startup funding landscape saw a mixed bag of fortunes in the first half of 2024. While the second quarter witnessed a notable surge in funding activity, the overall picture remains somewhat uncertain.

The venture capital funding experienced a noticeable surge in the second quarter of 2024, reaching $79 billion, a 16% increase from the previous quarter and a 12% rise compared to Q2 2023 according to Crunchbase.

This uptick in funding, largely driven by mega-rounds exceeding $100 million, was led by the AI sector, which for the first time since the debut of OpenAI's ChatGPT, dominated global investment.

AI companies attracted $24 billion in funding, accounting for 30% of the total dollars invested in Q2 marking the largest quarter for AI funding in recent years. Major players like Elon Musk's xAI and CoreWeave secured significant investments. Outside of AI, Healthcare and biotech was the second-largest sector, raising $17 billion, while Hardware and Financial Services companies followed.

Yet, while the rise in AI funding is a significant development, it doesn't necessarily indicate a broader recovery in the venture market. The first half of 2024, despite Q2's gains, saw a 5% decline in overall global funding compared to the same period in 2023. This volatility suggests that the market is not yet in full recovery mode, with growth being driven by sector-specific trends rather than widespread investor confidence.