CHART: A Look at the North American Startup Funding Landscape in Q2 2024

• North American startup funding soared to $45.3 billion, a 35% increase year over year.
• AI startups attracted $16.8 billion in Q2, led by Elon Musk's xAI with a $6 billion Series B.
• Late-stage investments rose 11% YoY, while Early-stage investments posted the sharpest gain of 56% YoY

In the second quarter of 2024, North American startup funding experienced a notable uptick, driven largely by early-stage investments in artificial intelligence.

Investors poured $45.3 billion into seed through growth-stage financings for U.S. and Canadian startups, marking a 30% rise from the previous quarter and a 35% increase year over year according to Crunchbase Data.

AI Dominates Sector Investments

While funding has not yet returned to the heights of 2021, the venture ecosystem is steadily recovering from its low point late last year. However, this recovery is uneven, with AI dominating the investment landscape, echoing a trend seen globally.

AI-focused startups alone attracted $16.8 billion in Q2, with Elon Musk’s xAI accounting for over a quarter of all early-stage funding.

Despite the overall rise in funding, investment in sectors like enterprise software, consumer products, and fintech remains muted. Additionally, the number of reported deals declined, reaching the lowest point in years.