The first quarter of 2024 saw significant momentum in global venture capital funding, which grew by approximately 16% quarter over quarter, reaching $89 billion distributed across 4,600 deals .This growth was most pronounced in the US , which experienced a substantial 72% increase in funding, driven by large investments in technology , AI , energy , and healthcare . China also saw a 13% increase in quarter-over-quarter funding, particularly in the automotive and AI sectors . In contrast, Europe reported a 28% decline in funding, primarily due to ongoing macroeconomic uncertainty and the UK’s technical recession. Deal sizes increased across all funding stages, with early-stage deals recording the highest growth at 43% quarter over quarter. Seed- and late-stage deals also saw sequential growth of 17% and 21% , respectively. Series B deals surged, propelled by investments in generative AI, clean energy, and healthcare. The number of corporate Venture Capital (CVC) investors remained stable, but there was a noticeable increase in CVC-funded deals, especially in early- and seed-stage deals within the energy, AI, and healthcare sectors. Generative AI continued to dominate the venture capital landscape. While foundation and large language models attracted the lion’s share of funding due to their capital-intensive nature, other AI categories experienced robust growth. An increasing number of non-tech CVCs, including LG Technology Ventures, CVS Health Ventures, and Capital One Ventures, led deal activity globally over the past year. There has also been a notable rise in partnerships between corporates and start-ups to make generative AI more accessible to customers. Overall, the start of 2024 has been marked by vibrant growth in specific regions and sectors, particularly in AI and clean energy.

The evolving venture capital landscape in Q1 2024 is not only marked by sectoral shifts but also by the increasing reliance on alternative funding methods as traditional VC funds become more challenging to secure. Startups are adapting to financial uncertainties by exploring avenues such as bridge loans and convertible notes, demonstrating a pragmatic approach to sustaining growth amidst economic volatility. This shift underscores the resilience of founders in navigating a more conservative investment environment, where capital efficiency and strategic financial planning have become paramount. Despite concerns surrounding the availability of traditional VC funding, there remains an underlying optimism about future opportunities, particularly for startups that exhibit strong leadership, operational resilience, and a clear path to profitability. The ability to secure funding in this climate is largely contingent on a startup’s performance, product-market fit, and long-term viability, as illustrated by successful funding rounds for companies like DeepL and Fashion Cloud, both of which have demonstrated the capacity to attract substantial investment despite macroeconomic headwinds. These examples reinforce the idea that well-positioned businesses, particularly those leveraging cutting-edge technology and addressing pressing market needs, continue to find strong backing from investors willing to bet on innovation. Moreover, the broader venture capital market has exhibited remarkable growth, with global funding in Q1 2024 reaching an impressive $89 billion across 4,600 deals, showcasing a dynamic investment climate despite regional disparities. Notably, while Europe has experienced a downturn in funding activity, both the U.S. and China have seen significant increases, suggesting that investor confidence remains robust in key global markets. A particularly striking trend within this period is the rise in average deal sizes, especially in early-stage and Series B investments, where artificial intelligence, healthcare, and clean energy have emerged as dominant sectors of interest. The increasing role of corporate venture capital further highlights the diversification of investment strategies, with major corporations actively participating in funding rounds as they seek to secure strategic stakes in disruptive innovations. Among these trends, the continued dominance of generative AI remains a defining theme, with investors recognizing its potential to reshape industries ranging from enterprise software to creative content production. The report’s insights into these developments provide a crucial roadmap for understanding venture capital strategies in 2024, highlighting how investors are shifting their focus toward scalable technologies with long-term market potential. This evolving funding landscape not only reflects changing economic conditions but also signals a broader transformation in how startups approach capital raising, strategic growth, and resilience in a fluctuating market.,