Half of All US Startup Investments
Investment in European and Asian Startups Declines
The venture capital (VC) industry invested $97 billion (approximately 141 trillion KRW) in U.S. artificial intelligence (AI) startups last year.
On the 7th (local time), Bloomberg News cited data from market research firm PitchBook, reporting that out of the $209 billion (approximately 304 trillion KRW) raised by U.S. startups last year, about half?$97 billion?was concentrated in AI companies. This represents the largest share ever recorded.
Bloomberg evaluated that AI-focused deals are accounting for an increasingly larger portion of all startup investments.
Key companies include OpenAI, the developer of ChatGPT, which raised $6.6 billion in October last year, and xAI, led by Tesla CEO Elon Musk, which raised a total of $11 billion throughout the year. Anthropic secured $4 billion in strategic investments from Amazon and others, while Databricks raised $10 billion.
The total funding raised by startups increased by about one-third compared to 2023. Venture capital raised $76.1 billion (approximately 111 trillion KRW) through 508 funds, which is the lowest number of funds since 2014 and the lowest amount since 2019.
Bloomberg explained that this reflects polarization within the venture capital industry. Stable, large-scale companies found it easier to raise funds, and sizable, high-profile startups also attracted capital with ease. While cash is pouring into AI companies, ordinary startups in previously popular sectors like enterprise software are struggling to secure funding.
So-called exits, including startup initial public offerings (IPOs) and mergers and acquisitions (M&A), reached $149.2 billion (approximately 217 trillion KRW) in 2024, an increase of about $30 billion compared to 2023. This is the same level as in 2022.
Meanwhile, venture capital and startups outside the U.S. experienced a difficult year. According to PitchBook, European startup funding decreased from $66.7 billion (approximately 97 trillion KRW) in 2023 to $61.6 billion (approximately 90 trillion KRW) in 2024, while funding in the Asia region dropped from $100.1 billion (approximately 146 trillion KRW) in 2023 to $75.9 billion (approximately 110 trillion KRW) in 2024.
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