Global venture capital investment fell to a nearly five-year low in the first quarter of 2024, reaching $75.9 billion due to volatile markets and reduced late-stage funding.
The path of a superpower
Investment peaks
Despite the general decline, individual industries have attracted significant capital investment. Artificial intelligence and eco-technologies took the leading positions, and the biggest deals of the quarter were related to these areas. In particular, the American company Anthropic attracted $4 billion, while the Swedish H2 Green Steel received $5.2 billion.
Advanced technologies
The unprecedented development of AI solutions has given rise to a dozen new unicorns, most of which are based in the US. At the same time, there is growing interest in security technologies, especially in the areas of drones, satellite and software systems.
Territorial distribution
The leadership in attracting investments is maintained by North and South America with $38.2 billion, distributed among 3,205 agreements. Asia ranks second with $18.9 billion in 2,305 transactions, while Europe shows growth to $17.9 billion.
Future trends
Upcoming quarter expected IPOs and mergers and acquisitions. Companies that will not be able to attract additional financing will become potential targets for M&A. At the same time, investors will continue to focus on artificial intelligence, eco-technologies and security solutions.
Glossary
- KPMG is an international network of independent firms providing audit, tax and consulting services services
- Anthropic is an American company specializing in the development of artificial intelligence.
- H2 Green Steel is a Swedish company that produces steel using hydrogen instead of coal.
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Answers to questions
What was the total amount of global venture capital investment in the first quarter of 2024?
Which industries attracted the most investment during this period?
Which region topped the rating by the volume of venture investments?
How has global investment with the participation of corporate venture capital changed?
What forecasts and expectations of experts for the second quarter of 2024?
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Discussion of the topic – Global venture capital investment has seen a sharp decline in 2024
A recent report by KPMG found that in the first quarter of 2024, the volume of global venture capital investment amounted to only $75.9 billion, the lowest figure in almost five years. Investors are focusing their attention on artificial intelligence, clean and safe technologies.
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Дмитро
To be honest, these numbers do not surprise me. 🤷♂️ Due to geopolitical instability and economic difficulties, venture capital investment has, of course, fallen. But I'm glad that AI and environmental technologies are attracting the attention of investors.
Софія
I am attracted by the prospect of security and environmental technologies. 💚 Do you remember how in 2023 Ukraine launched the production of unmanned aerial vehicles? I wonder if investments in this area will grow.
Юрій
In my opinion, the decline of venture investments is a signal for a more thorough study of the market. 🤔 Even if global trends go down, there will always remain promising niches with growth potential.
Василь
Nasty fashion for artificial intelligence. 😒 Instead of useful inventions, these stupid billionaires invest money in some ghosts. It would be better to support traditional industries, such as agriculture or mechanical engineering.
Ганна
Vasylka, you are always such a skeptic! 😄 Artificial intelligence is the future and you should invest in it. Look at the success of Anthropic and Figna AI - they are changing the game!
Франсуа
I think security technologies will also be in high demand in the near future. 🛡️ Given the geopolitical tensions, governments and companies need reliable solutions in the field of cyber security, satellite systems and more.
Марія
I worry that overinvestment in AI could lead to a concentration of power in the hands of a few large companies. 😕 Let's not forget about the risks associated with this technology and the importance of its ethical application.
Томас
What do you think about environmental technologies? 🌱 I think this is a very promising industry for investment, especially in view of climate change and the need for sustainable development.