VentureScope’s Post

GenAI might be trending, but it's not ruling the VC scene. Despite the hype, AI startups snagged just 20% of Series B and earlier funding recently. The rest of the startup world—biotech, manufacturing, and more—still commands a big share of venture capital. #venturecapital #VCmarket #VCfunding

The Q2 2024 State of Startups is out, revealing a noteworthy uptick in venture funding, hitting a five-quarter high of $79 billion! Mega-rounds and a sharp focus on AI have fueled this resurgence. Despite ongoing challenges, the return of active investors heralds a promising shift in the landscape. Dive into the 7 charts that detail this quarter's venture vitality. #InceptionToExit #LaunchFinance #LaunchYourStartup #StartupFunding #VentureCapital #AIRevolution #GlobalTrends2024

The Midas List for 2024 is now live!! Booming AI valuations like OpenAI's, and a small number of IPOs like Reddit, Inc.'s, return Sequoia Capital's Alfred Lin to the top spot, alongside 14 returnees and newcomers. Check out the full Forbes list, now in its 23rd year! Do you see any surprises? #venturecapital #VC #investing #privateequity #ForbesMidas #MidasList #tech #technology #startups #entrepreneurs #startupinvesting

In Q2 2024, AI startups led the venture capital scene, securing 28% of all VC funding and raising $18.3 billion. A strong focus is still on AI, despite a continued decline in the number of deals. Investors are opting for fewer but larger investments, indicating a more selective approach. As AI startups attract significant funding, are the risks being fully evaluated? Investors and stakeholders must consider job displacements, hiring biases, skills gaps, and broader economic and societal impacts. #AI #venturecapital #techtrends #economicimpact

At the Ai4 conference in Las Vegas, key figures from Citi Ventures, Pinegrove Capital Partners, Alumni Ventures, Blitzscaling Ventures, and Radical Ventures discussed the evolving AI market and how they are identifying promising startups. Here are some of the most important trends from the conference 👇 https://adweek.it/3YGshR5

Two years into a venture funding slowdown, a lift from mega-rounds and AI funding signaled a stronger quarter in Q2. And there are signs that active venture investors, who backed off from the peak volume of 2021, are picking up the pace a little. However, despite some good signals the overall outlook from the venture markets has not shifted. #vc #startups https://lnkd.in/gqiV-zbz

As a service provider to all kinds of startups, it continues to worry me that not enough non-AI startups are getting on the radar of VCs. Point in case, according to Crunchbase, AI-related startups secured $19 billion — or 28% of all venture dollars — last quarter. Could there be a market correction coming soon as much-hyped AI deals start to reveal the shortcomings of current LLMs, market complications related to navigating a global regulatory environment, and their questionable ability to deliver such staggering expected returns? #VCs #startupcapital #AIstartups https://lnkd.in/g_eR2YNY

Nearly a quarter of all venture funding now goes to AI startups, which has led to some worrying signs: a limited understanding of the technology, massive cash burns, poorly defined business models, and sky-high valuations. In other words, the signs of a bubble. On the other hand, non-AI startups are pushed toward profitability, with investors demanding clear progress. This dichotomy raises the question: which investment strategy is right? Should founders reconsider starting new ventures now? Despite the hype, investors and entrepreneurs focusing on fundamentals—market opportunity, operations, customer acquisition costs, cash burn, and exit strategies—have a chance to create significant value. Venture capitalists should be cautious with core AI startups but look for innovative ideas leveraging AI’s power. #VC #AI #Startup

TLDR from our recent State of Venture Report: -AI startups are dominating global funding, capturing 28% in Q2’24. This is the highest quarterly share on record. AI startups drew $18.3B in Q2’24 — up 32% QoQ — driven by mammoth $1B+ deals to Elon Musk’s xAI as well as Scale, CoreWeave, and others. -At $14.4M, the average deal size is up 17% this year so far vs. 2023. Even in a more cautious investing environment, the deals that do happen have ballooned in size as investors put more behind select startups. Full report in the comments!