Key Points
- US AI startups attracted a record $97 billion in funding last year. AI accounted for nearly half of the raised by US startups in 2024.
- Total startup funding rose by one-third compared to 2023. VC fundraising has declined to its lowest levels since 2014 in fund count and 2019 in dollar amount.
- US startup exits generated $149.2 billion, matching 2022 levels.
- Europe and Asia saw declines in startup funding compared to 2023.
Venture capital investment in artificial intelligence startups in the United States reached an unprecedented $97 billion last year, setting a new record. Major funding rounds for companies such as Elon Musk’s xAI, OpenAI, and Anthropic contributed significantly to this surge.
According to newly released data from PitchBook, nearly half of the $209 billion raised by US startups in 2024 was funneled into AI-focused firms, marking the highest proportion on record.
Total startup funding in the US increased by about one-third compared to 2023, underscoring the industry’s growing focus on AI innovation. However, venture capital firms themselves raised only $76.1 billion across 508 funds, the lowest count since 2014 and the smallest dollar amount since 2019.
This reflects a shifting landscape in venture capital, where large, established firms and high-profile startups have found it easier to attract funding, leaving smaller or less trendy sectors, such as enterprise software, struggling.
Exit activity, including initial public offerings and acquisitions, also rose. Startups earned $149.2 billion from exits, nearly $30 billion more than in 2023 and matching the levels seen in 2022.
Outside the US, however, the picture was less optimistic. European startup funding fell to $61.6 billion, down from $66.7 billion the previous year, while Asian deals dropped sharply to $75.9 billion from $100.1 billion in 2023. This highlights a stark contrast between the robust AI-driven momentum in the US and the challenges startups face globally.