In Q4’24, global VC investment rose to a ten-quarter high of $108.6 billion, despite deal volume falling to 7,022. All thanks to companies investing in artificial intelligence (AI). Here's how things got better by investing in AI.
The Americas attracted $78.7 billion of this total, of which the US accounted for $74.6 billion. Europe attracted the second-highest level of VC funding, with $15.6 billion across 1,671 deals, surpassing the level of VC investment in the Asia-Pacific region for the first time; the Asia-Pacific region attracting $12.8 billion across 1,977 deals during Q4’24.
A record number of multi-billion dollar deals in the AI space propelled both the positive Q4’24 results and the year-on-year rise in VC investment. Five US-based AI companies attracted a total of $32.2 billion in Q4’24. Only two companies outside of the AI space saw $1 billion+ deals in Q4’24.
“The level of funding flowing into the AI space continues at an impressive pace,” Conor Moore, Global Head, KPMG Private Enterprise, KPMG International, said. He also highlighted, “VC investors are becoming more discerning however in doubling down on the truly disruptive companies with game-changing solutions. In a year that was full of uncertainty and somewhat lackluster deal-making, AI was far and away the standout superstar.”
2024—Key Highlights:
Global VC investment rose from $349.4 billion in 2023 to $368.3 billion in 2024.
VC investment rose from $173 billion to $221.7 billion between 2023 and 2024 in the Americas—including from $162.2 billion to $209 billion in the US; the Asia-Pacific region saw VC investment fall to a nine-year low of $78.8 billion in 2024.
Global CVC-participating investment rose from $177.9 billion in 2023 to $185.1billion in 2024.
The median deal sizes for Series B, C, and D+ deals rose substantially in both the Americas and Europe, with the median deal sizes of D+ deals rising the most dramatically—from $55 million to $100 million in the Americas and from $59.6 million to $80 million in Europe.
