Tuesday, 29 August 2023

Clock ticks for these startups to raise again

Plus, AI doubles shares of startup investment

August 29, 2023

Hi, Agen. We have good news and bad news. First, the good: If you’ve incorporated AI into your business, chances are you’re doing better than the average startup. Funding to startups that include artificial intelligence has doubled so far this year, Crunchbase data shows. Now for the bad: Our data also suggests many boom-era startups will face a fundraising cliff in 2025.

A fundraising cliff may be on the horizon

How long ’til it’s too late? That’s the question facing many early-stage startups that last raised funding during the 2021 boom times and now face a drought. A Crunchbase data analysis suggests that the window for many Series A startups looking for their Series B is getting smaller.

🤖 AI’s share of U.S. startup funding doubles

While most startup sectors are seeing less investment, it seems companies in those industries that have compelling AI pitches are doing better at securing funding. In fact, more than 1 in 4 dollars invested in an American startup this year has gone to an artificial intelligence-related company.

Related Crunchbase Pro list: US Funding To AI-Related Startups

💸 6 startup fundraising tips from an investor

When it comes to fundraising, some of the things investors take for granted aren’t obvious to founders, writes Brad Pruente of Prime Movers Lab. He shares six key pieces of advice for startup entrepreneurs pitching potential investors.

💶 European VC investment beats a retreat

European venture funding halved in the second quarter of 2023 compared to a year earlier, and was down two-thirds from the peak two years ago, Crunchbase data shows. Hardest hit: Late-stage startups, which saw funding plummet 64%. Will a successful IPO by Arm, the British chip designer, reinvigorate the European funding scene?

💰Top 10: These startups hauled in $1.9B last week

We had to check our calendars last week to make sure we aren’t still living in the free-money days of 2021. Eight funding rounds to U.S. startups last week topped nine figures — and three of those were more than a quarter-billion dollars. Let’s look at where the big bucks went.

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