So much for that AI funding slowdown

February 22, 2024

Hi, Agen. Got an idea for a generative AI startup? Great, here’s a really big check! Just kidding. But that’s almost how it seems to be going for AI startups lately. Crunchbase data shows both that funding to AI-related startups has again blown up this month and that while few early-stage unicorns were minted last year, a third of those young new billion-dollar startups came from the generative AI sector. Plus, here are five areas where seed investors are active.

👁️ Eye On AI: So much for that funding slowdown

The first three weeks of February saw more than $2.6 billion invested into artificial intelligence startups, including a half-dozen rounds of $100 million or more.

Related Crunchbase Pro list: Rounds Raised By Startups Using AI In 2024

🦄 Where did all the young new unicorns go?

Clearly, the days when you could get a billion-dollar valuation largely based on an interesting startup idea and a good pitch to investors are over. Crunchbase data shows only 29 new unicorns were minted last year after a seed, Series A or Series B round. (One exception? You guessed it: Generative AI startups overperformed in the new early-stage unicorn ranks.)

🌱 5 areas where seed investors are active

From construction tech to AI health diagnostics to spacetech our data shows seed-stage investors have been funding young startups across an array of fascinating industries.

➕ Why VCs should set up entrepreneur collectives

A network of entrepreneurs offering mentorship to portfolio companies gives venture investors a better chance of success. It’s also hugely advantageous to a fund’s reputation and financial standing, argues Eugene Malobrodsky of One Way Ventures.

💰 What those really big seed rounds tell us

Seed rounds of $5 million or more, once virtually unheard of, have become more common in recent years. Last year alone Crunchbase identified more than 1,500 angel, seed or pre-seed financings that met or exceeded this level.

Related Crunchbase Pro list: Seed Rounds Of $5 Million Or More

🤝 Crunchbase announces new partnership with monday.com

Now, monday sales CRM users can enrich their CRM records with Crunchbase’s best-in-class proprietary company data to quickly identify qualified opportunities and inform outreach. Find out more here.

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