The total amount of funding for startups ticked up for the year, rising by about one-third from 2023. Meanwhile, VCs themselves raised US$76.1 billion for 508 funds, the lowest number since 2014, and the lowest dollar amount since 2019.
The numbers demonstrate the ongoing bifurcation in venture: Large, established firms have found it easier to raise money, as have some of the biggest, buzziest startups. While more cash gets lavished on AI companies, many plain-vanilla startups in formerly hot sectors like enterprise software are having trouble raising money at once achievable valuations, reflecting a longstanding post-pandemic trend in the industry.
A closely watched metric of initial public offerings and acquisitions of startups — also called exits — brought in US$149.2 billion for the year, almost US$30 billion more than 2023 and about the same as 2022.
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VCs and start-ups outside the US had a more difficult year. Start-up funding in Europe declined to US$61.6 billion in 2024, compared with US$66.7 billion in 2023, PitchBook found. And deals in Asia declined to US$75.9 billion from US$100.1 billion in 2023.
