KPMG has released a new Venture Pulse report, a global overview of key trends in the venture capital market in the world for Q1 of 2024. Global VC investment dropped to $75.9 billion across 7,520 deals in Q1’24 due to geopolitical tensions, the lack of exits in the market, and a noticeable pullback in investment at the later deal stages.
AIN.Capital shares the key notes of the study.
VC investment in the Americas were higher than in Asia and Europe:
The US-backed companies attracted the largest share of VC investment globally in Q1’24, about $38.2 billion across 3,205 deals, including:
- a $4 billion raise by Anthropica;
- $704 million raise by battery materials company Ascend Elements;
- a $675 million raise by Figure AI;
- a $425 million raise by asthma-focused biotech Areteia Therapeutics;
- a $400 million raise by Mirador Therapeutics.
Asia attracted the second highest level of VC investment this quarter — $18.9 billion across 2,305 deals, led by three big raises in China:
- a $1.1 billion raise by EV company IM Motors;
- a $1 billion raise by AI-focused YueZhiAnMian;
- a $940 million raise by Yuanxin Satellite.
Europe saw VC investment increase slightly, reaching $17.9 billion across 1,798 deals. The largest deals in the region included:
- the $5.2 billion raise by Sweden-based green infrastructure company H2 Green Steel;
- a $431 million raise by UK-based neobank Monzo;
- a $415 million raise by Mistral AI in France, a $389 million raise by Netherlands-based grocery e-commerce company Picnic;
- a $334 million raise by France-based EV firm Electra.
Top areas for investments in Q1 2024:
- Generative AI remained a particularly hot area of interest for VC investors, both in terms of large language model driven solutions and solutions aimed at building generative AI capabilities into business verticals in order to drive real results and efficiencies. Ten of the world’s new unicorns in Q1 2024 were AI-focused startups.
- After dropping in late 2022 and 2023, investor interest in crypto and blockchain solutions globally increased again in Q1’24. As a part of this, VC firms have focused more due diligence on crypto and blockchain transactions and staffed up to ensure they fully understand potential opportunities.
- Due to global geopolitical tensions, interest in defense-focused technologies has continued to grow, particularly in areas like drone technologies, satellite technologies, and tech-based software solutions.
Europe showed small growth
- VC investment in Europe rose from $15.1 billilon in Q4’23 to $17.9 billion in Q1’24;
- The number of VC deals dropped considerably in Europe, faling from 2,419 deais in Q4’23 to 1,798 deals in Q1’24;
- The geographic diversity of VC investments also held strong during the quarter attracting, with 8 jurisdictions in the region, attracting at least one $100 million+ funding round in Q1’24, including Netherlands, France, Germany the UK, Spain, Israel, and Italy;
- The VC market in Austria continued to evolve in Q1’24, with a growing number of VC deals and increasing deal sizes compared to Q4’23, for example, during the quarter, Silotech raised a $20 million Series A round.
