Last year's global venture capital investments exceeded the figures of 2023 ($349.4 billion) and increased to $368.3 billion. The artificial intelligence sector became the leader in raising investment, and the year was also successful for defense tech startups.
This is stated in the KPMG Private Enterprise Venture Pulse report. Although the value of venture capital investments increased, the total number of deals fell to a seven-year low of 35,685.
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The Americas region dominated with $221.7 billion, of which $209 billion came from the United States. This is the third highest figure in the last 20 years.
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The Asia-Pacific region fell to its lowest level in nine years, with venture capital funding totaling only $78.8 billion.
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In Europe, the UK became the leader in terms of venture capital funding in 2024. France ranked second, ahead of Germany.
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In the Nordic countries, despite only $5.5 billion in investments in 2024, interest in healthtech, defensetech, and energy was renewed in the fourth quarter.
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Sharp growth of corporate venture capital (CVC) - global corporate venture capital investments rose from $177.9 billion in 2023 to $185.1 billion in 2024, in particular, in the United States - from $84.7 billion to $107.5 billion.
The AI industry holds the lead in raising investments. In Q4, the five largest AI startups in the US received a total of $32.2 billion. For example, Databricks ($10 billion) or OpenAI ($6.6 billion).
European startups have also received significant investments, including the British GreenScale ($1.3 billion), as well as Insider (Turkey, $500 million) and Poolside (France, $500 million). However, the EU Artificial Intelligence Act and a number of other laws and recommendations currently under consideration create uncertainty about the rules for AI companies. And this uncertainty has slowed down investment.
As for Ukrainian companies, they are also closely following the development of AI and integrating it into their strategies, says Illya Segeda, Head of Mergers and Acquisitions Advisory Services, KPMG Ukraine.
“According to the Digitalization Champions 2024 study, 94% of Ukrainian companies plan to implement AI technologies, and 71% are investing in cloud services. At the same time, cybersecurity and operational efficiency remain key priorities. The main challenges to digital transformation are the shortage of IT specialists and uncertainty about the return on investment.”
2024 was a breakthrough year for defense tech. Amid the war in Ukraine and escalating global geopolitical tensions, governments are cooperating more actively with Defense Tech companies. Especially those that integrate artificial intelligence into military solutions.
In terms of IPOs, the total value of IPOs in 2024 reached its lowest level in seven years, amounting to $134.6 billion. Despite the decline in the number of IPOs last year, market experts expect an increase in activity in 2025.
It is said that many companies are ready for an initial public offering, but are waiting for the right time. If the world sees a few unicorns successfully enter the market, it could form a long line of those ready to follow.
Experts expect venture capital investments to remain high in 2025, and AI will continue to be the main driver of funding. In addition to AI, there will be a growing interest in the Defense Tech, cybersecurity, healthcare, and biotechnology sectors.
