- Global VC investment drops from $95.5 billion to $70.1 billion quarter-over-quarter
- AI accounts for six of ten largest VC deals globally in Q3'24, led by the only two $1 billion+ raises
- Americas accounts for nearly 60% of VC investment in Q3'24, with $41.4 billion in deal value
- Japan and Germany buck geographical trend with Japan recording a VC investment twelve-quarter high.
HONG KONG SAR -
Media OutReach Newswire - 28 October 2024– Global VC investment fell from a five-quarter high of $95.5 billion in Q2'24 to a nearly seven-year low of $70.1 billion in Q3'24, amid ongoing geopolitical conflicts, the continued exit drought, anticipated seasonal lulls in investment in several key jurisdictions, and the uncertainty driven by the upcoming US presidential election. The decline came despite another solid quarter of VC investment in AI; the sector accounted for six of the ten largest VC deals globally, including a $1.5 billion raise by Anduril Industries and a $1 billion raise by Safe Superintelligence, according to the Q3'24 edition of
KPMG Private Enterprise’s
Venture Pulse — a quarterly report that shines a spotlight on VC investment trends globally and in key jurisdictions around the world. While the Americas continued to attract the largest share of VC investment in Q3'24, total investment in the region still fell from $58.6 billion in Q2'24 to $41.4 billion in Q3'24. In Asia, VC investment fell from $18.5 billion to $15.6 billion quarter-over-quarter, while in Europe it dropped from $17.9 billion to $12.5 billion. Global exit value fell to a six-quarter low of $39.2 billion, driven primarily by a slowdown in US-based exit activity—which fell from $25.2 billion to $11.2 billion between Q2'24 and Q3'24, as the number of exits fell to a seventeen-quarter low of 244. Asia, which saw a five-year low of $11.2 billion in exit value in Q2'24, saw exit value jump to $18.2 billion in Q3'24. "AI investments drove the lion's share of VC investment activity in Q3'24," said
Conor Moore Global Head, KPMG Private Enterprise, KPMG International. "But even within AI, a lot of deals were somewhat smaller than we've seen in recent quarters. This reflects somewhat of a trend in investors shifting their focus from core AI companies focused on LLMs (Large Language Models) and the like to companies with highly targeted industry solutions. Defense-tech was also a big winner in this quarter, in addition to biotech."
Q3'24—Key Highlights Global VC investment dropped from $95.5 billion in Q2'24 to $70.1 billion in Q3'24; the number of VC deals dropped from 9,270 to 7,227 over the same period. VC investment in the Americas dropped from $58.6 billion in Q2'24 to $41.4 billion in Q3'24—including from $55.5 billion to $37.5 billion in the US; in Asia, VC investment dropped from $18.5 billion to $15.6 billion, while in Europe it dropped from $17.9 billion to $12.5 billion. Global corporate VC investment fell from $54 billion to $35.2 billion between Q2'24 and Q3'24; this included declines from $34.4 billion to $19.6 billion in the Americas—including from $32.7 to $17.8 billion in the US—from $10.7 to $9.4 billion in Asia, and from $8.5 billion to $5.9 billion in Europe. Global exit value dropped from $52.9 billion in Q2'24 to $39.2 billion in Q3'24. Exit activity in Asia rose from $11.2 billion to $18.2 billion quarter-over-quarter, while it fell from $25.4 billion to $11.2 billion in the Americas, and from $16.3 billion to $9.8 billion in Europe. Global fundraising activity was well off the pace needed to match even 2023's subdued total of $202.8 billion; at the end of Q3'24, global fundraising stood at $143.1 billion.
AI sector sees six of the top ten deals globally in Q3'24, including largest deal in every key region While VC investment could be considered low in all regions of the world this quarter, AI continued to garner a lot of interest in Q3'24. Six of the ten largest deals during the quarter were AI focused, including a $1.5 billion raise from US-based Anduril Industries, a $1 billion raise by US-based Safe Superintelligence, a $688 million raise by China's Baichuan AI, a $$640 million raise by US-based Groq, a $500 million raise by Canada-based Cohere, and a $483 million raise by Germany-based Helsing. While core AI firms continued to attract VC investments during Q3'24, including Safe Superintelligence, Baichuan AI, and China-based Moonshot AI ($300 million), VC investors also showed very strong interest in AI-driven industry solutions. In particular, AI-powered defense-tech companies raised large rounds in Q3'24, including Anduril Industries and Helsing. China also saw AutoAI, which enables automotive companies to embed AI into their vehicles, raise $107 million.
Americas attracts $41.4 billion in VC investment in Q3'24; investment in Canada more than doubles VC investment in the Americas fell from $58.6 billion across 4,104 deals in Q2'24 to $41.4 billion across...
