Venture capital (VC) funding in the artificial intelligence (AI) sector has seen notable growth in 2024, establishing itself as one of the most attractive sectors for investors.
Key Points
In Q2 2024, VCs invested $25.3 billion in AI, marking a 30% increase over Q1.
80% of investments were allocated to companies in early stages (Seed and Series A), which demonstrates the interest in emerging technologies.
The United States continues to dominate investments in AI, although countries like China and the European Union are showing significant growth in attracting funds due to the consolidation of public policies and high investment in research and development.
Startups and more established projects in AI continue to receive strong investments, with a particular emphasis on innovative solutions in machine learning, natural language processing, and automation.
Pablo Rutigliano, founder of Atómico 3, explained that the funding rate in the AI sector is showing signs of slowing down. We are seeing a shift where larger investments tend to be more selective, which could indicate a reversal in the overall trend. This could mark the beginning of a period where future growth expectations are not as optimistic.
However, he added that, once this cycle is overcome, and depending on the evolution of technology, the AI market could begin to "adjust its course", potentially leading to a new phase driven by more cautious and concentrated investment.
How Does VC Funding in AI Work?
AI funding through VC generally follows several stages:
Seed Funding: In this phase, investors provide initial capital for research, prototype development, and validation of disruptive ideas in AI.
Series A, B, C, etc.: During later funding rounds, companies seek additional resources to scale their technological solutions, attract specialized talent, and expand globally.
Evolution of VC Investment in AI in 2024
During the first half of 2024, VCs invested more than $25.3 billion in AI, reflecting robust growth in the sector. Investments in AI are primarily focused on areas such as business process automation, generative AI, and the use of AI in sectors such as healthcare, education, and finance. The average size of each investment deal increased to $5.6 million, a clear sign of growing interest in projects with strong long-term potential.
Valuations of AI companies also showed an upward trend, with the average valuation of companies reaching $150 million, reflecting growing investor confidence in the disruptive impact of AI across various industries.
Maria Fernanda Juppet, CEO of CryptoMKT, stated that during the year 2025, we expect funding in cryptocurrencies and artificial intelligence to follow a trend of consolidation and specialization. In the crypto sector, funds will increasingly focus on projects with solid fundamentals, regulatory compliance, and solutions that provide scalability and real adoption. The market no longer rewards speculative narratives, but rather the building of robust infrastructures and services that connect with the traditional economy.
How Will VC Funding in AI Evolve in 2025?
VC funding in AI is expected to continue growing in 2025, with a greater focus on the consolidation of technology companies that have already reached an advanced level of development. Series B and C rounds are likely to see an increase as companies seek capital to scale AI solutions globally.
The AI market will also see an intensified focus on industrial applications, from manufacturing automation to the mass adoption of AI in customer service, logistics, and cybersecurity. Additionally, public policies in countries like the United States, the European Union, and China are expected to further drive AI development through tax incentives, research support, and the implementation of regulatory frameworks.
New technologies such as explainable AI, the use of neural networks for improving industrial processes, and advancements in creating more ethical and sustainable AI models will receive significant focus in investment rounds. However, investors are also expected to be more cautious, given the inherent risk of rapid technological advancement.
In summary, 2025 is shaping up to be a year of consolidation for VC in AI, with a focus on strengthening the infrastructure of technology companies, as well as leveraging growth in international markets and emerging sectors. As AI continues to redefine innovation, venture capital will remain key to driving its development and adoption at a global scale.