Although the broader VC funding market faces headwinds from geopolitical instability, economic uncertainty, and high interest rates, artificial intelligence, IT, biotech, and healthcare companies continue breaking records and raising more money than ever before.
According to data presented by Altindex.com, artificial intelligence, IT, biotechnology, and healthcare companies and startups raised over $377 billion in the first half of 2024, almost 70% more than in the same period last year.
Healthcare Companies Top in Total Funding Amount, but AI Startups Saw the Biggest YoY Increase The global economic headwinds have significantly impacted VC investors’ appetite in the past two years, causing the total value of deals in the global market to plunge by roughly 15%. Although the negative trend started loosening in 2024, VC investors remain cautious and selective, pouring most of their capital into artificial intelligence, IT, healthcare, and biotech companies. Unlike the broader market, which is still experiencing a mix of cooling trends and growth areas, these sectors have seen robust VC funding activity in the first half of the year, helping them set a new record.
According to Crunchbase data, companies and startups working in these four sectors raised a whopping $377 billion in the first six months of the year, or $153 billion more than in the same period of 2023. Over one-third of that value, or $128 billion, went to healthcare companies and startups, which top in total funding this year. Moreover, this represents a 40% increase compared to the total amount of money poured into this market in H1 2023. Statistics show IT and biotech companies and startups also raised over $100 billion in funding rounds during this period. IT companies raised $105.3 billion in funding rounds between January and June, or 174% more than last year. Their counterparts from the biotech sector follow with $103.5 billion of fresh capital and a 28% increase year-over-year.
Since the Nvidia boom, AI startups have become a new shiny object for VC investors, and that didn’t change in 2024. Although far below IT, biotech, and healthcare companies regarding the total value of raised money, AI startups saw the biggest year-over-year growth in VC funding activity. Statistics show that AI startups raised nearly $40 billion in H1, 211% more than in the first six months of 2023, and the highest H1 figure this market has ever seen. Moreover, this is $1.4 billion more than the total money VC investors brought to the AI sector in 2023.
So Far, Investors Poured over $3.2 Trillion in the Four Sectors
With more than $377 billion of fresh capital raised in the first half of 2024, the cumulative funding amounts in the four sectors skyrocketed to shocking highs. Crunchbase data show VC investors poured more than $3.2 trillion into AI, IT, biotech, and healthcare companies so far.
The healthcare sector tops the list with $1.1 trillion raised in funding rounds. Biotech companies come in second with $977 billion raised so far, and their IT and AI counterparts follow, with $895 billion and $230 billion, respectively.
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