US VC Trends 2024 — Q4 Report (EY)
Summary
- VC-backed companies raised over $62.2 billion in Q4 2024, a 57% increase from Q3 2024.p.2
- Four large AI deals accounted for $26.6 billion, with AI-driven fundraising increasing by fivefold since Q4 2023.p.2
- Total investment in US VC-backed companies reached over $180 billion in 2024, up 27% from 2023.p.2
- Annual deal volume dropped below 10,000 deals in 2024 for the first time since 2012.p.2
- Fund formation lagged for a second consecutive year, failing to reach $100 billion.p.3
- Information technology dominated sector activity in Q4 2024, accounting for 66% of all invested dollars.p.5
- The San Francisco Bay Area led regional funding in Q4 2024, capturing $39.4 billion.p.6
Key insights
- AI deals represented over 60% of all VC fundraising in Q4 2024.p.2
- Mega-round deal count increased by 21% quarter-over-quarter, representing 74% of all capital deployed.p.4
- Information technology investment accounted for 48% of overall US VC funding in 2024.p.5
- Renewable energy investment grew by over fivefold in Q4 2024.p.5
- AI investments are expected to capture 45% of all VC funding in 2025.p.6
- An estimated $4.1 trillion remains tied up across 55,000 companies in the US startup ecosystem.p.7
- A survey of entrepreneurs indicated that 91% plan to fundraise over the next 18 to 24 months.p.7
Topics and entities
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