Q3’24 Venture Pulse Report

At the end of Q3’24, the number of early-stage unicorn companies — companies with valuations over $1 billion — has already exceeded the number seen during all of 2023. This large uptick despite the current uncertain macroeconomic and geopolitical environment has been propelled almost entirely by activity in the AI space, with a number of early-stage AI companies obtaining unicorn valuations on their first major raises. While the number of new unicorns remained well below levels seen during the outlier years of2021 and 2022, it highlights the focus on the AI sector and how VC investors are pouring money into the space even as they take a far more cautious approach to their other investments.

AI is expected to remain a very hot area of investment, although there could be a shakeout as investors increasingly focus on companies able to show how they are using AI to generate real value. Regulation of AI activities will also be a major area to watch over the next several quarters, as governments and regulators increasingly prioritise the need to develop guardrails for AI activities, whether they are focused on safety, privacy, or appropriate use.

While alternative energy solutions have garnered strong interest from VC investors over the last two years — although total investment has fallen off over the last couple of quarters — interest could spike further over the next year given how global energy demand is skyrocketing and predicted to outpace supply.

• VC investment slows — falling back to $70.1 billion
• Down and flat rounds continue — representing over 20% of deals
• Median deal sizes edge upwards
• Valuations for rebound for late-stage deals
• M&A remains main exit route as IPOs stay on hold
• Top 10 deals globally split among 6 countries

All currencies are in US dollars.