Venture Pulse Q4 2024

VC investment globally rose to the highest level in seven quarters in Q4’24, driven primarily by the ongoing surge in interest in AI. During the quarter, the AI space accounted for the five largest deals of the quarter, led by a $10 billion raise by Databricks.

The Americas saw VC investment rise to a ten-quarter high in Q4’24. This investment was driven primarily by a substantial increase in VC investment in the US, led by a $10 billion raise by AI firm Databricks.

Venture capital investment in Europe reached $85.3 billion across 8,626 deals for the year, representing the third-strongest annual total by investment value over the past decade. However, this strength in capital deployed contrasted sharply with deal activity, as annual deal volume fell to the second-lowest level seen in ten years. This divergence underscores a market increasingly defined by investor selectivity, with capital concentrated on fewer, larger transactions and a heightened emphasis on scale, profitability, and resilience.

VC investment in Asia plummeted during Q4’24 as all key jurisdictions in the region saw investors pressing pause. While China continued to attract the largest share of investment in the region, including the quarter’s largest VC deal — a $1.1 billion raise by alternative energy company CNNP Rich Energy — megadeals were in short supply in the country during the quarter. VC investment also fell in India and Japan, although the level of investment in Japan remained robust compared to historical trends.