Highlights:
Global VC investment rose from $349.4 billion across 43,320 deals in 2023 to $368.3 billion across 35,684 deals in 2024 despite a multitude of challenges, including global conflicts and geopolitical tensions, uncertainties associated with a significant number of major elections—including the US presidential election in Q4’24 - and a protracted IPO drought. The Americas accounted for $221.7 billion of this total, its highest annual total outside of 2021 and 2022, according to the Q4’24 edition of KPMG Private Enterprise’s Venture Pulse—a quarterly report highlighting VC investment trends globally and in key regions around the world.
In Q4’24, global VC investment rose to a ten-quarter high of $108.6 billion, despite deal volume falling to 7,022—the lowest volume in a quarter in over ten years. The Americas attracted $78.7 billion of this total, of which the US accounted for $74.6 billion. Europe attracted the second-highest level of VC funding, with $15.6 billion across 1,671 deals, surpassing the level of VC investment in the Asia-Pacific region for the first time; the Asia-Pacific region attracting $12.8 billion across 1,977 deals during Q4’24.
A record number of multi-billion dollar deals in the AI space propelled both the positive Q4’24 results and the year-on-year rise in VC investment. Five US-based AI companies attracted a total of $32.2 billion in Q4’24, including Databricks ($10 billion), OpenAI ($6.6 billion), xAI ($6 billion), Waymo ($5 billion), and Anthropic ($4 billion). UK-based AI startup GreenScale also raised $1.3 billion during the quarter. Only two companies outside of the AI space saw $1 billion+ deals in Q4’24—US-based e-cigarette company Juul Labs almost $2 billion) and China-based cleantech CNNP Rich Energy ($1.1 billion).
VC investment in AI rose dramatically in Q4’24, driven by an outsized number of very large deals. US-based AI companies attracted the lion’s share of this investment, including the five largest deals of the quarter. In addition, AI startups also attracted the three largest deals in Europe, including UK-based Greenscale ($1.3 billion), Turkey-based Insider ($500 million), and France-based Poolside ($500 million). In Asia, AI-powered Didi Autonomous driving raised $298 million during the quarter.
VC investment in the Americas rose to a ten-quarter high of $78.7 billion in Q4’24, led by the $10 billion raise by US-based Databricks. The US accounted for $74.6 billion of this total. Despite the significant investment uptick, deal volume in the Americas fell to 3,178 deals—the lowest level since Q3’17; this total included 2,859 deals in the US, which saw the lowest level of deal volume seen since Q4’16. Outside of the US, Canada saw VC investment rise slightly from $2.4 billion to $2.5 billion between Q3’24 and Q4’24—marking the highest quarter of VC investment in Canada since Q1’22. VC investment also rose from $484 million to $586 million in Brazil, and from $423 million to $440 million in Mexico.
VC investment in Europe rose from a subdued $13.7 billion in Q3’24 to a more moderate $15.6 billion in Q4’24. Deal volume in the region remained very low—falling from 2,038 to 1,971 between Q3’24 and Q4’23. UK-based GreenScale attracted the largest deal of the quarter ($1.3 billion), followed by Turkey-based Insider ($500 million) and France-based Poolside ($500 million). Healthcare and biotech also saw solid funding, led by raises by Finland-based Oura ($200 million) and Switzerland-based Alentis Therapeutics.
The UK saw the largest amount of VC funding in Q4’24--$5.4 billion, followed by France (close to $2 billion) and the Nordics region (($1.6 billion). Germany faced a number of macroeconomic challenges in Q4’24, causing VC investment to fall to $1.4 billion—a level not seen since Q3’20; a $160 million Series B round by space-focused The Exploration Company was Germany’s largest raise of Q4’24.
VC investment in the Asia-Pacific region dropped to $12.8 billion across 1,977 deals in Q4’24—the lowest across both total investment and deal value that the region has seen in over ten years. Funding in the region dropped nearly across the board, with China seeing a drop from $10.3 billion to $5.8 billion between Q3’24 and Q4’24, India seeing a decline from $3.7 billion to $2.6 billion, and Japan seeing a drop from $2 billion to $1.3 billion. Australia saw a small uptick from $636 million to $716 million during the quarter. The largest deal of the quarter was a $1.1 billion raise by China-based CNNP Rich Energy, followed distantly by a $350 million raise by India-based Zepto, and a $298 million raise by China-based Did Autonomous Driving.
While there continues to be a fair bit of global geopolitical uncertainty, there is a growing sense of optimism heading into Q1’25, driven by the robustness of AI interest and investment, ongoing cuts to interest rates in several key jurisdictions, and signs of hope that the IPO market will rebound during 2025. AI will likely remain the biggest ticket for VC investors, although defensetech, healthcare and biotech, and cybersecurity will likely also continue to attract attention.
Heading into Q1’25, VC investors and startups will be watching the IPO market, particularly in the US, with keen interest. With macroeconomic conditions improving and some global uncertainties stabilizing, there is growing optimism that the exit environment will improve dramatically in 2025, particularly on the IPO side.
Daniel Caines,
Senior Manager, Global External Communications, KPMG International
T: +44 7732400262
E: Daniel.Caines@kpmg.co.uk
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