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.
AI powers VC investment in the US in Q4’24
During Q4’24, the US saw total VC investment rise to its highest level since Q2’22 as interest and investment in AI continued to be red-hot. The sector accounted for more than half of the country’s top ten deals, including the first $10 billion venture round ever seen in the US.
VC investment in the Americas reaches ten-quarter high
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.
VC investment in Europe rises quarter-over-quarter; annual total falls shy of 2023 results
VC investment in Europe rose in Q4’24, although the total investment in the region for 2024 fell short of 2023 results, highlighting the significant challenges experienced in the VC space over the last twelve months. The number of VC deals remained very low in Q4’24 as investors placed more capital in a much smaller number of proven, high-quality companies.
The UK attracted the largest share of VC investment in the region during Q4’24 helped by a $1.3 billion raise by AI-enabler data platform company GreenScale. The UK also attracted the most investment during 2024 as a whole, followed by France and then Germany.
VC investment in Asia falls to record lows
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.
