News Digest:

Despite an uptick in the April-June quarter, startup funding has panned lower levels compared to the past three years. Global funding declined 5% to $147 billion in the first half of 2024 compared to the second half of 2023, says a news report.

The tight monetary policies in the US contributed significantly to the slow revival of IPOs, which is the largest source of returns for institutional private investors who fund startups and sell their holdings when the enterprise hits the market.

However, the report noted that AI-led startups saw investments touch $24 billion from April to June, doubling from the previous quarter. At the same time, overall startup funding grew 16% to touch $79 billion, largely due to the AI-led push, and has in some ways taken the lead over healthcare and biotech.

However, investors and big tech companies are clear that meaningful gains from their investments in artificial intelligence were likely to materialize only after a few years.

End Notes

Source: https://www.reuters.com/technology/artificial-intelligence/ai-startup-funding-more-than-doubles-q2-crunchbase-data-shows-2024-07-09/