Global VC Investment Hits Five-Quarter High

Global venture capital (VC) investment rose significantly from $75.4 billion in Q1’24 to $94.3 billion in Q2’24, as reported by KPMG Private Enterprise’s Venture Pulse.

This growth was primarily driven by nine mega-deals, each exceeding $1 billion. Despite the increase in total investment, the volume of deals fell to 7,691, the lowest level since Q3’16, reflecting challenges such as high interest rates and geopolitical uncertainties.

AI investments were prominent in Q2’24, contributing to over half of the ten largest funding rounds globally. The most substantial deals included CoreWeave’s $8.6 billion and xAI’s $6 billion raises in the US.

“AI is really propelling global VC investment right now. The bold promises being made in the AI space are quite audacious and offer a wealth of opportunities for AI applications across a variety of industries and operational activities,” said Conor Moore, Global Head, KPMG Private Enterprise, KPMG International. “Although AI is dominating investments this quarter, it’s not the only sector to thrive. Cleantech and alternative energy have continued to raise good funds as well.”

Regional Investment Trends
In the Americas, VC investment surged to $58.3 billion, an eight-quarter high. The US dominated this figure, with $55.6 billion across 3,108 deals. Notable deals included CoreWeave, xAI, Scale AI, and Xaira Therapeutics.

Europe also saw a rise in VC investment, from $13.9 billion to $17.8 billion, while Asia experienced a decline to a seven-year low of $17.4 billion, mainly due to a slowdown in China. However, other regions like India, Singapore, and Japan showed investment growth.

Key Sector Performances
AI was the leading sector, accounting for over 20% of global VC funding in Q2’24. Significant investments included CoreWeave, xAI, and Scale AI in the US, Wayve in the UK, Mistral AI in France, and DeepL in Germany. In Asia, Zunyuan Supermarket and Zhipu AI were notable AI-focused investments.

The energy and cleantech sectors remained strong, attracting several $100 million+ deals. Highlights included Neta Auto in China, Nexamp in the US, and Highview Power in the UK.

Americas Investment Highlights
The Americas region saw a robust performance with $58.3 billion in VC investment. Beyond AI, significant raises included Juul’s $1.2 billion and Wiz’s $1 billion. Canada, Brazil, and Mexico also experienced increases in VC investment.

European Market Activity
VC investment in Europe rose to $17.8 billion. Key deals included Mistral AI and Highview Power, reflecting sustained interest in AI and cleantech sectors.

KPMG Private Enterprise, a division of KPMG International, offers a range of services and insights to private businesses, including the quarterly Venture Pulse report. Headquartered in Amsterdam, KPMG International was founded in 1987 and provides audit, tax, and advisory services globally. KPMG employs over 236,000 people and operates in 145 countries.