KPMG Venture Pulse
Summary
KPMG's Venture Pulse report highlights a global VC investment increase to $368.3 billion in 2024, with AI sector emerging as a major investment driver despite reduced deal volumes.
Review
The KPMG Venture Pulse report provides a comprehensive overview of global venture capital investment trends in 2024, with a particular focus on the transformative impact of artificial intelligence. The report reveals a significant rise in overall VC investment from $349.4 billion in 2023 to $368.3 billion in 2024, despite a notable decline in deal volume to 35,685, the lowest in seven years. The most striking trend is the unprecedented investment in AI startups, with five US-based AI companies attracting a staggering $32.2 billion in Q4'24 alone, including major players like Databricks, OpenAI, and Anthropic.
The report highlights regional variations in VC investment, with the Americas (particularly the US) showing robust growth, while the Asia-Pacific region experienced a nine-year low in investments. The AI sector has emerged as the standout performer, demonstrating investor confidence in transformative technologies. Looking forward, the report suggests growing optimism for the IPO market in 2025, driven by improving macroeconomic conditions and continued interest in AI, defense tech, healthcare, and cybersecurity. The analysis provides valuable insights into the evolving landscape of venture capital, emphasizing the critical role of technological innovation in attracting investment.
Key Points
- Global VC investment reached $368.3 billion in 2024, with AI startups driving significant funding
- Deal volume dropped to a seven-year low of 35,685, indicating more selective investing
- US AI companies attracted $32.2 billion in Q4'24, highlighting the sector's investment potential
- Optimism for IPO market recovery in 2025 with improving economic conditions