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Tag: pitchbook

  • If you’re not an AI startup, good luck raising money from VCs | TechCrunch

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    New PitchBook data illustrates how dramatically AI is dominating startup investment, with 2025 on-track to become the first year when AI accounts for more than half of all VC money invested.

    PitchBook reports that VCs have poured $192.7 billion into the industry so far this year, out of a total $366.8 billion, according to Bloomberg. In the most recent quarter, AI accounted for 62.7% of the money invested by U.S. VCs, and for 53.2% of money invested by global firms.

    Most of that money is going to marquee names like Anthropic, which announced a $13 billion Series F in September. Meanwhile, the number of startups and venture funds successfully raising money are at their lowest levels in years — PitchBook says that 823 funds have been raised globally so far in 2025, compared to 4,430 in 2022.

    PitchBook’s director of research Kyle Sanford told Bloomberg that the market is becoming “bifurcated,” where “you’re in AI, or you’re not” and “you’re a big firm, or you’re not.”

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    Anthony Ha

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  • 'Mega-deals' could be inflating overall AI funding figures | TechCrunch

    'Mega-deals' could be inflating overall AI funding figures | TechCrunch

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    It’s safe to say that VCs struck while the iron was hot this year where it concerned generative AI.

    While venture capital investments overall fell compared to last year thanks to macroeconomic challenges and other related factors, startups in the generative AI space — and AI more broadly — did quite well.

    Funding for AI-related startups surpassed $68.7 billion in 2023, according to PitchBook, with generative AI vendors like OpenAI, Stability AI and Anthropic accounting for a substantial portion of that figure. And it appears that the sector will likely close the year with substantially higher investments than the past couple of years.

    But could the top-level numbers be misleading?

    A report on AI investment in Q3 by PitchBook, released this morning, found that “mega-deals” (i.e., multi-hundred-million-dollar investments from big-name backers) vastly inflated deal totals this year.

    For example, just a few months ago, Amazon pledged to invest up to $4 billion in Anthropic, the company developing the AI-powered chatbot Claude. OpenAI secured a $10 billion investment from Microsoft (albeit not all at once and partly in the form of cloud compute credits). Inflection AI, a firm creating what it describes as more “personal” AI assistants, raised $1.3 billion in a funding round led by Microsoft. The list goes on.

    In Q3, VC funding inclusive of mega-deals totaled around $22.1 billion. But after subtracting the tech-giant-led tranches secured by generative AI startups, the total is closer to $15.1 billion for the sector.

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    Kyle Wiggers

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  • Can AI lift our spirits? | TechCrunch

    Can AI lift our spirits? | TechCrunch

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    The last quarter in venture capital was quite gloomy. Even AI didn’t change the picture that much, but its impact is starting to show in other ways. 

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    Anna Heim

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