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Equity

Global startup funding is picking up with AI still in the spotlight

Equity

TechCrunch

Founders, Silicon Valley, Finance, Ipo, Vc, Technology, Business News, Startups, Business, Venture Capital, News, Stock Market, Entrepreneurship, Techcrunch

4.2365 Ratings

🗓️ 31 July 2024

⏱️ 25 minutes

🧾️ Download transcript

Summary

Global startup funding was up 16% in the second quarter, according to Crunchbase data, led by an uptick in mega-rounds. That increase was led, unsurprisingly, by the AI sector. Funding to companies in AI made up 30% of all dollars invested and actually doubled quarter over quarter to $24 billion. On today's episode of TechCrunch's Equity podcast, Mary Ann was joined by Gené Teare, a Senior Data Editor at Crunchbase and Crunchbase News, to talk through the numbers. Teare is a well-known analyst of the global venture capital market, and was instrumental to Crunchbase’s early life and remains one of its more tenured staffers. “I was actually quite shocked by the doubling in AI because we're six quarters in from the launch of Chat GPT,” Teare said. “I think part of that is that in venture, things take time to sort of filter through.” There were also signs that larger M&A deals increased in the second quarter, providing much needed liquidity in a continued dry IPO market. “We're definitely seeing a stronger M&A environment compared to 2022,” Teare said. “The big expectation is that M&A is going to pick up more significantly and I’m not sure we’ve seen that yet, partly because prices have come down. There's a lot of companies who might realize they're not gonna make it to going public in the next 3 to 5 years…So, I think it has improved but not as much as many in the bench community were wanting or expecting.” Equity is back on Friday with our weekly news roundup. So come back then! Before we let you go, some disclosures: We invited Gené on the show because we wanted to get her valuable insights regarding the venture capital markets. We knew she’d be great on the topic, because Mary Ann worked with her for years at Crunchbase. During her tenure at Crunchbase, she was paid partially in stock options, and retains a minor stake in Crunchbase itself. We do our best at Equity to cite the best data source for whatever topic we’re looking at, which means we use Crunchbase data as well as information from its competitors at PitchBook and CB Insights. For instance, we had a PitchBook denizen on the show to chat through Q2 2023 results last year. We think we put together the best possible show for you on its merits alone, but did want to note some professional overlaps right up top.

Transcript

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0:16.2

Hello and welcome back to Equity Tech Crunch's flagship podcast about the business of startups. I'm Marianne Acevedo and this is our Wednesday episode where we hone in

0:20.5

on a trend in the startup world and dive deep.

0:23.4

Today I am once again speaking with the wonderful Janay Tier.

0:27.1

Senior data editor at Crunchbased News.

0:29.3

Janay, welcome back to the show.

0:31.0

Wonderful to have you as always.

0:33.2

Thank you, Maria, and it's lovely to be here.

0:35.5

Yeah, so for those of you who don't know,

0:37.9

Janay and I actually used to work together

0:40.1

several years ago at Crunchbase when I was a reporter there and so we have a long

0:45.1

history together and she is not only brilliant but incredibly kind very happy to

0:49.8

have you here Janay. So today we're going to be taking a look back at global numbers for

0:53.6

startups in the first half of 2024 and how they compare it to last year's

0:58.0

numbers and what to expect in the second half of this year. So there's a lot going on obviously. I feel like this

1:04.9

year funding activity has definitely picked up, feels more active than last year for

1:10.3

sure, and you just wrote an article about second quarter numbers so you

1:14.9

want to give us a quick summary of what took place in the second quarter with

1:18.2

regards to start up funding globally? Yes and I think you know the question we're

1:22.4

sort of two years into this downturn,

1:24.7

solidly two years in, and I think the question when I speak to those broadly in the

1:29.2

venture community or I'm speaking to founders is are things beginning to pick up slowly?

1:35.0

Are there signs of things getting a little better two years down the line?

...

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