Q3 VC funding sees $2B in AI/ML and growth in Fintech and Web3
AI and machine learning (AI/ML) continued to lead venture capital funding in Q3 of 2024, according to Pitchbook’s Emerging Tech Indicator report.
AI/ML companies raised around $2 billion across 42 deals, marking a significant drop from the $8 billion raised in the previous quarter.
However, the funding activity remains strong, with investor interest continuing despite the decrease.
“Excluding these outliers, Q3 funding reflects a steady normalization in activity, with deal volume underscoring continued investor interest across the sector,” the report noted.
The decline in total funding was primarily due to two massive deals: xAI’s $6 billion and Safe Superintelligence’s $1 billion rounds.
Without these outliers, the sector shows consistent investment momentum.
Fintech also saw notable growth, with funding nearly doubling from $228.4 million in Q2 to $449 million in Q3.
However, the number of deals decreased from 25 to 18.
Notable fintech investments included $65 million raised by Slope to expand its business payment platform, $47.9 million raised by Neo Asset Management, and $40 million secured by Coast to improve fleet payment card management.
Web3 and decentralised finance (DeFi) investments surged significantly, with funding jumping from $93.9 million in Q2 to $373.8 million in Q3.
This spike reflects renewed investor interest in blockchain and decentralised platforms.
Key deals in the sector included $80 million raised by Story Protocol and ID Planet, $60 million raised by Partior for cross-border payments, and $55 million raised by Chaos Labs for its cloud-based blockchain platform.
The third quarter of 2024 showed a continued commitment from investors in AI/ML, fintech, and Web3, signaling strong growth across these emerging sectors.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
How OpenAI cemented its place on a rocky road in 2024
Share link:In this post: OpenAI had a challenging journey in marking itself as a prominent force in Artificial Intelligence. However, major milestones and other setbacks occurred for the company in 2024. This happened because CEO Sam Altman returned to help save the company.
Majority of businesses are still at early stages of AI maturity: MIT study
Share link:In this post: Authors of the study categorized stages of AI advancement into four, with the majority of firms still in the initial stages. The study analyzed 721 companies at different stages of AI advancement. Companies become AI future-ready in the final stage.
DeFi security sees a 40% drop in losses as CeFi faces a $694M surge in breaches
Share link:In this post: DeFi crypto hacks account for about 20.4% of all crypto hacks in 2024, while CeFi’s adds up to 30%. CeFi losses have increased to $694 million in 2024. Access control exploits accounts for the loss of over $1.7 billion.
5 crypto predictions for 2025
These 5 crypto prophecies put Nostradamus to shame