Risk capital financing (VC) in the artificial intelligence (AI) sector has experienced remarkable growth in 2024, consolidating itself as one of the most attractive sectors for investors.
In the second quarter of 2024, the VC invested US $25.3 billion in AI, which marks a 30% increase with respect to the first quarter. 80% of investments were allocated to companies in initial phases (Seed and Series A), demonstrating interest in emerging technologies.
The United States continues to dominate investments in AI, although countries such as China and the European Union are showing significant growth in the attraction of funds due to the consolidation of public policies and high investment in research and development.
Emerging companies and the most established projects continue to receive strong investments, with a particular emphasis on innovative solutions of Machine Learning, natural language processing and automation.
Pablo Rutigliano, founder of Atomic 3, explained that the financing rate in the AI sector is showing deceleration signs. We are seeing a change in which larger investments tend to be more selective, which could indicate a reversal in the general trend. This could mark the beginning of a period where future growth expectations are not so optimistic.
However, he added that, once this cycle has been overcome, and depending on the evolution of technology, the AI market could begin to “adjust the course”, which will potentially lead to a new phase driven by a more cautious and concentrated investment .
How does VC financing work in AI?
The financing of AI through VC generally follows several stages:
- Seed Funding: In this phase, investors provide initial capital for research, prototype development and validation of disruptive ideas in AI.
- Series A, B, C, etc.: During subsequent financing rounds, companies seek additional resources to climb their technological solutions, attract specialized talent and expand globally.
Evolution of VC investment in AI in 2024
During the first semester of 2024, the VC invested more than $ 25.3 billion in AI, which reflects robust growth in the sector. Investments in AI are mainly focused on areas such as business processes automation, generative AI and the use of AI in sectors such as health, education and finance. The average size of each investment operation increased to $ 5.6 million, a clear sign of the greatest interest in projects with a strong long -term potential.
The valuations of the AI companies also showed an upward trend, with the average valuation of companies reaching $ 150 million, which reflects a growing confidence of investors on the disruptive impact of AI in various industries.
María Fernanda Juppet, CEO of Cryptomkt said that during 2025, we hope that cryptocurrency financing and artificial intelligence will follow a trend of consolidation and specialization. In the crypto sector, funds will be increasingly focused on projects with solid foundations, regulatory compliance and solutions that provide scalability and real adoption. The market no longer rewards speculative narratives, but the construction of robust infrastructures and services that connect with the traditional economy.
How will the VC Funding evolve in AI in 2025?
Vc financing is expected to continue growing in 2025, with a greater approach to the consolidation of technological companies that have already reached an advanced level of development. Series B and C rounds will probably experience an increase, as companies seek capital to climb AI solutions globally.
The AI market will also see an intensified approach to industrial applications, from manufacturing automation to the massive adoption of the customer service, logistics and cybersecurity. Likewise, it is anticipated that public policies in countries such as the United States, the European and China Union will further boost the development of AI through tax incentives, support for research and implementation of regulatory frameworks.
New technologies such as the explainable AI, the use of neural networks for the improvement of industrial processes and the progress in the creation of the most ethical and sustainable AI models will receive an important approach in investment rounds. However, investors are also expected to be more cautious, given the risk inherent in the rapid advance of technology.
In summary, 2025 is emerging as a year of consolidation for the VC in AI, with an approach in strengthening the infrastructure of technology companies, as well as taking advantage of growth in international markets and emerging sectors. As IA continues to redefine innovation, risk capital will continue to be key to promoting its development and adoption on a global scale.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
