Five takeaways from startup funding in Q3 2024

Dacxi Chain
3 min readOct 8, 2024

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Source: americanbazaaronline

Startup funding in North America had its ups and downs in the third quarter of 2024. Pockets of decline were balanced by the high enthusiasm for AI.

According to a study by Indiaspora, Indian Americans have founded or co-founded 72 of the 358 unicorns that emerged in the United States since 2018. Indian American entrepreneurs account for 20% of immigrant-founded unicorns in America.

Valued at over $195 billion, these unicorn startups include enterprise tech, consumer retail, financial services, and healthcare among others. Immigration Impact reported that 46% of Fortune 500 companies are founded by immigrants or children of immigrants.

READ: Specialty chemical startup Mstack raises $40 million in funding (October 4, 2024)

Rounding up the latest reports on Q3 this year, here are five main takeaways from the startup ecosystem:

  1. Crunchbase data revealed that despite investors putting in $40.5 billion into startups across all stages in Q3, there has been a 10% decline in investment from the previous quarter. In fact, Pitchdeck reported the global startup funding reached a new high of $79 billion in Q2.
  2. OpenAI’s widely-reported $6.6 billion financing was not included in the tallies for Q3 by Crunchbase as it was officially announced later than when the report was made. However, there was an increase of 22% in the investments across all stages of startups compared to numbers in 2023.
  3. Late-stage deal making showed the largest gains while early stage funding showed the steepest decline. Even then, early-stage funding included 17 rounds of $100 million or more in Q3, most of which were biotech startups.
  4. Artificial intelligence or AI takes the giant piece of investment pie — a fact that remained common in the second and third quarters of 2024. Investors’ interest in artificial intelligence remained strong and steady this quarter, with nearly $15 billion invested in the industry in North America alone. OpenAI’s latest financing makes the number even higher.
  5. Venture investors have pulled back on once-popular themes like consumer products, e-commerce and “legacy cloud.” Now, the go-to ventures for investors around the world are AI, biotech and healthcare, and hardware, according to Crunchbase.

READ: Ex-Microsoft leads raise $11 million for their AI-powered B2B startup (October 3, 2024)

Some of the startups that raised funds in Q3 of 2024:

  • Defense tech startup Anduril received $1.5 billion in a Series F funding round in August.
  • Autonomous driving firm Waymo which received a $5 billion investment from parent-company Alphabet in July.
  • Legal tools platform Clio locked a $900 million Series F investment.
  • AI chip company Groq landed a $640 million Series D investment.
  • AI startup, Cohere secured a $500 million Series D investment.
  • Cell therapy developer ArsenalBio secured $325 million in Series C financing.
  • AI coding startup Magic raised a $320 million Series C investment.

Source: https://www.americanbazaaronline.com/2024/10/07/five-takeaways-from-startup-funding-in-q3-2024/

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