We’ve come to the end of the strongest bull-run market for venture capital (VC). But even as investors remain cautious, technological innovation has spurred massive opportunities, with today’s focus on generative artificial intelligence (GenAI). According to our analysis of Crunchbase data, AI-related companies raised $5.6 billion in Q1 2024, accounting for 17% of VC investment. AI only represented 10% of investment on average between 2013 to 2022.
This technology is laying the foundations for future investment opportunities. Companies that can deploy GenAI responsibly will achieve sustainable success and potentially break out of the boom-and-bust cycles that have characterized most innovation. While there will inevitably be winners and losers, the recovery period between innovations that transform our lives will continue to shorten, a trend we’ve seen especially in recent technological history.
