Global AI Funding Lower Middle Market
Artificial Intelligence Funding by Year – Lower Middle Market
(In Billions of USD)
Total Deal Size in ($B) # of Deals
Since 2020, the global AI funding landscape has experienced significant growth, with mid-sized funding deals playing a crucial role in this expansion. In 2021, investments surged, driven by foundational models and the rise of AI unicorns, leading to 3,200 funding rounds compared to 2,600 in 2020. While large-scale investments like those in Databricks and UiPath in 2023 have been noteworthy, mid-sized deals have been instrumental in fostering innovation and supporting emerging AI startups. These funding rounds have laid a strong financial foundation for AI's continued growth, a trend that persists into 2024. In November 2024, global venture funding surged to $28 billion, up from $21 billion in November 2023, reflecting a steady upward trend. This growth highlights AI's growing significance in the investment landscape. Funding rounds in the lower middle market are driving innovation, supporting emerging startups, and laying the foundation for long-term growth. As AI companies scale, the sector continues to attract substantial capital, fostering innovation and ensuring sustained growth in the years to come.
1,589
14.7
20.7
19.3
12.8
12.8
2020
2021
2022
2023
2024
Funding Volume by Quarter – Lower Middle Market (In Billions of USD)
Total Deal Size in ($B) # of Deals
812 814 823 846800
757
704
682
624596 631
613
561 517 533
499
426436 374
352
3.5 3.3 3.5 4.4 4.2 5.4 5.3 5.6 5.6 5.1 4.2 4.3 3.2 3.3 3.1 3.0 2.8 3.2 3.2 3.7
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2021 2022 2023 2024
Source: Pitchbook, Fortune Business Insights, Grand View Research, and Crunchbase.
Source: Pitchbook as of 31 December 2024. Data consists of transactions where deal value was disclosed. Note: Companies valued below $150 million were considered lower middle market.
24
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