AI startup funding remained strong in Q2, report finds

AI startup funding remained strong in Q2, report finds

All the sessions from Transform 2021 are available on-demand now. Watch now. The pandemic spurred investments in AI across nearly every industry. That’s according to CB Insights’ AI in the Numbers Q2 2021 report, which found that AI startups attracted record funding — more than $20 billion — despite a drop in deal volume. While the adoption rate varies between businesses, a majority of them — 95% in a recent S&P Global report — consider AI to be important in their digital transformation efforts. Organizations were expected to invest more than $50 billion in AI systems globally in 2020, according to IDC, up from $37.5 billion in 2019. And by 2024, investment is expected to reach $110 billion. The U.S. led as an AI hub in Q2, according to CB Insights, attracting 41% of AI startup venture equity deals. U.S.-based companies accounted for 41% of deals in the previous quarter, up 39% year-over-year. Meanwhile, China remained second to the U.S., with an uptick of 17% quarter-over-quarter. AI startup funding in Q2 was driven mostly by “mega-rounds,” or deals worth $100 …
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