AI startup funding remained strong in Q2, report finds
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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 …
More on: venturebeat.com