Latest news with #VCfunding
Tahawul Tech
7 hours ago
- Business
- Tahawul Tech
AI funding hits record-high of $23.6bn in Q2
AI start-ups are on track for another record year, driven by strong early investment and major funding deals. Mega deals, such as Elon Musk's xAI aiming for $10 billion and Figure AI seeking $1.5 billion, have sparked investor interest and put more pressure on start-ups to develop real-world AI solutions. This perfect storm of events has led to the strongest start to the year and a record-breaking quarterly total. According to data presented by , VC funding into AI start-ups skyrocketed by 71% year-over-year and hit a record $23.6 billion in Q2. In Q2 alone, AI start-ups raised nearly 70% of the total annual funding seen in 2022 and 2023. Despite high interest rates, economic slowdown, stricter regulations on big tech and AI, Trump's tariff policies, and global trade tensions, AI continues to outperform nearly every other area of the tech sector, both in market forecast and VC investments. The Crunchbase data show that AI start-ups raised $14.1 billion in Q1, 23% more than the amount raised in the same period a year ago. Also, AI start-ups made nearly 58% of global VC investments in the first quarter, doubling their share year-over-year and reflecting growing investor enthusiasm. That momentum carried over into Q2, pushing the quarterly funding total to an all-time high. Between April and June, VC investors poured another $23.6 billion into the market, representing a 71% increase from Q2 2024 and the highest quarterly total. To put that figure into perspective, in Q2 alone, AI start-ups raised nearly 70% of the total annual funding seen in 2022 and 2023, when they raised $38 billion and $35 billion, respectively. Even if VC investments slow down, the current trend shows 2025 could still set a new record, outperforming 2024, the best year for AI start-up funding so far, which saw $64.4 billion in VC investments. Cumulative VC Funding Climbs to $285 Billion Comparing AI start-up funding to that of other most-funded sectors in 2025 reveals just how strong this trend is. In comparison, AI start-ups have raised twice more money than fintech start-ups ($15.8 billion), 70% more than IT start-ups ($21.9 billion), and nearly three times more than biotech companies ($13.8 billion) With over $37 billion of fresh capital poured into the market over the past five months, the cumulative funding amount in the AI start-up sector has jumped over $285 billion, and around 80% of that value, or $244 billion, was raised in the past five years. Statistics show that U.S. start-ups have raised 65% of that money, with a total of $187 billion in funding. Asiana and European companies follow with $49 billion and $36 billion in cumulative funding, respectively.
Zawya
a day ago
- Business
- Zawya
Saudi Arabia maintains its first rank across MENA for venture capital investment in H1 2025
Riyadh, Saudi Arabia – The "H1 2025 MENA Venture Investment Report" revealed that Saudi Arabia maintained its first rank across MENA in terms of Venture Capital (VC) funding in H1 2025, witnessing a total VC deployment of $860 Million (SAR 3.2 billion), surpassing the total VC funding of 2024 (full year). This achievement reflects the development the Kingdom is witnessing in various economic and financial sectors in light of the Saudi Vision 2030 and its goals to strengthen the national economy. According to the report published today by the venture data platform MAGNiTT, the Kingdom captured the highest share of total VC funding in the MENA region in H1 2025, accounting for 56% of the total capital deployed in the region. The report also revealed that Saudi Arabia achieved a record number of 114 VC deals for the first half of 2025. This confirms the attractiveness of the Saudi market, enhances its competitive environment, and consolidates the strength of the Kingdom's economy as the largest economy in MENA. Dr. Nabeel Koshak, CEO and Board Member at SVC, commented: "The Kingdom's leading position in the VC scene in the region comes as a result of many governmental initiatives launched to stimulate the VC and startups ecosystem within the Saudi Vision 2030 programs. We at SVC are committed to continuing to lead the development of the ecosystem by stimulating private investors to provide support for startups and SMEs to be capable of fast and high growth, leading to diversifying the national economy and achieving the goals of the Saudi Vision 2030." SVC is an investment company established in 2018. It is a subsidiary of the SME Bank, part of the National Development Fund (NDF). SVC aims to stimulate and sustain financing for Startups and SMEs from pre-Seed to pre-IPO through investment in funds and direct investment in startups and SMEs.
Bloomberg
2 days ago
- Business
- Bloomberg
Middle East Startups Double Fundraising to Defy Broad Slowdown
Startups in the Middle East nearly doubled their fundraising in the first half of the year, defying a slowdown in venture capital investment in emerging markets brought on by economic uncertainty and investor caution. About $1.35 billion in VC funding was funneled to companies in the Middle East from January through June, led by Saudi Arabia and the United Arab Emirates, according to data platform Magnitt.
Coin Geek
5 days ago
- Business
- Coin Geek
African blockchain startups outpaced VC landscape in 2024: report
Getting your Trinity Audio player ready... In 2024, blockchain startups in Africa outperformed the rest of the market, capturing 13% of all deals on the continent amid contracting VC funding to African ventures. Blockchain startups captured 7.4% of all venture funding, a slight rise from 7% the previous year, revealed the 2024 Africa Blockchain Report by Swiss blockchain venture firm CV VC and pan-African banking giant Absa. The share of the deals nearly doubled from 7.3% in 2023. Most impressively, the median deal size for the sector hit $2.8 million, twice the industry median, 'reflecting investor willingness to make high-conviction bets even amid risk-off conditions.' However, the average deal size dipped 44% to $4.1 million. The report revealed that investors are shifting from startups developing protocol-level infrastructure to platforms focused on utility. DeFi, data infrastructure providers, and startups offering digital currency-fiat financial services dominated the fundraising. The report also reiterated the rise of stablecoins on the continent. 'It is probable that within a decade, more Africans will use stablecoins for daily transactions than hold traditional bank accounts,' commented CV VC CEO Matthias Ruch. Yellow Card, an exchange whose business model now leans overwhelmingly on stablecoins, had the region's biggest funding round, raising $33 million in October. The round, led by Blockchain Capital, brought its total funding to $88 million, making it Africa's highest-funded exchange. Source: CV VC But while blockchain startups outperformed their peers, Africa's startups only attracted $122.5 million last year, translating to 1% of the $12.1 billion raised globally, down from 1.8% the year prior. Overall, African startups raised $2.6 billion across 427 deals, a separate report revealed. 'This is not just an imbalance; it's an opportunity. An invitation to investors, developers, policymakers and innovators to engage with one of the most promising blockchain frontiers on the planet,' Ruch added. The G20 must focus on blockchain: Absa As blockchain outpaces most other technologies, it must remain a central part of conversations around development in Africa, including at the upcoming G20 Summit, says Rob Downes, Absa's head of digital assets. The G20 Leaders' Summit will be held in November in Johannesburg, the first time the event is being held in Africa. It will host the world's most powerful leaders to discuss pressing global issues, including the digital economy, with AI, data governance, and cybersecurity among the themes. With blockchain outpacing all these sectors in funding growth last year, it must be a key area of focus for the G20 leaders, says Downes. 'It certainly isn't farfetched to see a future world where digital money lives on blockchains, with AI tooling monitoring real time activity and patterns to detect and prevent fraud, money laundering and terrorist financing, and money transfers happening seamlessly when pre-agreed conditions are met,' he added. Blockchain adoption in Africa has recorded steady growth, unfazed by the funding or the cyclical booms and busts in the digital currency sector. Dozens of startups have developed blockchain solutions addressing challenges around financial inclusion, supply chain management, and intra-African trade, cross-border transfers, document authentication, and more. Watch: The next big thing? Discover startups making waves at Block Dojo Cohort 10 title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen=""> Absa Africa CV VC G20 Matthias Ruch Rob Downes Stablecoins Startups
Forbes
19-05-2025
- Business
- Forbes
Here's Where Fintechs Are Turning For Funding
As the fintech VC funding landscape continues to look uncertain amid wider economic turmoil, companies are turning to alternatives to secure the capital they need. Those include crowdfunding, which might be about to enjoy a resurgence, as well as lesser known sources of capital such as government funded equity investment. Despite some positive signs of recovery in the fintech funding market, with global investment in H2 2024 exceeding that in H1, VC funding still trails far behind its peak from 2021. In fact, it has yet to reach the same levels seen in 2018. And where funding has been deployed, it has tended to be at the polar opposite ends of company stage, into either very early startups, or late, well-established, profitable companies. In many cases, the latter are raising funds from private investors rather than attempting an IPO, as might have been expected a few years ago, because of the volatile environment. UK-headquartered digital bank Zopa, for example, recently raised £80 million from existing and new investors, while having said in April that an IPO is 'not a priority' and that it might be reconsidered 'if and when the markets change'. This trend for fintechs to stay private for longer, gives VCs an opportunity to make lower risk bets when deploying their dry powder. In turn making it even harder for scaling stage companies to raise and, as a result, they are looking elsewhere. Jaidev Janardana, chief executive officer Zopa Ltd., speaks at the IFGS 2023 summit at the Guildhall ... More in London, UK, on Monday, April 17, 2023. Photographer: Chris Ratcliffe/Bloomberg In 2021 the number and value of UK crowdfunding deals was soaring, however since then it has declined dramatically from 569 rounds at its peak, to 297 in 2024. Now, that picture might be about to change again, as fintechs rediscover the funding method. One such fintech is Bloom Money, a UK-based community finance company. Founder and CEO, Nina Mohanty, observed that crowdfunding was becoming particularly popular with consumer-facing fintechs as a response to VCs turning away from the segment. Of the company's own reasons for going down the crowdfunding route she said, 'We're really excited about launching our crowdfund, which is currently in early access, because we get to showcase the power of our community, and the people that actually use our product and want to invest in a more inclusive financial future. By launching a crowdfund and building the future of Bloom with our community we are excited to demonstrate to VCs that there is indeed a need and huge pool for what we are building.' Another fintech that used this option, is Zero, a UK-based environmentally sustainable alternative to banks, that raised around £400,000 of its latest £1.5 million round through crowdfunding. Meanwhile, Sibstar, a spend management app for vulnerable people, is looking to raise £250,000 through the mechanism. Both are consumer-facing fintechs, supporting Mohanty's observation. Fintechs in some areas can also access government funding, usually distributed through a development bank, as is the case in Canada and Wales. These institutions vary in how they operate, but in the two examples given, they provide a range of finance solutions directly to companies. That includes equity investment, in which case, the bank sits on a company's cap table like any other investor. The caveat is that the companies must typically have a significant physical presence in the country in question in order to access the finance. Two fintech companies that have recently raised from the Development Bank of Wales include Driverly, a platform offering adaptable apps to insurers, and Finalrentals, a car hire platform. Armin Kia, CEO of Driverly, said of the company's reasons for applying for funding from the bank, 'We've always been keen to keep a fine balance between keeping a focus on our core business, while also being prepared to react to the demands of the market. That's an important task for any leadership team. The Development Bank of Wales and our new investors can see the wider market and help us with that.' Meanwhile in Canada, the BDC has participated twice in funding rounds for financial services app Koho, most recently in 2024. Additionally, in February 2025, the BDC announced a $500 million commitment to its Growth Venture Fund which includes insurtech and fintech in its focus areas, highlighting its commitment to the sector. The funding sources listed here are just two of the options available to fintechs that aren't private VC capital. The VC market, which fuelled the growth of the fintech industry for so long, will be some time yet in fully recovering. In the meantime, entrepreneurs and founders are known to be a creative lot, and as such, we will see an increase in uptake from more alternative sources of financing as they seek the capital they need to scale their companies.
