- The total funding raised has increased significantly over the years, from $351,311 in 2016 to $43,154,751 in 2024.
- A noticeable increase occurred between 2019 ($4.57M) and 2020 ($12M), almost tripling. Another jump happened between 2020 and 2021 ($21.7M)
- The largest leap is from 2023 ($24M) to 2024 ($43.15M), nearly doubling in one year.
- The number of AI companies raising funds has also grown, from just 2 in 2016 to 55 in 2024.
- Funding slightly decreased from $26.8M in 2022 to $24M in 2023, before surging again in 2024.
Between 2016 and 2024, several key factors have driven the expansion of AI investments. Significant technological advancements, particularly in machine learning and generative AI models, have broadened AI applications across various industries, enhancing their viability and attractiveness to businesses.
The proliferation of data from diverse sources has fueled AI systems’ learning and improvement, leading to more sophisticated applications and increased investment. Businesses seeking to improve efficiency and reduce costs have turned to AI-driven automation solutions, further boosting adoption and funding. Economic projections, such as PwC’s estimate that AI could contribute up to $15.7 trillion to the global economy by 2030, have encouraged investors to support AI initiatives.
Major technology companies have also made significant investments in AI, both by developing their own capabilities and acquiring AI startups, signaling strong confidence in AI’s potential. Additionally, government initiatives, including increased funding for AI research and favorable policies like the CHIPS and Science Act in the United States, have created an environment conducive to AI development and investment. Collectively, these factors have fostered a robust ecosystem for AI innovation and funding.
