Click on image for full-size view (CB Insights)
18 Mar. 2023. A new report on venture funding for artificial intelligence start-ups shows global investment dollars rose in the fourth quarter of 2022, the first increase in 18 months. However, the report issued this week by technology intelligence company CB Insights (registration required) also shows total annual funding in 2022 for A.I. start-ups, like other tech sectors, declining by a third from 2021.
For all of 2022, venture investments in A.I. enterprises worldwide fell to $45.8 billion from $69.7 billion in 2021, a 34 percent decline, with the number of A.I. venture deals also falling by 10 percent to 2,956 from 3,274 in the previous year. In the last three months of 2022, however, total investment dollars in A.I. start-ups rose by 15 percent to $9.3 billion from $8.1 billion in the third quarter, the first quarterly gain since the third quarter of 2021. But the number of venture transactions continued their quarterly decline during 2022 to 615 deals in the fourth quarter from 684 in Q3.
The CB Insights data show U.S. companies received more than half (53%) of all A.I. investment dollars in the fourth quarter of 2022, in well less than half (38%) of venture deals. Asian A.I. companies accounted for about a quarter (26%) of venture dollars in Q4, and about three in 10 (29%) of transactions, while European A.I. companies received 16 percent of global investment dollars, but took part in a quarter (25%) of the venture deals.
Early-stage companies — seed/angel and series A or first-round deals — accounted for two-thirds of global A.I. transactions in 2022, similar to the two previous years, while the average and median size of venture deals in A.I. investments declined in 2022 from 2021. But the $20.7 million average and $5 million median A.I. deals in 2022 are still historically high, exceeding the average- and median-size deals recorded before 2021.
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[…] billion in 2021 to $2.65 billion in 2022, with the number of deals inching up from 105 to 110. As reported last week, venture investments in A.I. of any kind declined in 2022, although showing signs of life in the […]