Donate to Science & Enterprise

S&E on Mastodon

S&E on LinkedIn

S&E on Flipboard

Please share Science & Enterprise

Infographic – A.I. Venture Funds Tick Up in Q4 2022

Chart: Venture funding in A.I. by quarter

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.

More from Science & Enterprise:

We designed Science & Enterprise for busy readers including investors, researchers, entrepreneurs, and students. Except for a narrow cookies and privacy strip for first-time visitors, we have no pop-ups blocking the entire page, nor distracting animated GIF graphics. If you want to subscribe for daily email alerts, you can do that here, or find the link in the upper left-hand corner of the desktop page. The site is free, with no paywall. But, of course, donations are gratefully accepted.

*     *     *


1 comment to Infographic – A.I. Venture Funds Tick Up in Q4 2022