Q3 VC funding sees $2B in AI/ML and growth in Fintech and Web3

AI and machine learning (AI/ML) continued to lead venture capital funding in Q3 of 2024, according to Pitchbook’s Emerging Tech Indicator report.  

AI/ML companies raised around $2 billion across 42 deals, marking a significant drop from the $8 billion raised in the previous quarter.  

However, the funding activity remains strong, with investor interest continuing despite the decrease.  

“Excluding these outliers, Q3 funding reflects a steady normalization in activity, with deal volume underscoring continued investor interest across the sector,” the report noted.

The decline in total funding was primarily due to two massive deals: xAI’s $6 billion and Safe Superintelligence’s $1 billion rounds.  

Without these outliers, the sector shows consistent investment momentum.  

Fintech also saw notable growth, with funding nearly doubling from $228.4 million in Q2 to $449 million in Q3.  

However, the number of deals decreased from 25 to 18.  

Notable fintech investments included $65 million raised by Slope to expand its business payment platform, $47.9 million raised by Neo Asset Management, and $40 million secured by Coast to improve fleet payment card management.  

Web3 and decentralised finance (DeFi) investments surged significantly, with funding jumping from $93.9 million in Q2 to $373.8 million in Q3.  

This spike reflects renewed investor interest in blockchain and decentralised platforms.  

Key deals in the sector included $80 million raised by Story Protocol and ID Planet, $60 million raised by Partior for cross-border payments, and $55 million raised by Chaos Labs for its cloud-based blockchain platform.  

The third quarter of 2024 showed a continued commitment from investors in AI/ML, fintech, and Web3, signaling strong growth across these emerging sectors.