Global startup funding in 2024 reached nearly $314 billion, driven primarily by a significant rise in artificial intelligence (AI) investments. Funding for AI startups totaled $100 billion, reflecting an 80% increase from 2023, with AI capturing one in three venture dollars. North America experienced a 21% increase in funding, where 62% of the fourth-quarter investments went to AI companies. In contrast, Asian startup funding hit a decade low, largely due to a downturn in China. Europe maintained stable funding levels at approximately $51 billion, while Latin America showed recovery, particularly in fintech. Despite increased AI funding, seed-stage investment in the U.S. declined, making it harder for early-stage startups, which faced longer timelines and fewer opportunities for later funding rounds. Private venture-backed companies attained over $1 trillion in funding, but the creation of new unicorns slowed. Mergers and acquisitions involving venture-backed startups rose by 7%. Upcoming trends in 2025 will focus on the implications of technological events and IPO market dynamics.

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