What Crunchbase’s latest quarterly report reveals about the state of startup funding

The Crunchbase Daily Newsletter highlights trends in startup funding, Microsoft's AI investments, and venture funding details for Q1 2024.

Plus, Microsoft’s appetite for AI is more than just OpenAI and Inflection April 4, 2024 Hi, Tim . Startup funding in the first quarter of 2024 was the second-lowest on record since the beginning of 2018, new Crunchbase data shows. But, as always, th

April 4, 2024 6:01 AM

newsletter@email.crunchbase.com

What Crunchbase’s latest quarterly report reveals about the state of startup funding

The Crunchbase Daily Newsletter highlights trends in startup funding, Microsoft's AI investments, and venture funding details for Q1 2024.

<html><head> <meta http-equiv="Content-Type" content="text/html; charset=utf-8"><meta content="http://static.crunchbase.com/daily/assets/cb-fb-share_v2.png"><meta content="image/png"><meta content="300"><meta content="300"><meta content="Crunchbase Daily"><meta content="The Crunchbase Daily is everything you'll need to start your day! Sign-up now."><meta content="2024-04-03T18:49:33Z"></head><body style="background:#eaeaea; margin:0; padding:0; width:100%!important"><div style="color:transparent; visibility:hidden; opacity:0; font-size:0px; border:0; max-height:1px; width:1px; margin:0px; padding:0px; border-width:0px!important; display:none!important; line-height:0px!important"><img border="0" width="1" height="1" src="http://sp.email.crunchbase.com/q/Y9FF6i1ZawG6WuVCze2G4g~~/AARGbAA~/RgRn8SmFPVcDc3BjQgpmBIWkDmZHnzjQUhVlbXVsaXN0MDFAb3V0bG9vay5jb21YBAAAADs~" alt=""></div><span style="color:transparent; visibility:hidden; display:none; opacity:0; height:0; width:0; font-size:0">Plus, Microsoft’s appetite for AI is more than just OpenAI and Inflection</span><img src="http://links.email.crunchbase.com/e/eo?_t=071ea1d6efd844c0a60f7d7dc2214a93&_m=45d745b122ad44e198b49dcf51291309&_e=DTNEGmchlDCLdrYqfjByfcaobSmIyuXwrHEC6M6fkViU0bHz6kEHieucNlG7ZCSRyLCmph_VqeEHRYM0PZeh9Syezd25WazTheOxhAqhIWzWytUSxrup5q4Lzz5VCSkTbpMQX6jlt6goojuip_bsJQ%3D%3D" width="1" height="1" style="border:0; width:1px; height:1px; border-width:0px!important; display:none!important; line-height:0!important"> <table cellpadding="0" cellspacing="0" style="background:#eaeaea; border:0; color:#333; font-family:Arial,'Helvetica Neue',Helvetica,sans-serif; margin:0; padding:0; width:100%!important"><tbody><tr><td align="center" valign="top"><table cellpadding="0" cellspacing="0" style="border:0; padding:25px 0; width:522px"><tbody><tr><td><a href="#" style="display:block; padding:0 0 0 1px"><img height="23" src="http://static.crunchbase.com/daily/assets/cb-daily-header-logo-v5.png" width="176"> </a></td></tr><tr><td><img alt="" height="10" src="http://c0185784a2b233b0db9b-d0e5e4adc266f8aacd2ff78abb166d77.r51.cf2.rackcdn.com/blank.png" width="520" style="border:0; height:10px; margin:0; padding:0; width:520px"></td></tr><tr><td><table cellpadding="0" cellspacing="0" style="background:#0288d1; border:1px solid #00559d; color:#fff; font-family:Arial,'Helvetica Neue',Helvetica,sans-serif"><tbody><tr><td><h3 style="color:#fff; font-size:15px; font-weight:bold; line-height:21px; margin:0; padding:5px 10px; width:400px">April 4, 2024</h3></td><td style="padding:5px 10px; width:400px"></td><td style="padding:5px 10px; width:400px"></td><td style="padding:5px 10px; width:400px"></td></tr></tbody></table></td></tr><tr><td style="background:#fff; color:#333; border:1px solid #cdcdcd; border-top:0; font-family:Arial,'Helvetica Neue',Helvetica,sans-serif; font-size:14px; line-height:19px; padding:15px 20px 20px"><p style="margin:0 0 15px 0">Hi, Tim . Startup funding in the first quarter of 2024 was the second-lowest on record since the beginning of 2018, new <a href="#" style="color:#0288d1; text-decoration:none">Crunchbase</a> data shows. But, as always, there are bright spots in the numbers too, from continued investor enthusiasm for AI to what looks like a nascent IPO market recovery. Let’s jump in with <a href="#" style="color:#0288d1; text-decoration:none">Crunchbase’s Q1 global venture funding report</a>. Plus, a look at some of <a href="#" style="color:#0288d1; text-decoration:none">Microsoft</a>’s AI investments you may have missed amid all the buzz over <a href="#" style="color:#0288d1; text-decoration:none">Inflection</a> and <a href="#" style="color:#0288d1; text-decoration:none">OpenAI</a>.</p><h2 id="q1-global-venture-funding-numbers-show-investors-remain-cautioushttpsnewscrunchbasecomventureglobal-funding-recap-q1-2024" style="color:#333; margin:0 0 5px 0; font-size:14px; font-weight:bold">📊 <a href="#" style="color:#0288d1; text-decoration:none">Q1 global venture funding numbers show investors remain cautious</a></h2><p style="margin:0 0 15px 0">Healthcare and AI led global venture funding in the first quarter, Crunchbase data shows. And while overall funding was lukewarm, early-stage funding spiked slightly year over year and the IPO markets perked up, signaling a broader recovery may be on the horizon. <a href="#" style="color:#0288d1; text-decoration:none">Dive into the details with our exclusive quarterly report</a>.</p><h2 id="microsofts-appetite-for-ai-is-more-than-just-openai-and-inflectionhttpsnewscrunchbasecomaimicrosoft-infatuated-startups-inflection-openai" style="color:#333; margin:0 0 5px 0; font-size:14px; font-weight:bold">🤖 <a href="#" style="color:#0288d1; text-decoration:none">Microsoft’s appetite for AI is more than just OpenAI and Inflection</a></h2><p style="margin:0 0 15px 0"><a href="#" style="color:#0288d1; text-decoration:none">Microsoft</a> made headlines last week when it all but acquired AI unicorn <a href="#" style="color:#0288d1; text-decoration:none">Inflection</a> in a deal that is believed to include hundreds of millions of dollars in investment, the hiring of two of the startup’s co-founders and most of its 70-person staff, and licensing its technology. Microsoft has also, of course, poured tens of billions of dollars into <a href="#" style="color:#0288d1; text-decoration:none">OpenAI</a>. But the Washington tech giant’s appetite for AI is also seen in some more under-the-radar deals by it and the company’s investment arm.</p><p style="margin:0 0 15px 0">Related Crunchbase Pro query: <a href="#" style="color:#0288d1; text-decoration:none">Microsoft’s AI Investments</a></p><h2 id="new-female-founded-unicorn-startup-count-dwindled-as-funding-fellhttpsnewscrunchbasecomdiversityfemale-founded-unicorn-startups-ai-anthropic-zum" style="color:#333; margin:0 0 5px 0; font-size:14px; font-weight:bold">🦄 <a href="#" style="color:#0288d1; text-decoration:none">New female-founded unicorn startup count dwindled as funding fell</a></h2><p style="margin:0 0 15px 0">Just seven U.S. companies with female founders joined <a href="#" style="color:#0288d1; text-decoration:none">the unicorn club</a> in 2023 and 2024, <a href="#" style="color:#0288d1; text-decoration:none">Crunchbase</a> data shows. That’s a precipitous decline from the peak year of 2021, when dozens of female-founded American companies met or exceeded the $1 billion level for the first time, amid <a href="#" style="color:#0288d1; text-decoration:none">a global boom for the category</a>. The good news? Women are clearly taking a leading role at major AI startups that have received significant funding.</p><p style="margin:0 0 15px 0">See also: <a href="#" style="color:#0288d1; text-decoration:none">The Crunchbase Unicorn Board</a></p><h2 id="marchs-10-largest-us-funding-dealshttpsnewscrunchbasecomventurebiggest-rounds-march-wonder-biotech" style="color:#333; margin:0 0 5px 0; font-size:14px; font-weight:bold">🏆 <a href="#" style="color:#0288d1; text-decoration:none">March’s 10 largest US funding deals</a></h2><p style="margin:0 0 15px 0">Many of March’s largest VC funding rounds weren’t just big, they were also quite interesting. From a new food delivery startup with $700 million in fresh funding behind it to a startup combining genetics and machine learning, U.S. companies that raised big rounds from investors spanned industries.</p><p style="margin:0 0 15px 0">See also: <a href="#" style="color:#0288d1; text-decoration:none">The Crunchbase Megadeals Board</a></p></td></tr><tr><td><img alt="" height="30" src="http://c0185784a2b233b0db9b-d0e5e4adc266f8aacd2ff78abb166d77.r51.cf2.rackcdn.com/blank.png" width="520" style="border:0; height:30px; margin:0; padding:0; width:520px"></td></tr><tr><td><img height="0" src="https://ssl.google-analytics.com/collect?v=1&tid=UA-68916521-1&cid=194&t=event&ec=native_ads&ea=pageview&el=cb_daily_chrome_extension_Q1_2022 " width="0"><table style="padding:0; margin:0; border:0"><tbody><tr><td style="background:#fff; color:#333; border:1px solid #cdcdcd; font-family:Arial,'Helvetica Neue',Helvetica,sans-serif; font-size:14px; line-height:19px; padding:15px 20px 15px"><h2 style="color:#333; margin:0 0 5px 0; font-size:14px"><b data-stringify-type="bold"><strong>Get more with Crunchbase Enterprise</strong></b></h2>Find out more about Crunchbase’s prospecting software that enables your entire team to find the right companies, identify the right people, and connect with the decision-makers who can move deals forward – all in one solution. <div align="left" style="padding:10px 0 0 0"><a href="#" style="background-color:#f5a623; border-radius:4px; color:#183444; display:inline-block; font-family:sans-serif; font-size:13px; font-weight:bold; line-height:40px; text-align:center; text-decoration:none; width:200px"><img alt="" src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/071ea1d6efd844c0a60f7d7dc2214a93/One%20Off/pro_lightning-navy.png" style="padding:5px; width:10px; vertical-align:middle"> BOOK A MEETING NOW</a></div></td></tr><tr></tr></tbody></table></td></tr><tr><td></td></tr><tr><td><img alt="" height="30" src="http://c0185784a2b233b0db9b-d0e5e4adc266f8aacd2ff78abb166d77.r51.cf2.rackcdn.com/blank.png" width="520" style="border:0; height:30px; margin:0; padding:0; width:520px"></td></tr><tr><td><h3 style="background:#0288d1; border:1px solid #00559d; color:#ffffff; font-size:15px; font-weight:bold; line-height:21px; margin:0; padding:5px 10px">Recent Investments</h3></td></tr><tr><td style="background:#fff; border:1px solid #cdcdcd; border-top:0; color:#333; font-size:14px; padding:15px 20px 20px"><table><tbody><tr><td style="width:80px"><a href="#"><img src="https://images.crunchbase.com/image/upload/c_pad,h_60,w_60/fxo0808zdeuk91znhu0x" style="border:1px solid #bbb; height:60px; width:60px"> </a></td><td><p style="font-size:20px; font-weight:bold; margin:0"><a href="#" style="color:#0288d1; text-decoration:none">Hailo</a></p><p style="font-size:20px; font-weight:bold; margin:0; padding:5px 0 0"><a href="#" style="color:#333; text-decoration:none">$120M</a> / <a href="#" style="color:#0288d1; text-decoration:none">Series C</a></p></td></tr><tr><td colspan="5" style="font-size:13px; padding:10px 0 5px">Hailo develops AI accelerators and vision processors specifically designed to enable advanced ML tasks on edge devices.</td></tr><tr><td colspan="5" style="font-size:13px; padding:5px 0"><p style="color:#333; float:left; font-weight:bold; margin:0; text-align:right; width:75px">Categories:</p><p style="color:#666; margin:0 0 0 85px">Artificial Intelligence (AI) • Augmented Reality • Embedded Systems • Machine Learning • Semiconductor</p></td></tr><tr><td colspan="5" style="font-size:13px; padding:5px 0"><p style="color:#333; float:left; font-weight:bold; margin:0; text-align:right; width:75px">Founders:</p><p style="color:#666; margin:0 0 0 85px"><a href="#" style="color:#0288d1; text-decoration:none">Avi Baum</a>, <a href="#" style="color:#0288d1; text-decoration:none">Hadar Zeitlin</a>, <a href="#" style="color:#0288d1; text-decoration:none">Orr Danon</a></p></td></tr><tr><td colspan="5" style="font-size:13px; padding:5px 0 20px"><p style="color:#333; float:left; font-weight:bold; margin:0; text-align:right; width:75px">Investors:</p><p style="color:#666; margin:0 0 0 85px"><a href="#" style="color:#0288d1; text-decoration:none">Alfred Akirov</a>, <a href="#" style="color:#0288d1; text-decoration:none">Automotive Equipment (AEV)</a>, <a href="#" style="color:#0288d1; text-decoration:none">Comasco</a> <a href="#" style="color:#0288d1; text-decoration:none">+ 8 more</a></p></td></tr><tr><td style="width:80px"><a href="#"><img src="https://images.crunchbase.com/image/upload/c_pad,h_60,w_60/rsyw42a58xyxovgrklws" style="border:1px solid #bbb; height:60px; width:60px"> </a></td><td><p style="font-size:20px; font-weight:bold; margin:0"><a href="#" style="color:#0288d1; text-decoration:none">Constantinople</a></p><p style="font-size:20px; font-weight:bold; margin:0; padding:5px 0 0"><a href="#" style="color:#333; text-decoration:none">$50M</a> / <a href="#" style="color:#0288d1; text-decoration:none">Series A</a></p></td></tr><tr><td colspan="5" style="font-size:13px; padding:10px 0 5px">Constantinople is a fintech company that offers a software-as-a-service platform that supports both retail and business banking.</td></tr><tr><td colspan="5" style="font-size:13px; padding:5px 0"><p style="color:#333; float:left; font-weight:bold; margin:0; text-align:right; width:75px">Categories:</p><p style="color:#666; margin:0 0 0 85px">Customer Service • FinTech • SaaS • Software</p></td></tr><tr><td colspan="5" style="font-size:13px; padding:5px 0"><p style="color:#333; float:left; font-weight:bold; margin:0; text-align:right; width:75px">Founders:</p><p style="color:#666; margin:0 0 0 85px"><a href="#" style="color:#0288d1; text-decoration:none">Di Challenor</a>, <a href="#" style="color:#0288d1; text-decoration:none">Macgregor Duncan</a></p></td></tr><tr><td colspan="5" style="font-size:13px; padding:5px 0 20px"><p style="color:#333; float:left; font-weight:bold; margin:0; text-align:right; width:75px">Investors:</p><p style="color:#666; margin:0 0 0 85px"><a href="#" style="color:#0288d1; text-decoration:none">Prosus Ventures</a> (Lead), <a href="#" style="color:#0288d1; text-decoration:none">Airtree Ventures</a>, <a href="#" style="color:#0288d1; text-decoration:none">Great Southern Bank</a> <a href="#" style="color:#0288d1; text-decoration:none">+ 1 more</a></p></td></tr><tr><td style="width:80px"><a href="#"><img src="https://images.crunchbase.com/image/upload/c_pad,h_60,w_60/bndofljstqgefqzqjfqe" style="border:1px solid #bbb; height:60px; width:60px"> </a></td><td><p style="font-size:20px; font-weight:bold; margin:0"><a href="#" style="color:#0288d1; text-decoration:none">SeLux Diagnostics</a></p><p style="font-size:20px; font-weight:bold; margin:0; padding:5px 0 0"><a href="#" style="color:#333; text-decoration:none">$48M</a> / <a href="#" style="color:#0288d1; text-decoration:none">Venture Round</a></p></td></tr><tr><td colspan="5" style="font-size:13px; padding:10px 0 5px">SeLux Diagnostics is a developer of a next-generation phenotyping platform that provides personalized antimicrobial therapies to patients.</td></tr><tr><td colspan="5" style="font-size:13px; padding:5px 0"><p style="color:#333; float:left; font-weight:bold; margin:0; text-align:right; width:75px">Categories:</p><p style="color:#666; margin:0 0 0 85px">Biotechnology • Health Care • Health Diagnostics • Therapeutics</p></td></tr><tr><td colspan="5" style="font-size:13px; padding:5px 0"><p style="color:#333; float:left; font-weight:bold; margin:0; text-align:right; width:75px">Founders:</p><p style="color:#666; margin:0 0 0 85px"><a href="#" style="color:#0288d1; text-decoration:none">Aleksandar Vacic</a>, <a href="#" style="color:#0288d1; text-decoration:none">Eric Stern</a></p></td></tr><tr><td colspan="5" style="font-size:13px; padding:5px 0 20px"><p style="color:#333; float:left; font-weight:bold; margin:0; text-align:right; width:75px">Investors:</p><p style="color:#666; margin:0 0 0 85px"><a href="#" style="color:#0288d1; text-decoration:none">RA Capital Management</a> (Lead), <a href="#" style="color:#0288d1; text-decoration:none">Northpond Ventures</a>, <a href="#" style="color:#0288d1; text-decoration:none">Sands Capital Ventures</a> <a href="#" style="color:#0288d1; text-decoration:none">+ 1 more</a></p></td></tr></tbody></table><h4 style="font-size:15px; font-weight:bold; margin:0; padding:20px 1px 10px">More Fundings</h4><table cellpadding="0" cellspacing="0" style="border-collapse:collapse; font-size:13px; width:100%"><thead><tr><th style="color:#666; padding:5px 1px; font-weight:normal; text-align:left">Company</th><th style="color:#666; padding:5px 1px; font-weight:normal; text-align:left">Amount / Round</th><th style="color:#666; padding:5px 1px; font-weight:normal; text-align:left">Lead Investor</th></tr></thead><tbody><tr><td style="border:1px solid #bbb; padding:7px"><a href="#" style="color:#0288d1; text-decoration:none">Onego Bio</a></td><td style="border:1px solid #bbb; padding:7px">27M EUR / <a href="#" style="color:#0288d1; text-decoration:none">Series A</a></td><td style="border:1px solid #bbb; padding:7px"><a href="#" style="color:#0288d1; text-decoration:none">NordicNinja VC</a></td></tr><tr style="background:#f6f6f6"><td style="border:1px solid #bbb; padding:7px"><a href="#" style="color:#0288d1; text-decoration:none">TerraClear</a></td><td style="border:1px solid #bbb; padding:7px">$15M / <a href="#" style="color:#0288d1; text-decoration:none">Venture Round</a></td><td style="border:1px solid #bbb; padding:7px">-</td></tr><tr><td style="border:1px solid #bbb; padding:7px"><a href="#" style="color:#0288d1; text-decoration:none">BioConsortia</a></td><td style="border:1px solid #bbb; padding:7px">$15M / <a href="#" style="color:#0288d1; text-decoration:none">Venture Round</a></td><td style="border:1px solid #bbb; padding:7px"><a href="#" style="color:#0288d1; text-decoration:none">Otter Capital</a></td></tr></tbody><tfoot><tr><td colspan="5" style="border:1px solid #bbb; padding:7px; text-align:center"><a href="#" rel="noopener" target="_blank" style="color:#0288d1; text-decoration:none">All Recent Funding Activity</a></td></tr></tfoot></table></td></tr><tr><td><img alt="" height="30" src="http://c0185784a2b233b0db9b-d0e5e4adc266f8aacd2ff78abb166d77.r51.cf2.rackcdn.com/blank.png" width="520" style="border:0; height:30px; margin:0; padding:0; width:520px"></td></tr><tr><td><h3 style="background:#0288d1; border:1px solid #00559d; color:#ffffff; font-size:15px; font-weight:bold; line-height:21px; margin:0; padding:5px 10px">Recent Acquisitions</h3></td></tr><tr><td style="background:#fff; border:1px solid #cdcdcd; border-top:0; color:#333; font-size:14px; padding:15px 20px 20px"><table><tbody><tr><td style="width:80px"><a href="#"><img src="https://images.crunchbase.com/image/upload/c_pad,h_60,w_60/ts9l7jnwijsnxvdgu5no" style="border:1px solid #bbb; height:60px; width:60px"> </a></td><td><p style="font-size:20px; font-weight:bold; margin:0"><a href="#" style="color:#0288d1; text-decoration:none">SWDP</a></p><p style="font-size:15px; margin:0; padding:5px 0 0">Pending acquisition by <a href="#" style="color:#0288d1; text-decoration:none">Nucor Corporation</a> for <span style="color:#333; font-weight:bold">$115M</span></p></td></tr></tbody></table><h4 style="font-size:15px; font-weight:bold; margin:0; padding:20px 1px 10px">More Acquisitions</h4><table cellpadding="0" cellspacing="0" style="border-collapse:collapse; font-size:13px; width:100%"><thead><tr><th style="color:#666; padding:5px 1px; font-weight:normal; text-align:left">Company</th><th style="color:#666; padding:5px 1px; font-weight:normal; text-align:left">Acquired By</th><th style="color:#666; padding:5px 1px; font-weight:normal; text-align:left">Amount</th></tr></thead><tbody><tr><td style="border:1px solid #bbb; padding:7px"><a href="#" style="color:#0288d1; text-decoration:none">East End Advisors</a></td><td style="border:1px solid #bbb; padding:7px"><a href="#" style="color:#0288d1; text-decoration:none">Alvarium Tiedemann</a></td><td style="border:1px solid #bbb; padding:7px">$76M</td></tr></tbody><tfoot><tr><td colspan="5" style="border:1px solid #bbb; padding:7px; text-align:center"><a href="#" rel="noopener" target="_blank" style="color:#0288d1; text-decoration:none">All Recent Acquisition Activity</a></td></tr></tfoot></table></td></tr><tr><td><img alt="" height="30" src="http://c0185784a2b233b0db9b-d0e5e4adc266f8aacd2ff78abb166d77.r51.cf2.rackcdn.com/blank.png" width="520" style="border:0; 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