Fundraising

Speculation about mega-sized AI IPOs has growing numbers of VC-backed companies also queueing up to go public, while increasing demand for scale and strategic growth is expected to be a key factor in M&A activity.

Funding to AI-related start-ups spiked 75% to $203bn from 2024, with foundation model companies representing 40% of that globally and US companies dominating.

The Middle East and North Africa region has become increasingly attractive to managers as they attempt to tap its massive stock of sovereign wealth fund capital.

In response to extended fundraising periods, start-ups are raising bigger seed rounds to bridge the gap, shows JPMorgan’s latest half-year report.

Investors seem to be directing more capital to support existing portfolio companies instead of pursuing new investments, while earlier timing for mega-deals suggests a push to accelerate development to beat competitors.

Fund III was anchored by Cendana Capital and includes commitments from Intact Ventures, Atacama Ventures, NVNG Investment Advisors and strategic investor Schreiber Foods.

By 2030, AI will replace 'almost all experts in every area,' including oncologists, accountants, salespeople and structural engineers, says famed venture capitalist Vinod Khosla.

‘LPs now would favor a slightly lower return with a current distribution than a potential higher return in a future distribution,’ says managing partner William Barrett.

Part two of our venture outlook delves into concerns about growing amounts of capital going to a smaller, select group of companies, while AI threatens to inflate valuations.

AI, robots, secondaries, climate, women-led funds and data centers were the topics of most interest to Venture Capital Journal readers in 2024.