AI is becoming more influential/ Records were set in Q2 for startup funding, unicorns and IPOs

AI is becoming more influential/ Records were set in Q2 for startup funding, unicorns and IPOs

17. August 2021 0 By Horst Buchwald

AI is becoming more influential/ Records were set in Q2 for startup funding, unicorns and IPOs

San Francisco, 8/17/2021

According to a report from CB Insights, the second quarter of 2021 was the strongest in the history of AI funding. Although overall deal volume declined, AI startups received record funding of more than $20 billion.

The second quarter also saw a record number of AI unicorns, i.e., startups reaching a valuation of more than USD 1 billion, with 24 companies. The number of AI exits also reached a new high, increasing 125% from the previous quarter.

The 11 AI IPOs in the second quarter were also a record.

U.S. companies accounted for 41% of all venture capital funding, 39% more than in 2020, with China second at 17%. Healthcare AI accounted for the largest share of deals in Q2 at 17%.

According to IDC, global AI investment is expected to reach $110 billion by 2024, up from $50 billion in 2020.

In its latest Worldwide Semiannual Artificial Intelligence Tracker, International Data Corporation (IDC) forecasts that global AI market revenues will increase 15.1% to $341.8 billion by 2021.

Among the three revenue categories – software, hardware and services – AI software accounts for 88% of the total AI market.

While AI software has the largest share among the categories, AI hardware may grow the fastest through 2023, while AI services are expected to grow the fastest.

The overall AI market is forecast to accelerate further with 18.8% growth through 2022. It could surpass $500 billion by 2024.

San Francisco, 8/17/2021

According to a report from CB Insights, the second quarter of 2021 was the strongest in the history of AI funding. Although overall deal volume declined, AI startups received record funding of more than $20 billion.

The second quarter also saw a record number of AI unicorns, i.e., startups reaching a valuation of more than USD 1 billion, with 24 companies. The number of AI exits also reached a new high, increasing 125% from the previous quarter.

The 11 AI IPOs in the second quarter were also a record.

U.S. companies accounted for 41% of all venture capital funding, 39% more than in 2020, with China second at 17%. Healthcare AI accounted for the largest share of deals in Q2 at 17%.

According to IDC, global AI investment is expected to reach $110 billion by 2024, up from $50 billion in 2020.

In its latest Worldwide Semiannual Artificial Intelligence Tracker, International Data Corporation (IDC) forecasts that global AI market revenues will increase 15.1% to $341.8 billion by 2021.

Among the three revenue categories – software, hardware and services – AI software accounts for 88% of the total AI market.

While AI software has the largest share among the categories, AI hardware may grow the fastest through 2023, while AI services are expected to grow the fastest.

The overall AI market is forecast to accelerate further with 18.8% growth through 2022. It could surpass $500 billion by 2024.

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