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Laxman Pai, Opalesque Asia: Global venture capital (VC) investment in generative artificial intelligence (GenAI) surged to $49.2 billion in the first half of 2025, outpacing the total for all of 2024 ($44.2 billion) and more than double the total for 2023 ($21.3 billion), revealed a study.
According to EY Ireland's latest Generative AI Key Deals and Market Insights study, the sharp rise in overall deal value comes despite a near 25% drop in the number of transactions for the first six months of 2025 versus the second half of 2024, as VC firms concentrate on more mature, revenue-generating AI companies, resulting in fewer but significantly larger deals.
Average transaction size for late-stage deals more than tripled to more than $1.55 billion, up from $481 million in 2024, while early-stage VC rounds declined, and angel and seed rounds saw no change.
The research highlights the growing disparity between the US and the rest of the world in terms of GenAI investment. American-based firms accounted for 97 percent of global GenAI deal value in the first six months of the year, with Europe, the Middle East, and Africa (EMEA) trailing at just 2 percent despite maintaining a steady number of deals. In China, the government is investing significantly in AI, as is local capital; however, the quantum of investment is difficult to track.
Capital from the Middle East is playing an increasingly prominent role in shaping global deal flow, continuing a trend that gathered pac...................... To view our full article Click here
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