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A Gloomy Quarter for Venture Capital
After analyzing the last quarter’s venture capital data from various angles, I have to admit that it was quite gloomy. Even AI didn’t change the picture much, but its impact is starting to show in other ways.
Limited Optimism
This month, The Exchange dove deeper into Q3 2023 venture capital data, taking a closer look at specific regions, countries, and sectors to add nuance to the numbers. I am glad we did, but I also have to acknowledge that our findings were pretty thoroughly summed up in our initial overview:
A Stumbling Global VC Market
- Once again last quarter, the global VC market continued to stumble.
- We still found some reasons for optimism in Europe, until we didn’t. Yes, investment volume slightly grew in the region compared to Q2 2023, according to PitchBook. But with macroeconomic and geopolitical worries failing to recede, we can’t bet on a recovery of exits and late-stage investing in the short-term.
A Dispiriting Picture
I am also glad we summed up Q3 in charts. But as we did them, it was also quite dispiriting to see that Latin America and the rest of the world, including Africa, barely registered in terms of dollar volume share.
Canadian Startups Struggle
One of the data points that stuck with me is that Canadian startups had a tough Q3; AI’s popularity didn’t make a big difference, despite the country’s edge in the matter. That said, Crunchbase found that AI startups globally raised more or less the same amount in the third quarter of this year than in Q2: some $10 billion.
Anthropic Secures Funding
But when Anthropic secured $1.25 billion in funding that could eventually reach $4 billion, it was from Amazon, not from a venture capital firm. On a related note, it is Big Tech indeed that seems to be reaping the first rewards from AI.
AI’s Impact on Big Tech
As our editor-in-chief Alex Wilhelm wrote, ‘a close reading of Alphabet’s and Microsoft’s third-quarter results shows that new AI tech is helping some of the world’s biggest companies grow their revenues.’ AI is finally resulting in real growth for Big Tech. There’s still hope that AI-related demand will benefit startups, but how and when remains to be seen — and will also depend on some critical decisions from venture capitalists.
The Rise of Robot Arms
- Roborock’s Roomba competitor gets a robot arm
- CES 2025: Nvidia, Samsung, Sony, Toyota reveals, plus more
The Future of AI
The Future of Venture Capital
As we look forward, it will be interesting to see how venture capital adapts to the changing landscape. Will we see a resurgence in investment in startups that are leveraging AI and other emerging technologies? Only time will tell.
Related Hardware
- Roborock’s Roomba competitor gets a robot arm
- CES 2025: Nvidia, Samsung, Sony, Toyota reveals, plus more
AI’s Impact on Society
As AI continues to evolve and become increasingly integrated into our daily lives, it will be essential to consider its impact on society. How will AI change the way we work, interact with each other, and make decisions? These are just a few of the questions that we will need to address as AI continues to advance.
Related News
Conclusion
In conclusion, the last quarter’s venture capital data was quite gloomy. However, AI is starting to show its impact in various sectors, and it will be interesting to see how venture capitalists adapt to this changing landscape.