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What happened:It's no surprise that investors are pumping more funding into generative AI startups. In a recent report , CB Insights confirmed a "massive opportunity for investors to get in early on this potentially transformative technology." What the numbers say:According to CB Insights, 2022 set a record for the amount of investment pumped into generative AI-focused startups. Equity funding reached nearly $2.6B across 110 deals, up from $71M across 23 deals in 2017. Who's involved:Last year, the largest funding rounds in the space went to AI model developer Anthropic, which raised a& $580M Series B , and Inflection AI, a computing startup from co-founders of LinkedIn and DeepMind, which secured $225M . The most active VC in generative AI was Insight Partners, which has backed seven generative AI companies since 2021. Why it matters:CB Insights notes that the generative AI space is still nascent. As of 2022, one-third of the 250+ generative AI companies it identified hadn't brought in any outside equity funding, and around 50% were Series A or earlier, making the space ripe for investors. |
