Global venture capital investments in the AI sector reached $20.2B in Q2 2023,

 

Global venture capital investments in the AI sector reached $20.2B in Q2 2023, surpassing the $2.2B invested in crypto startups during the same period.  While overall VC funding experienced a decline of 18% compared to the previous quarter, investment in AI remained steady. In contrast, global VC investments in crypto fell below 2020 levels, influenced by bankruptcies, regulatory challenges, and falling token prices. Due to the broader range of use cases offered by AI, investors are increasingly drawn to the sector, leading some crypto-focused VC firms to shift their focus entirely to AI. However, there are still investors who see promise in the intersection of AI and crypto, with startups like Tools For Humanity and Gensyn securing substantial funding in the second quarter. For the latest on AI startup funding and more in the VC community, subscribe to our Inside Venture Capital newsletter.