The pandemic and resulting economic toll has presented challenging headwinds for startups. In this post we look back on Q2 ending funding trends for AI startups to determine the trajectory of innovation in this emerging technology sector.
Below we see that the number of funding events per quarter has been on a downward trend, with 122 deals closing in Q2. This implies that new innovations in the AI sector are slowing down as measured by the volume of disruptive companies attracting investments.
In addition, below we can see that the average funding per deal has also been on a slight downward trend with an average deal size of $29M in Q2. This implies that the market is somewhat cautious on the traction and growth potential of these AI startups.