Startup funding is the money needed to get a new business off the ground. It is typically provided by investors who take a large risk on the startup in exchange for a share of the company. Startup funding may also be available through programs such as startup accelerators and incubators. Founders may also be able to secure startup funding by taking out a small-business loan or using their own personal savings.
Startups seeking investment funding should have a well-articulated business plan, a strong team of leaders, and an opportunity to build a sustainable advantage in the market. Investors often want startups to demonstrate consistent revenue growth, a clear path to liquidity through an acquisition or an IPO, and sound financials.
North America continues to lead the global venture funding market, with $90 billion invested in seed through growth-stage rounds for U.S. companies in H1 — up 43% year over year, according to Crunchbase data. AI once again dominated the quarter, with deals such as Meta’s $14.3 billion investment in Scale AI and a $900 million Series C for GenAI-based software company Anysphere leading the way.
Other significant startup funding activity included a $3 billion Series D round for cloud-based accounting platform ServiceNow, a $2 billion acquisition of accounts payable vendor Melio by Xero, and Modernizing Medicine’s majority stake sale to Clearlake Capital Group at a reported $7.6 billion valuation. Meanwhile, Europe’s late-stage rounds slipped on both a sequential and annual basis, pulling the continent’s share of global venture funding from 19% in Q2 to just 13% in the first six months of 2024.