Tracxn, a leading market intelligence platform, has released its Geo Quarterly Report: US Tech Q3 2024. According to the document, the United States remained the country with the highest funding during the mid-year quarter of this year.
US-based tech startups raised $21.7 billion, a drop of 38.15% compared to $35.08 billion raised in the previous quarter (Q2 2024). This is also 21.38% lower than the $27.60 billion raised in the corresponding quarter last year (Q3 2023).
Late-stage funding fell 23.59% to $11.82 billion during the third fiscal quarter of this year, from $15.47 billion raised in the previous quarter. The ecosystem secured seed-stage investments worth $1.84 billion in the third quarter of this year, a minor drop of 1.6% compared with the $1.87 billion raised in Q2 2024. Early-stage funding fell 54.63% to $8.03 billion in Q3 2024 from $17.7 billion raised in Q2 2024.
Thirteen new unicorns emerged in Q3 2024, a massive improvement from five unicorns in Q3 2023. The country’s tech startup landscape witnessed forty-four 100M+ funding rounds during the quarter, of which two were higher than $1 billion. Anduril raised a total of $1.5 billion in a Series F round led by Founders Fund, valuing the company at over $14 billion. In comparison, SSI raised a total of $1 billion in a seed round led by NFDG, valuing the company at over $5 billion.
The top-performing sectors during this third fiscal quarter were High Tech, Enterprise Applications, and Enterprise Infrastructure. High Tech companies witnessed a 36% decline in funding compared to the second quarter of 2024. The Enterprise Applications segment saw a 52% drop in funding during this quarter compared to the previous quarter and funding raised by the Enterprise Infrastructure sector rose 8% in Q3 2024 compared to Q2 2024.
The number of acquisitions fell to 243 in this quarter from 354 during the previous quarter of this year and 344 in the corresponding quarter in 2023. Only a handful of tech startups took the IPO route, with the number of IPOs falling to five in Q3 2024, as against 19 in Q2 2024 and 14 in Q3 2023. Bicara Therapeutics, Actuate Therapeutics, and OS Therapies were some of the companies that went public in Q3 of this year.
Tech startups based in San Francisco dominated the funding landscape, raising $4.4 billion in the third quarter of 2024. Companies based in New York City and Palo Alto raised $2.2 billion and $2.1 billion respectively during the same period.
Despite the overall decline in funding, the surge in unicorn creation suggests that investor confidence remains steady. The US startup ecosystem continues to show resilience, adapting to challenges posed by the current global macroeconomic climate.
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