Key Takeaways
Consumer internet has reached an inflection point. Companies that garnered staggering valuations during the 2021 VC peak are reinventing themselves in an era of more measured expectations and less-abundant capital. Our latest Consumer Internet report finds that founders are increasingly pursuing profitability at the expense of growth and VC-backed consumer companies are becoming significant acquirers of other startups.
<20% median year-over-year revenue growth for consumer startups
Year-over-year growth has continued to slow after reaching more than 50% in 2021.
$1.3B total US VC investment in AI assistants in 2024
In 2023, the figure was $205M.
1/3 of consumer internet M&A deals went to a VC-backed buyer
Companies are taking advantage of low valuations and fierce competition to absorb rivals and add capabilities.
Read the full State of Consumer Internet report
The latest report on the state of the consumer internet sector offers expert analysis of proprietary data to locate opportunities and assess challenges.
Consumer startups trade growth for profitability
Consumer startups cut burn rates for a second year in a row, amid pressure to pursue profitability and create longer cash runway.
This profitability has come at a cost to year-over-year revenue growth, which fell to its lowest rate in recent history.
Source: PitchBook Data, Inc., SVB proprietary data and analysis.
Source: PitchBook Data, Inc. and SVB analysis.
Investment in AI assistants skyrockets
U.S. investment in AI assistants grew six times between 2023 and 2024, from $205M to $1.3B.
While enterprise applications and foundational models attracted more total dollars, opportunities in consumer use cases for generative AI may continue to grow.
The stable of consumer unicorns is getting crowded
The current stable of 103 U.S. VC-backed consumer internet unicorns represents a combined value of more than $400B.
That’s about half the total value of consumer internet IPOs over the last 15 years, raising the question of how exactly they will find an exit.
Source: S&P Capital IQ, PitchBook Data, Inc. and SVB analysis.
Download the full State of Consumer Internet report
Explore other SVB reports
Written and researched by SVB experts
Our deep relationships with top entrepreneurs and investors inform our insights and give us a vantage point unlike any other bank.
The views expressed in this report are solely those of the authors and do not necessarily reflect the views of Silicon Valley Bank, a division of First-Citizens Bank.
This material, including without limitation to the statistical information herein, is provided for informational purposes only. The material is based in part on information from third-party sources that we believe to be reliable but which has not been independently verified by us, and, as such, we do not represent the information is accurate or complete. The information should not be viewed as tax, accounting, investment, legal or other advice, nor is it to be relied on in making an investment or other decision. You should obtain relevant and specific professional advice before making any investment decision. Nothing relating to the material should be construed as a solicitation, offer or recommendation to acquire or dispose of any investment, or to engage in any other transaction.
All non-SVB named companies listed throughout this document, as represented with the various statistical, thoughts, analysis and insights shared in this document, are independent third parties and are not affiliated with Silicon Valley Bank or First Citizens Bank & Trust Company. All third-party trademarks, logos, and brand names are the property of their respective owners and are herein used for informational purposes only. Any predictions are based on subjective assessments and assumptions. Accordingly, any predictions, projections or analysis should not be viewed as factual and should not be relied upon as an accurate prediction of future results.