State of the Markets H1 2024

SVB’s Innovation Economy Outlook

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Key takeaways

Our H1 2024 State of the Markets report finds that, two years into the most significant contraction of the innovation economy since the dot-com crash, signs of normalization — and even recovery — are emerging.

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Funds closed in 2023 focused on AI

Innovation related to artificial intelligence was a bright spot, driving a large portion of US VC fundraising and investment in 2023.


Of US VC-backed tech companies reduced net burn

Tech companies are adapting to the new financial normal, with the highest number in recent history reporting year-over-year reductions in net burn rates.


Of companies went on to raise another equity round following a down round

Down rounds aren’t the end of the line which is a good sign when at least 13% of all US VC deals in 2023 were down rounds.