AI startups drive VC funding resurgence, capturing record US investment in 2024

In 2024, U.S. venture capital funding saw a 30% increase from the previous year, with AI startups leading the way by raising a record 46.4% of the total $209 billion. The enthusiasm for AI technology, fueled by successful companies like OpenAI and xAI, has revived investor interest, though sustainability remains uncertain amidst challenges in exits and IPOs. The incoming U.S. administration is expected to boost the M&A and IPO market, with optimism for more VC-backed companies going public in the second half of 2025.

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