Sector Snapshot Key Trends in Dealmaking Artificial Intelligence

Sector Snapshot: Key Trends in Dealmaking Artificial Intelligence | 5 Financing metrics reflect bothmarket conditions and industry shifts, especially pertaining to concentration. Frontier Large Language Models (LLMs) are composed of mostly closed-source models created by tech giants that can fund massive spending on datasets, infrastructure, and training, while VCs are seeking the open-source, cutting-edge AI plays that do not have to contend at such scale. Late – and growth – stage valuations normalize as earlier metrics hold strong Median AI &ML VC deal value ($M) by stage *As of 02/20/2024. Note: 2024* venture growth figures are based on a non-normative population size. Source: PitchBook. Pre-seed/Seed Early VC Later VC Venture Growth Pre-seed/Seed Early VC Later VC Venture Growth Across the board, valuations hit new highs except in a handful of venture-growth deals Median AI &ML VC post-money valuation ($M) by stage *As of 02/20/2024. Note: 2013 and 2024* venture growth figures are based on a non-normative population size. Source: PitchBook. 2018 2020 2023 2019 2021 2022 2024* 2015 2014 2016 2017 2013 $600 $500 $400 $300 $200 $100 $0 2018 2020 2023 2019 2021 2022 2024* 2015 2014 2016 2017 2013 $35 $30 $25 $20 $15 $10 $5 $0