The US led the tech sector in funding with $21.7 billion in 3Q, despite experiencing a 38.2% decline from the previous quarter, as reported by Traxcn.
The $21.7 billion in funding was also a 21.38% drop compared to the same period in 2023, the report noted.
The tech funding landscape for Q3 2024 was characterized by notable drops across various stages of investment.
The seed stage saw $1.84 billion in funding, marking a slight decline of 1.6% from $1.87 billion in Q2 2024, and a 6.6% decrease from $1.97 billion in the same quarter last year.
Early-stage funding plummeted to $8.03 billion, a staggering drop of 54.6% compared to $17.7 billion in Q2 2024 and down 31.4% from $11.7 billion in Q3 2023.
Late-stage funding declined to $11.82 billion from $15.47 billion raised in the previous quarter.
Despite these declines, Q3 2024 was marked by the emergence of 44 funding rounds exceeding $100 million. Notable companies such as Anduril, SSI, Figma, Groq, and Kiteworks successfully raised over $100 million. Additionally, several companies debuted on the public markets, including Bicara Therapeutics, Actuate Therapeutics, OS Therapies, and Concentra.
On the flipside, the creation of unicorns—startups valued at over $1 billion—surged in Q3, with 13 new unicorns established, representing a 160% increase compared to just five unicorns in the same period last year.
However, the total number of acquisitions fell to 243, a 29.4% decrease from 344 acquisitions in Q3 2023.
The quarter also saw significant acquisitions, with AMD acquiring ZT Systems for $4.9 billion, making it the highest-valued acquisition of the quarter.
"Despite the overall decline in funding, the creation of unicorns indicates that investor sentiment is stable," Traxcn wrote in a release.
"The US startup ecosystem has displayed resilience amid challenges arising from the current global macroeconomic scenario."