AI investment activity continues to slow down in Q3'22, with quarterly funding and deals dropping to 8-quarter lows.
Global AI funding fell 31% quarter-over-quarter (QoQ) to hit $8.3B — its lowest level since Q3’20. Deals also dropped for the second consecutive quarter, falling 11% QoQ to 672.
In line with this trend, $100M+ mega-rounds accounted for their smallest share of AI funding (40%) since Q2’20.
Below, check out a handful of highlights from our 137-page, data-driven State of AI Q3’22 Report. For deeper insights, all the record figures, and a ton of private market data, download the full report.
Q3’22 highlights across the AI ecosystem include:
- Mega-round funding came in at $3.3B, a 39% drop QoQ.
- Just 1 new AI unicorn was born, reflecting the broader slowdown in tech unicorn birth rate.
- Total global AI exits saw a 52% QoQ drop, decreasing from 109 to 52 deals in Q3’22. Of the exits, 45 (87%) were M&A deals — the fewest in 6 quarters.
- Insight Partners was the top VC investor for the third quarter in a row, backing 9 AI companies. Intel Capital also participated in 9 AI ventures, making it the most active CVC in Q3’22.
- Funding to Silicon Valley-based AI companies dropped 59% QoQ to hit $1.8B in Q3’22.
Download our Q3’22 State of AI Report to learn more about all these trends and more.If you aren’t already a client, sign up for a free trial to learn more about our platform.