Venture dealmaking is coming back — at least, for artificial intelligence companies.
Last quarter, US venture capitalists spent $55.6 billion backing startups, up by about half from a year earlier quarter and the spendiest quarter in two years, according to PitchBook data.
But the money went to just 3,108 transactions, the fewest since the second quarter of 2020. The concentration signals that a handful of large AI transactions are skewing the results, including the $1.1 billion raised by AI cloud computing company CoreWeave and the $6 billion raised by Elon Musk’s xAI.
The spending picture partly reflects the subdued fundraising environment. US venture funds raised $37.4 billion across 255 funds in the first half of the year, an uptick from the $33.3 billion raised across 233 funds a year earlier. However, a significant amount of that cash went to a few large players — of the latest total, Andreessen Horowitz raised more than $7 billion, and Norwest Venture Partners and TCV each raised $3 billion.
“Billion dollar funds have been raised, but potentially at the expense of smaller, emerging managers,” PitchBook analysts wrote in an email.
Exits, meaning startups that either got acquired or went public, totaled $23.6 billion for the quarter. That sum, the most in two years, reflects an increase of almost $2 billion over the first quarter, and more than three times the year-earlier quarter.
Globally, deals also trended up, again driven by a handful of large transactions. Global activity totaled $94.3 billion in the quarter, up almost 11% over the year-ago quarter. VCs raised $80.5 billion across 632 funds.
Advisors previously with UBS, Edward Jones head for new firms.
Principal Financial Group’s Teresa Hassara shares data showing account balances rising and Roth adoption accelerating.
Trevor Uhls was charged with wire fraud and money laundering in a criminal complaint filed in U.S. District Court for the Western District of Missouri.
The multigenerational Cedar Rapids firm is joining through a key OSJ as recruiting competition heats up across the wealth space.
New Treasury guidance sets fee caps, defines index-tracking rules, and bars ESG-linked funds from the tax-deferred accounts for minors
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
