Recent Trends in Large Venture Financing Rounds
Over time, there have been huge shifts in the amount of financing required to start and scale businesses. Advances such as cloud computing and open-source software have enabled technology startups to commence and grow their operations with less funding than historically required. At the same time, newly formed life sciences companies and AI-driven companies have not been so fortunate and can remain capital-intensive enterprises.
2015 was the first year to see 100 rounds in which companies raised $100 million or more in venture financing. Increased participation by growth equity, crossover and hedge funds attracted by the lure of pre-IPO companies offering the potential for outsized returns contributed to the number of so-called “mega-rounds” raising $100 million or more, which jumped from 111 in 2015 to 859 in 2021.
The number of rounds in which companies raised $100 million or more fell by more than one-third to 529 in 2022, and then fell again by more than one-half to 258 in 2023. The number rebounded in 2024 to 384. Even though fewer than half as many financings of $100 million or more occurred in 2024 as did in the more favorable funding environment of 2021, 2024 still represents the third-highest annual figure on record.
California accounted for half of all rounds in which companies raised $100 million or more in 2024. Three leading states—California, New York and Massachusetts—together accounted for three-quarters of the total “mega-rounds” in 2024.
In 2024, technology companies accounted for 41% of financing
rounds of $100 million or more, compared with 35% for healthcare
and life sciences companies. By comparison, healthcare and life
sciences companies accounted for roughly 25% of such rounds
from
2021 to 2022.
Artificial intelligence and machine learning companies (which
encompass companies across industries) accounted for 32% of
financing rounds of $100 million
or more in 2024, up steadily from 26% in 2022 and 21% in 2020.
The following tables look in more detail at recent trends in large venture financing rounds.
Number of Large Rounds by Venture Financing Threshold
| YEAR | $50 MILLION | $100 MILLION | $200 MILLION | $250 MILLION | $500 MILLION | $1 BILLION |
|---|---|---|---|---|---|---|
| 2024 | 765 | 384 | 131 | 92 | 33 | 16 |
| 2023 | 598 | 258 | 90 | 68 | 20 | 10 |
| 2022 | 1,091 | 529 | 165 | 97 | 24 | 7 |
| 2021 | 1,644 | 859 | 336 | 223 | 70 | 22 |
| 2020 | 803 | 349 | 124 | 84 | 24 | 5 |
| 2020 to 2024 | 4,901 | 2,379 | 846 | 564 | 171 | 60 |
Number of Companies Raising Venture Financing Rounds of $100 Million or More by State or Company Headquarters
| YEAR | CA | NY | MA | TX | CO | WA | FL | US TOTAL |
|---|---|---|---|---|---|---|---|---|
| 2024 | 193 | 57 | 39 | 11 | 13 | 9 | 10 | 384 |
| 2023 | 107 | 35 | 45 | 9 | 9 | 2 | 4 | 258 |
| 2022 | 233 | 59 | 66 | 20 | 19 | 18 | 19 | 529 |
| 2021 | 397 | 132 | 97 | 28 | 20 | 21 | 16 | 859 |
| 2020 | 181 | 39 | 39 | 12 | 6 | 9 | 3 | 349 |
| 2020 to 2024 | 1,111 | 322 | 286 | 80 | 67 | 59 | 52 | 2,379 |
Number of Companies Raising Venture Financing Rounds of $100 Million or More by Industry Group and in Artificial Intelligence & Machine Learning
| YEAR | B2B | B2C | FINANCIAL SERVICES | HEALTH-CARE | TECH-NOLOGY | OTHER | US TOTAL | AI & MACHINE LEARNING |
|---|---|---|---|---|---|---|---|---|
| 2024 | 39 | 17 | 20 | 135 | 156 | 17 | 384 | 124 |
| 2023 | 45 | 14 | 11 | 85 | 88 | 15 | 258 | 76 |
| 2022 | 44 | 44 | 42 | 124 | 241 | 34 | 529 | 140 |
| 2021 | 84 | 87 | 64 | 219 | 376 | 29 | 859 | 225 |
| 2020 | 30 | 42 | 27 | 111 | 130 | 9 | 349 | 75 |
| 2020 to 2024 | 242 | 204 | 164 | 674 | 991 | 104 | 2,379 | 640 |
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
