How Big Money Is Leaving Most Startups Behind
For elite VC investors backing companies like OpenAI and SpaceX, 2024 has been an amazing year with multi-billion-dollar deals and sky-high valuations. But step outside this exclusive circle, and you’ll find a very different story—especially in Europe, where funding has dropped to less than half of what it was in 2021. Money is now going mostly to a few famous companies, creating a clear split between winners and losers in the global startup world. This division is changing the innovation landscape in major ways. Founders, investors, and entire tech regions need to understand these changes to survive in today’s venture capital reality.
The Numbers Show Two Different Worlds
The 2024 numbers reveal two completely separate venture capital markets operating at the same time. According to Crunchbase, North American funding jumped in late 2024, driven mainly by AI deals and billion-dollar investments in established companies. Meanwhile, European funding fell to $51 billion in 2024, down 5% from $54 billion in 2023.
“European tech funding has stabilised at $45 billion in 2024 after a significant drop in 2023,” reports Atomico’s State of European Tech 2024. This is less than half of the $100 billion peak reached in 2021.
Full story: Venture Capital’s Dangerous Divide: The $6.6 Billion Mega Deals And Everyone Else
