Venture funding for cloud startups in the U.S., Europe and Israel this year is projected to rise 27% year-over-year, increasing for the first time in three years, according to a report from VC firm Accel.
Generative artificial intelligence startups are getting 40% of all the venture capital funding that flows into cloud companies, according to venture investors Accel., which looks at key cloud and AI trends, Accel said that venture funding for cloud startups based in the U.S., Europe and Israel is projected to rise to $79.2 billion this year, with artificial intelligence fueling much of the recovery.
This pales in comparison with the 38% increase the Nasdaq saw this year and is also down 39% from the Euroscape index's peak hit back in 2021. Not a single company in Accel's Euroscape index has seen revenue growth of more than 40% per year this year, compared with 23 businesses achieving the feat in 2021.
OpenAI raised a dominant $18.9 billion in 2023-24, taking the lion's share of VC funding that went to U.S. genAI companies. In Europe, the biggest funding amounts went to Britain's Wayve, France's Mistral and Germany's Aleph Alpha.