AI Firms Raise Total of $12 Billion in Third Quarter

Venture capital continues to pour into artificial intelligence startups, with the sector raising a record $53 billion year-to-date despite market volatility. In a testament to AI’s growing influence, legal tech startup EvenUp has joined the unicorn club with a $135 million Series D round, while investment giant VanEck launches a $30 million fund targeting AI and blockchain innovations.

AI Startup Funding Remains Robust Despite Market Volatility

Artificial intelligence startups continue to attract significant venture capital despite broader market headwinds, according to recent data from Stocklytics. In the third quarter of 2024, AI firms raised $11.8 billion, accounting for approximately 30% of total VC investments globally.

“The AI sector remains a long-term growth opportunity for VC investors despite the volatility seen in recent months,” Stocklytics wrote. “Although they are being more selective about which AI startups to back, the overall interest remained strong, and Crunchbase data proves this.”

While this figure represents a slight decline from previous quarters, Stocklytics reports it marks the sixth-largest quarterly funding total in the sector’s history. The number of deals decreased 28% year-over-year to 79, but more significant investments, such as a $1 billion round for Safe Superintelligence, have buoyed overall funding levels.

Year-to-date, AI startups have raised a record $53 billion, surpassing the $49.4 billion raised in all of 2021, Stocklytics data shows. This brings the cumulative funding in the AI sector to over $241 billion, with U.S. companies, particularly those in California, securing nearly 65% of the total.

Despite concerns over expanded U.S. export restrictions on AI chips to China and valuation worries, investors continue to view AI as a long-term growth opportunity. However, Stocklytics notes that investors are becoming more selective, focusing on companies with strong potential for sustainable growth and profitability.

VanEck Ventures into AI with $30 Million Fund

Investment giant VanEck is making a strategic move into artificial intelligence with the launch of a $30 million venture fund. The new initiative, VanEck Ventures, will focus on early-stage investments in FinTech, digital assets and AI.

The fund, led by former Circle Ventures executives Wyatt Lonergan and Juan Lopez, aims to capitalize on the convergence of stablecoins, blockchain technology and recent AI breakthroughs. “AI advancements are creating unprecedented opportunities for globally connected, user-centric financial experiences,” said Lonergan.

VanEck CEO Jan van Eck sees the fund as an extension of the firm’s early identification of transformative market trends. The company manages nearly $114 billion in assets and has a track record of pioneering investments in emerging sectors.

The fund plans to make 25 to 35 investments, with individual checks ranging from $500,000 to $1 million. It will target companies leveraging AI and blockchain technologies to build next-generation financial applications and marketplaces.

As regulatory clarity around blockchain and AI continues to evolve, VanEck Ventures aims to position itself as a key player in shaping the future of finance through strategic investments in cutting-edge technologies.

Legal AI Startup EvenUp Raises $135 Million

EvenUp, a San Francisco-based legal technology startup, announced it has raised $135 million in Series D funding, valuing the company at over $1 billion. Bain Capital Ventures led the round, which included several other venture firms.

The company, which specializes in AI-powered tools for personal injury law firms, also unveiled four new products as part of its Claims Intelligence Platform. These include Case Preparation, Negotiation Preparation, Executive Analytics and Settlement Repository.

EvenUp’s CEO Rami Karabibar stated in a news release that the funding will further their mission to “close the justice gap through technology and AI.” The company claims to have helped law firms claim over $1.5 billion in damages and flag $200 million in missing documents for cases.

Aaref Hilaly, partner at Bain Capital Ventures, praised EvenUp’s approach, saying, “EvenUp’s multi-product approach is the perfect example of how Gen AI can help people in the real world.”

The funding comes amid growing interest in AI applications for the legal sector, with EvenUp positioning itself as a leader in document drafting and workflow optimization for personal injury cases.