AI startups raised $41.5 billion worldwide in five years
In just a few years, AI has become one of the biggest recipes for success in the startup world. AI startups are very popular with investors. Accordingly, startups in the industry have received above-average financing over the past five years. An international study by AI developer Gieni has shown that in the past five years alone, around $41.5 billion has flowed into a total of 536 companies founded worldwide. The AI sector is therefore in seventh place among the startup sectors with the highest investment amounts over the past five years.
“AI is the sustainable growth engine of the future”
“The results of our study clearly show that, despite its relatively new presence on the market, artificial intelligence has already taken on a central role in the startup landscape. While traditional industries such as manufacturing and IT continue to record the highest investment amounts, the rapid development of AI shows that this technology is not just a temporary phenomenon, but a sustainable growth engine of the future,” says Timur Göreci, Chief Revenue Officer of Gieni developer Orderfox Schweiz AG.
While the AI revolution continues to advance, other sectors are still holding their own in the top spots. The manufacturing industry is at the forefront. In the last five years, 322 companies have been founded worldwide, with a total of around $55.7 billion invested. A younger, but now just as traditional, sector follows behind: the IT sector has gained a total of 717 companies in the last five years, with a total of around $52.7 dollars invested. The healthcare sector, on the other hand, is in third place with an investment of $50.9 billion in a total of 683 companies.
“Startups should not be forced to look at the US, Asia or other markets to finance their expansion”
AI startups overtake automotive, energy, and fintech industries
AI has already managed to overtake some sectors. According to Gieni’s analysis, the automotive industry is a long way behind in seventh place, with around $36.5 billion for 106 companies. Investors invested almost $5 billion less in this area than in artificial intelligence. At the same time, this also means that in recent years around five times more AI startups have made their debut than automotive companies.
The energy sector is even further behind AI in ninth place with 184 companies founded and an investment sum of around $33.5 billion. The top ten are completed by the fintechs, which were also overtaken by AI. With 528 companies, roughly the same number of start-ups were launched here as in AI. Despite this, only around $31.8 billion flowed into the industry as investments.
“The significant investments and the high number of startups point to an impending era in which AI will play a key role in the further development and modernization of a wide variety of industries. It will be exciting to see how this dynamic will continue to unfold in the coming years and what new fields of innovation will emerge through the progressive integration of AI,” says Göreci.
