New research has revealed that the healthcare sector recorded a 30 per cent decline in funding rounds between Q1 and Q3 of 2024.
Between Q1 and Q3 of 2024, the total number of healthcare funding rounds reached 6,551 marking a 30 per cent decrease from the same period last year.
Overall, the software sector recorded the highest number of global funding rounds in 2024, with a total of 11,265 investors. This highlights the growing role of technology in driving economic growth and expanding innovation, as Statista revealed that in 2023, more than half of the global GDP would be driven by “digitally transformed” enterprises.
However, Crunchbase reported that AI-enabled assistants and agents saw the biggest trend for seed investment in recent months, demonstrating investors’ confidence in AI as a driving force for future tech innovation. This comes as the AI market is projected to reach $1,339 billion by 2030.
Across all sectors there has been a slight slowdown in funding, however some pockets of growth emerged within robotic process automation which saw an 86 per cent increase, while intelligent systems and generative AI businesses rose by 22.4 per cent and 18 per cent respectively.
“We are at a critical juncture in the global investment landscape. As funding struggles to regain momentum following broader market uncertainties, investors have become more selective, leading to many industries observing a slowdown in funding,” said Ifty Nasir, CEO of Vestd which conducted the report.
“This shift in the investment market presents a unique opportunity for founders to refine their value propositions and become resilient in demonstrating their growth potential and market fit. Increasingly, investors are focused on businesses that not only present a clear path to profitability but also align with key market drivers like operational efficiency and innovation.”
