Hi there, 

AI funding is down. 

Globally, it hit the lowest quarterly total since Q1’18 in Q1’23 (excluding OpenAI’s rumored $10B investment).

You’re wondering “how is that possible with all the generative AI momentum?”

Well…you’re right. 

Sorta. 

Generative AI is certainly booming. 

• 3 out of the 5 largest funding rounds in the quarter went to genAI companies; and

• there are 13 generative AI unicorns

But it’s not enough to make up for the slowdown in venture funding to AI overall. 

AI is the parent category here. Generative AI is a subset/child market within it. 

Q2 is likely on track for a bigger quarter as smart founders have all gotten the memo that liberally sprinkling the words “generative AI” into your pitch is the way to get that investor cash. 

But until then, get the scoop on the State of AI here.

I’ll be back

Q1’23 saw a near-frozen IPO market and slowing venture activity.

Despite these challenges, median valuations for Series A, B, and C startups recovered slightly quarter-over-quarter.

However, median valuations remain down across all stages year-over-year, some by 40%+.

Explore more trends across the tech valuation landscape in our Tech Valuations Q1’23 Report.

Dr. GenAI

Generative AI could have major implications for healthcare. 

Pharma players and hospital systems are already adopting the tech to generate synthetic patient data, design novel proteins in a fraction of the time, and more.

From protein and drug design to electronic health record documentation, we cover 7 key applications of generative AI in healthcare in this brief.

CB Insights customers, want to dive deeper into markets like generative AI-powered protein & drug design?

Check out investment activity, valuation comparisons, headcount trends, and more in our brand-new Market Report: Generative AI — protein & drug design.

How far will Wells go?

Wells Fargo is the fourth-largest bank in the US by total assets.

It’s turning to fintech startups to help meet customer demand for secure, seamless, and customized banking experiences.

Dive into the banking giant’s investments and partnerships across fraud, open banking, and more in our Wells Fargo strategy map.

What goes up

Investors poured over $12B into ultrafast delivery companies, sending their valuations sky-high.

Now, funding and valuations are plummeting.

From boom to burst, we cover the current state of the ultrafast delivery space in this research brief.

TechCrunch. Ron Miller (@ron_miller) and Alex Wilhelm (@alex) cover the AI funding slowdown and quote CB Insights Senior Editor Matthew Marwick.

Quartz. Ananya Bhattacharya (@_ananyaaa) dives into Elon Musk’s super app ambitions and mentions CB Insights research.

Smithsonian Magazine. Bhav Jain and Simar Bajaj (@SimarSBajaj) discuss the mental healthcare gap and cite CB Insights research.
 

I love you. 

Anand 

@asanwal 

P.S. We’ll be revealing our AI 100 winners LIVE on June 6. Register for the briefing today to save your spot.