The boom is providing tailwinds for every stage of the startup lifecycle.
Early-stage companies are taking 3 out of 4 deals in AI, while the AI M&A wave is in full force. 2024’s 384 exits nearly rival the previous year’s record-high 397.
Outside of AI, venture dealmaking is in a drought
Globally, deal activity fell 19% YoY in 2024 to its lowest annual level since 2016.
The slump was especially pronounced in China (-33% YoY drop in deals), Canada (-27%), and Germany (-23%).
IPO timelines continue to be long
From first funding to IPO, VC-backed companies that went public in 2024 waited a median of 7.5 years.
That’s 2 years longer than in 2022.
Amid unfavorable market conditions, some late-stage players like Stripe and Databricks have resorted to raising additional equity funding or selling private shares in lieu of going public.
Accessibility fail: AI startup accessiBe got hit with a $1M FTC fine for exaggerating how well its tools make websites ADA-compliant and secretly paying for positive reviews. The FTC is requiring the company to stop overhyping its tech, disclose sponsored endorsements, and potentially use part of the fine to reimburse misled customers.
Y2K 2.0: LA County Sheriff’s dispatch system broke down on New Year’s when its software — dating back over 38 years — failed to recognize the year 2025, forcing deputies to rely on radios and handwritten notes. A “temporary fix” restored operations Friday, but officials say the system still needs replacing. Testing for a new one will begin next week.
Pivot for the ages: Chinese self-driving truck company TuSimple rebranded as CreateAI, shifting focus to video games and animation. Two years after his return following an ousting, CEO Cheng Lu expects the pivot will help the company break even by 2026. Not everyone’s on board — co-founder Xiaodi Hou opposes the move.
Visa vis: Steve Bannon told Elon Musk to “sit in the back and study” as tensions rise between Trump’s Silicon Valley allies and the rest of his base over H-1B visas for skilled workers. Musk — who is set to co-chair Trump’s Department of Government Efficiency — defended the visas.
TikTok, on the clock: With under two weeks until the potential US TikTok ban, influencers are sharing workarounds like VPNs and “sideloading” (installing apps outside official stores) to keep users on the platform. The Supreme Court will hear TikTok’s challenge on January 10, but if the ban stands, tech giants like Apple and Google must enforce it by removing TikTok from their platforms or risk billions in fines.
