AI funding sets record in Q2 with $2.3 bln targeting U.S. companies

Venture funding for artificial-intelligence companies hit another record in the second quarter, with $2.3 billion going to U.S.-based startups.

The quarter was the second in a row to set a funding record, with dollars disbursed climbing 21 percent from the $1.9 billion of the first quarter, according to the MoneyTree Report put together by PricewaterhouseCoopers and CB Insights.

The financial momentum underscores the stampede of interest now evident in venture circles for this complex technology as it infuses its way into numerous industries, from cyber security to information processing. In 2017, the average quarterly funding was $1.3 billion.

The second-quarter total was lifted by large, later-stage deals. Eight rounds of more than $100 million were signed, with Dataminr raising $392 million and CrowdStrike collecting $200 million, both in Series E transactions.

Source: MoneyTree Report from PricewaterhouseCoopers and CB Insights.

Tanium also attracted $175 million and Cylance, $120 million.

The quarter witnessed a softening of early-stage activity and saw expansion-stage deal making tick higher. Overall, the deal total was essentially flat, with 124 transactions taking place, one less than the first quarter.

California saw the vast majority of deals.