Analytics

U.S. App Startups See Decline in Funding as Investors Shift Focus to AI

In a notable shift within the U.S. venture capital landscape, the once-dominant app startups are now seeing a marked decline in funding. This year, venture capitalists have poured approximately $3 billion into app startups, a significant decrease compared to previous years, according to data from Crunchbase. This change is particularly striking given that in 2016, app startups accounted for 14% of all U.S. funding. However, fast forward to 2023, and their share of the capital pie has dwindled to a mere 2.5%, despite the ever-growing popularity of applications.