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Q2 2023
Emerging Tech Indicator
September 5, 2023
AI & ML and e-commerce emerge as up-and-coming tech areas
PitchBook's Emerging Tech Indicator tracks angel, seed, and early-stage investments at the world's 15 most successful VC firms to determine the most promising areas of tech.
In Q2 2023, ETI deals decreased to $3 billion over 120 deals, down from $3.18 billion and 133 deals in Q1. Propelled by the generative AI buzz, AI and machine learning continued to attract significant investments. AI & ML and e-commerce—the top sectors for ETI investment—secured $646 million and $533 million, respectively. Following these were biotech with $470 million; fintech with $308 million; and infosec with $208 million.
Web3 and decentralized finance investments dwindled, with just $159 million across five deals, reflecting challenges such as regulatory scrutiny and rising interest rates.
Table of contents
PitchBook's Emerging Tech Indicator tracks angel, seed, and early-stage investments at the world's 15 most successful VC firms to determine the most promising areas of tech.
In Q2 2023, ETI deals decreased to $3 billion over 120 deals, down from $3.18 billion and 133 deals in Q1. Propelled by the generative AI buzz, AI and machine learning continued to attract significant investments. AI & ML and e-commerce—the top sectors for ETI investment—secured $646 million and $533 million, respectively. Following these were biotech with $470 million; fintech with $308 million; and infosec with $208 million.
Web3 and decentralized finance investments dwindled, with just $159 million across five deals, reflecting challenges such as regulatory scrutiny and rising interest rates.
Table of contents
| Introduction | 3 |
| Key takeaways | 4 |
| Deal activity | 5 |
| Areas of investment | 6 |
| ETI deal segment spotlights | 12 |
| AI & ML | 13 |
| Fintech | 17 |
| E-commerce | 21 |
| Biotech | 24 |
| Web3 & DeFi | 27 |
| Other notable activity | 30 |
| Venture activity summary | 32 |
| ETI investor ranking | 35 |