U.S. startup funding declined significantly in 2023, dropping nearly 30% to $170.6 billion from $242.2 billion in 2022. What does this reduction mean for startup funding in the US? It creates a challenging environment, with investors becoming more cautious despite the ongoing excitement around emerging technologies like artificial intelligence (AI).
Despite these challenges, a list of recently funded startups in the US shows potential environmental opportunities. This article provides insights into the top funded startups in the US over the past year. By examining these high-profile companies, you will understand the trends and opportunities within the startup ecosystem. Let’s get started.
Popular Industries for Startup Funding in the US
Before you can look up the top-funded startups in the US, it’s important to know the sectors they belong to. Here are the top industries increasingly witnessing startup funding in the US.
Artificial intelligence (AI)
According to 60% of business people, artificial intelligence (AI) is the tech field with the most potential for major development. The AI industry has three main divisions: software, hardware, and services.
The artificial intelligence software business is the least rapidly expanding of the three, even though it accounts for 88% of the total AI market. In 2019, the artificial intelligence sector was worth $39.9 billion. Furthermore, by 2027, analysts predict that the industry will expand at a remarkable CAGR of 42.2%.
Nonetheless, one of the main advantages of launching an AI firm is its applicability to a wide range of businesses.
Biotechnology and Healthcare
Silicon Valley Bank said 2023 was the third largest year for U.S. venture capital invested in healthcare initiatives over the prior decade (down 14% from 2022). Biotechnology and pharmaceuticals are at the cutting edge of new medicines and medical advances.
These businesses should continue to thrive due to continuous research and development initiatives, innovative therapies, and the rise of customized medicine.
Digital health tools, telemedicine, and remote patient monitoring have increased significantly. Incorporating technology into healthcare delivery improves patient outcomes, lowers costs, and makes medical services more accessible.
Fintech
Financial technology is when you find technology applications that enhance and automate financial services. Fintech startups target many industries, including insurance, lending, personal financial management, and payment processing.
Startups could develop a mobile app that helps people easily track their spending and manage their money. Other startups may create a peer-to-peer lending platform that links lenders and borrowers directly.
Fintech firms provide organizations with cutting-edge solutions like supply chain financing or payment process optimization. Entrepreneurs who want to make it easier for businesses to take and process customer payments might build a payment platform.
Clean Energy and sustainable
The world of the future lies in clean energy. It benefits both the economy and the environment. According to IRENA, Renewable energy can contribute $98 trillion to global GDP by 2050. Many tech companies and business leaders are investing in this area to find new ways to solve the energy problems we face now and in the future.
New waste-to-energy technologies, powerful wind turbines, and energy optimization systems are hastening the switch to sustainable energy. Additionally, portable nuclear plants make nuclear energy safer and more efficient, and plug-and-play solar kits make solar power more accessible.
Enterprise software and SaaS
Even if overall U.S. venture financing has somewhat recovered, software as a service, a longtime favorite industry among startup investors, has witnessed a cooling of drive in recent quarters.
However, according to Crunchbase statistics, seed-through growth-stage investment has garnered $4.7 billion for SaaS and corporate software startups until now.
According to UserGuiding reports, 56% of B2B organizations integrate digital software into their strategies, especially digital marketing. Startups should consider tapping into business-to-business (B2B) software to grow.
Popular types of funding for startups in the US
Startup funding in the US falls broadly into equity and non-equity financing. Both types offer unique advantages and suit different stages of a startup’s growth. Here’s a detailed look at the popular funding options:
Equity Financing
This type of financing happens when founders sell ownership stakes in the startup to investors in exchange for capital. This route is popular, especially for high-growth tech startups, as it provides substantial startup funding in the US to drive innovation and market penetration.
- Seed Funding – Seed funding is a startup’s initial capital for early-stage product development and market research. In the US, this type of startup funding typically ranges from $600,000 to $2.9 million and is provided by friends, family, angel investors, and accelerators. Seed funding is crucial for startups to build their first product, conduct market testing, and attract further investment.
- Series A Funding – Series A funding helps startups optimize their products, initiate marketing efforts, and hire early-stage employees. Typical amounts raised range from $2 million to $15 million and are primarily provided by venture capital firms. Series A rounds are critical for startups transitioning from the prototype phase to a scalable business.
- Series B/C/D/E Funding – As startups grow, they often require larger investments to grow operations, enter new markets, and pursue acquisitions. Series B, C, D, and E funding rounds involve larger amounts, typically $10 million or more, provided by VC firms and private equity. These rounds fuel significant business growth and expansion.
Non-Equity Financing
Using non-equity financing, businesses can fund their future projects without giving up a stake. While still having access to the capital they require for expansion, they will retain full control over their course of action and goals.
- Bootstrapping/Self-Funding – Bootstrapping involves using personal savings and revenue for startup funding in the US. This method allows founders to retain full ownership and control over their business. While it can be challenging, bootstrapping enables startups to operate without external pressure from investors.
- Small Business Loans – Small business loans, often backed by the Small Business Administration (SBA), range from $500 to $5 million. These loans are viable for startups looking to finance equipment, inventory, or working capital without giving up equity. They come with competitive terms and can be a lifeline for small businesses seeking growth.
- Crowdfunding – When businesses get startup funding in the US through smaller amounts of money from many people, typically via online platforms through rewards-based, equity-based, debt-based, and donation-based fundraising, it’s called crowdfunding. Platforms like Kickstarter and Indiegogo have enabled startups to validate their ideas and raise funds from investors.
- Business Grants – Business grants offer non-dilutive funding, often for specific projects or research, and are provided by government agencies, foundations, and corporations. Unlike loans, startup owners need not repay their grants. So, they are an attractive option for startups focused on innovation and social impact. The U.S. Small Business Administration offers various grants to support small businesses.
- Business Accelerators/Incubators – Business accelerators and incubators provide seed funds, guidance, and resources in return for an equity stake. These programs accelerate the growth of early-stage startups by offering intensive support and networking opportunities. Y Combinator and Techstars are among the most well-known accelerators, supporting startups like Airbnb and Dropbox.
- Strategic Partnerships – Strategic partnerships involve funding from larger companies in exchange for access to technology or markets. These partnerships can give startups the capital and resources needed to scale while leveraging the established company’s market presence. Strategic partnerships help startups to gain market traction and credibility.
List of top-funded startups in the US
| S. No. | Organization Name | Founding Year | Total Funding Amount (in USD) |
|---|---|---|---|
| 1 | Vantage Data Centers | 2010 | $24.7B |
| 2 | WeWork | 2010 | $22.2B |
| 3 | JUUL | 2015 | $16.4B |
| 4 | Cruise | 2013 | $16.0B |
| 5 | Venture Global LNG | 2013 | $15.9B |
| 6 | AbbVie | 2013 | $15.0B |
| 7 | VICI Properties | 2011 | $12.5B |
| 8 | CoreWeave | 2017 | $12.1B |
| 9 | OpenAI | 2015 | $11.3B |
| 10 | Pattern Energy Group | 2012 | $11.2B |
| 11 | Anthropic | 2021 | $9.7B |
| 12 | Royal Caribbean Group | 2019 | $9.5B |
| 13 | Stripe | 2010 | $9.4B |
| 14 | Lineage Logistics | 2012 | $9.4B |
| 15 | BlueOval SK | 2022 | $9.2B |
| 16 | Intersect Power | 2016 | $8.1B |
| 17 | 1st Deposit & Commerce Bank | 2021 | $7.4B |
| 18 | EP Energy Corporation | 2013 | $7.2B |
| 19 | BeiGene | 2010 | $6.8B |
| 20 | xAI | 2023 | $6.4B |
| 21 | Robinhood | 2013 | $6.2B |
| 22 | Generate Capital | 2014 | $5.9B |
| 23 | Air Lease Corporation | 2010 | $5.8B |
| 24 | WebGo | 2019 | $5.7B |
| 25 | Snap | 2011 | $5.6B |
| 26 | Lyft | 2012 | $5.3B |
| 27 | Freepoint Commodities | 2011 | $5.1B |
| 28 | Carvana | 2012 | $5.1B |
| 29 | Ultium Cells | 2020 | $5.0B |
| 30 | SoFi | 2011 | $4.8B |
| 31 | Phoenix Tower International | 2013 | $4.7B |
| 32 | Compass Datacenters | 2011 | $4.2B |
| 33 | Civitas Resources | 2021 | $4.2B |
| 34 | EOSIO | 2017 | $4.2B |
| 35 | Aurora | 2017 | $4.2B |
| 36 | Faraday Future | 2014 | $4.1B |
| 37 | Magic Leap | 2010 | $4.1B |
| 38 | Vistra Corp. | 2016 | $4.0B |
| 39 | Databricks | 2013 | $4.0B |
| 40 | Moderna | 2010 | $3.9B |
| 41 | BridgeBio | 2015 | $3.8B |
| 42 | Redwood Materials | 2017 | $3.8B |
| 43 | DataBank | 2013 | $3.7B |
| 44 | Griffin Global Asset Management | 2018 | $3.7B |
| 45 | Anduril Industries | 2017 | $3.7B |
| 46 | MPLX LP | 2012 | $3.7B |
| 47 | Kenvue | 2023 | $3.6B |
| 48 | Argo AI | 2016 | $3.6B |
| 49 | EquipmentShare | 2015 | $3.5B |
| 50 | Rexford Industrial Realty | 2013 | $3.5B |
| 51 | Verily | 2015 | $3.5B |
| 52 | Vivint Solar | 2011 | $3.5B |
| 53 | Gopuff | 2013 | $3.4B |
| 54 | Thrasio | 2018 | $3.4B |
| 55 | Nikola Motor Company | 2014 | $3.4B |
| 56 | Sotera Health | 2017 | $3.3B |
| 57 | Sunnova | 2012 | $3.2B |
| 58 | Permian Resources | 2014 | $3.1B |
| 59 | Safehold | 2017 | $3.1B |
| 60 | Cencora | 2023 | $3.0B |
| 61 | Altos Labs | 2021 | $3.0B |
| 62 | SB Energy | 2015 | $3.0B |
| 63 | NextEra Energy Partners | 2014 | $3.0B |
| 64 | Instacart | 2012 | $2.9B |
| 65 | Blue Owl | 2021 | $2.9B |
| 66 | Energent | 2016 | $2.9B |
| 67 | ICEFALL TOPCO | 2023 | $2.9B |
| 68 | STACK Infrastructure | 2019 | $2.8B |
| 69 | Venari Resources | 2012 | $2.8B |
| 70 | Tallgrass Energy | 2012 | $2.7B |
| 71 | SAGE Therapeutics | 2010 | $2.7B |
| 72 | Flexport | 2013 | $2.7B |
| 73 | Invitae | 2010 | $2.7B |
| 74 | Neuehealth | 2015 | $2.7B |
| 75 | Lumentum | 2015 | $2.6B |
| 76 | Resilience | 2020 | $2.5B |
| 77 | Roivant Sciences | 2014 | $2.5B |
| 78 | DoorDash | 2013 | $2.5B |
| 79 | Ruwack Trust | 2013 | $2.4B |
| 80 | Nutex Health | 2011 | $2.4B |
| 81 | Blueprint Medicines | 2011 | $2.4B |
| 82 | Vaxcyte | 2013 | $2.3B |
| 83 | Physicians Realty Trust | 2013 | $2.3B |
| 84 | Octane | 2014 | $2.3B |
| 85 | Chime | 2012 | $2.3B |
| 86 | Devoted Health | 2017 | $2.3B |
| 87 | Disney Streaming | 2015 | $2.3B |
| 88 | Navan | 2015 | $2.2B |
| 89 | Peloton | 2012 | $2.2B |
| 90 | Aptean | 2012 | $2.2B |
| 91 | sPower | 2012 | $2.1B |
| 92 | Nuro | 2016 | $2.1B |
| 93 | Plus Power | 2018 | $2.1B |
| 94 | Fair | 2016 | $2.1B |
| 95 | Marlette Funding | 2013 | $2.1B |
| 96 | Avant | 2012 | $2.1B |
| 97 | Snowflake | 2012 | $2.0B |
| 98 | Pagaya | 2016 | $2.0B |
| 99 | Clearway Energy Group | 2018 | $2.0B |
| 100 | Commonwealth Fusion | 2017 | $2.0B |
| 101 | Grail | 2016 | $2.0B |
| 102 | American Homes 4 Rent | 2011 | $2.0B |
| 103 | Sunoco LP | 2017 | $2.0B |
| 104 | Aureus Capital | 2021 | $2.0B |
| 105 | Rippling | 2016 | $2.0B |
| 106 | Radiology Partners | 2012 | $2.0B |
| 107 | Marathon Digital Holdings | 2013 | $2.0B |
| 108 | Talos Energy | 2012 | $1.9B |
| 109 | LendingPoint | 2014 | $1.9B |
| 110 | New Fortress Energy | 2014 | $1.9B |
| 111 | Metropolis | 2017 | $1.9B |
| 112 | Gaming and Leisure Properties | 2013 | $1.9B |
| 113 | Wiz | 2020 | $1.9B |
| 114 | Edgecore Digital Infrastructure | 2017 | $1.9B |
| 115 | EQRx | 2019 | $1.9B |
| 116 | Lacework | 2015 | $1.9B |
| 117 | Impossible Foods | 2011 | $1.9B |
| 118 | Cerevel Therapeutics | 2018 | $1.9B |
| 119 | Guardant Health | 2012 | $1.9B |
| 120 | Opendoor | 2014 | $1.9B |
| 121 | Agilon Health | 2016 | $1.9B |
| 122 | Coinbase | 2012 | $1.9B |
| 123 | American Bath Group | 2014 | $1.8B |
| 124 | Lendbuzz | 2015 | $1.8B |
| 125 | Fisker | 2016 | $1.8B |
| 126 | Ramp | 2019 | $1.8B |
| 127 | Virgin Voyages | 2014 | $1.8B |
| 128 | Stone Canyon Industries | 2014 | $1.8B |
| 129 | Quibi | 2018 | $1.8B |
| 130 | NextDecade | 2010 | $1.7B |
| 131 | Faire | 2017 | $1.7B |
| 132 | Ascend Elements | 2015 | $1.7B |
| 133 | Sierra Space | 2021 | $1.7B |
| 134 | Skydance Media | 2010 | $1.7B |
| 135 | Pine Gate Renewables | 2014 | $1.7B |
| 136 | Stag Industrial | 2010 | $1.7B |
| 137 | Wonder | 2018 | $1.7B |
| 138 | Katerra | 2015 | $1.6B |
| 139 | Alight Solutions | 2017 | $1.6B |
| 140 | Oscar Health | 2012 | $1.6B |
| 141 | ContextLogic | 2010 | $1.6B |
| 142 | Clover Health | 2014 | $1.6B |
| 143 | Authentic Brands Group | 2010 | $1.6B |
| 144 | GDA | 2013 | $1.6B |
| 145 | Scale AI | 2016 | $1.6B |
| 146 | Silicon Ranch | 2011 | $1.6B |
| 147 | Madrigal Pharmaceuticals | 2016 | $1.6B |
| 148 | Wheels Up | 2013 | $1.6B |
| 149 | Hess Midstream Partners | 2014 | $1.6B |
| 150 | AppLovin | 2012 | $1.6B |
Get Eqvista’s Expert Guidance for Your Next Funding Round!
Despite economic volatility, startup funding in the US continues evolving. The well-funded firms we discussed are prime examples of the innovative technologies and entrepreneurial culture that drive this thriving ecosystem.
At Eqvista, we understand the unique challenges and opportunities that startups face. As a comprehensive cap table management and valuation software, we help streamline your financial operations and ensure compliance with industry standards.
We also support startups with business valuation services, providing accurate and reliable 409A valuations conducted by our NACVA-certified professionals. Join over 15,000 companies that trust Eqvista for their equity management and valuation requirements. Schedule a consultation call with us at no cost, and let’s discuss how we can help meet your startup’s needs!
