At Taranis Capital, our investment thesis focuses on supporting high-potential AI companies as they scale into new markets. We back ventures with strong technical foundations and commercially proven AI solutions, where our capital and sector expertise can significantly accelerate growth. Beyond funding, we provide strategic guidance, regulatory insight, and market access to help AI companies navigate complex ecosystems and unlock global opportunities. By leveraging our connections across technology hubs, enterprises, and government stakeholders, we enable AI innovators to expand faster and build market-leading positions in new geographies.
The global artificial intelligence (AI) industry is a multi-hundred-billion-dollar market, with a total addressable market of roughly $500 billion in 2024. The sector spans tens of thousands of companies worldwide (approximately 25,000+ AI firms), from emerging startups to large platform players. Venture capital primarily targets early-stage and growth-stage AI companies – often firms developing core AI infrastructure, applied AI solutions, or vertical-specific AI products. Major hubs (the US, China, the UK, Israel, and Canada) each host significant clusters of AI firms, but emerging regions such as the Middle East, Southeast Asia, and Latin America are also seeing rapid ecosystem growth.
Thousands of new AI startups form globally each year. Annual formation has been strong through the 2020s, with over 3,000 new AI ventures launched globally in 2023. The pace of new company creation reflects rapid advances in data availability, computing power, and AI research. These startups target areas such as machine learning platforms, large language models, autonomous systems, fraud detection, and AI-driven customer engagement. The steady formation of new AI companies ensures a robust pipeline of ventures seeking VC backing.
Venture capital funding in AI has scaled rapidly over the past several years. Global VC investment in AI was less than $20 billion in 2020, rising sharply to over $40 billion in 2021 as enthusiasm for AI applications surged. Funding continued to climb, reaching over $70 billion in 2023, with 2024 tracking at similarly high levels despite broader market headwinds. Investors have increasingly concentrated capital into fewer, larger rounds – including several $100M+ early-stage financings aimed at scaling AI platforms globally. This environment of large deals and sustained VC interest signals continued momentum for AI innovation worldwide.
