The AI boom in San Francisco is a breath of fresh air for the city and has venture capitalists enamored. The first half of this year has already seen total funding surpass $1B for AI companies, which accounts for 16.4% of the market’s total funding. This represents a significant increase from 2022’s combined market funding total of 9.5%.
While San Francisco AI funding in Q2 2023 only represented 10.4% of the market’s total funding, the number of funding rounds jumped dramatically. This was in large part due to 84.3% of the quarter’s funding coming from early-stage rounds. Overall, there were 76 total rounds of funding for AI companies, representing 25.6% of the quarter’s deal count.
With a large majority of AI’s VC funding in San Francisco being concentrated in the early-stages, there is a large potential for companies to expand their real estate footprint as they continue to grow. This is currently represented by over half a million square feet of active requirements in the market.
Senior Insight Analyst