Foley & Lardner July 2024 Newsletter

Friends,

In?last month’s newsletter, we reviewed a few sectors where investment has been trending and explored the prognosis for a venture fundraising recovery.

This month, we look at the status and trends of the venture capital markets in the District of Columbia and delve into the current surge of AI visual media.

As private investment markets have grown, established venture capital ecosystems have expanded, and new centers have emerged on a global scale. While the previous decade showed significant growth, the VC industry has changed in the last two years, resulting in a decrease in the amount of funding available.

As securing capital becomes increasingly challenging, limited partners (LPs), general partners (GPs), and founders are critically evaluating where to invest their resources for long-term success. Macroeconomic factors are shaping these decisions, and various locations offer promising investment opportunities.

Researchers evaluated and assigned each primary market a development score and a growth score based on size and maturity. Out of the top venture capital markets, Washington, D.C. ranked No. 12 globally and No. 5 in the United States.

Outside Washington, D.C., PitchBook has reported that startups are raising unprecedented amounts of money to introduce AI-generated visuals to corporate customers. This particular group of generative AI companies saw a notable 90% increase in venture capital funding during the first quarter of this year, bringing in an impressive $402.7 million in investments, a significant jump from the previous quarter's $212.7 million. According to PitchBook, this represents the highest quarterly total in recent years.

AI technologies are revolutionizing the production and improvement of visual media. With AI visual media, individuals can generate, improve, examine, and interpret visual elements such as pictures, videos, and graphics.

Artificial intelligence has a diverse range of applications, including image and video recognition, which detects particular elements present in images and videos (like facial recognition). This technology can also produce lifelike images and videos from scratch and enhance pre-existing visual content by improving resolution, reducing noise, or correcting colors. Another use of AI is to analyze visual content, extracting significant details, themes, or patterns.

According to PitchBook, visual media startups are solving specific business needs. These startups have significant growth potential with rapidly growing demand and diverse applications. They empower companies across various sectors to enhance customer experiences, boost efficiency, and gain competitive advantages.

As always, do not hesitate to contact us if we can help you brainstorm a legal or business challenge you are facing or connect you to a potential investor, professional, or entrepreneur.

Natasha Allen Lisa Conmy David Kantaros Jeff Bowman Von Bryant Steven Cade Eric Chow Brandee Diamond Louis Lehot Maureen Easton Julie-Anne Lutfi Nicholas O'Keefe Taylor Pancake Kevin Shuler Glenn Singleton Lyman Thai André Thiollier Brian Wheeler Melissa Conroy Blake Tengberg Alan Pate Alidad Vakili