Silicon Valley continues to reign supreme on the U.S. tech scene with billions of dollars of venture funding landing in the Bay Area in 2023. The largest six rounds totaled nearly $20 billion on their own, going to industries like artificial intelligence and financial services. Read on to learn how these rounds could shape an upcoming year of growth for the San Francisco tech scene.
Largest San Francisco Tech Funding Rounds in 2023
- OpenAI
- Stripe
- Inflection AI
- Rippling
- Databricks
- Sandbox AQ
#4 (tied). $500 million, September 15
A Series I funding round for Databricks will allow the cloud data company to invest in further leveraging generative AI for enterprise data. Its Lakehouse solution aims to streamline developer workflow access to data warehouses. The company is valued at $43 billion following the raise that came from investors including T. Rowe and new investors Capital One Ventures.
#4 (tied). $500 million, March 17
Back in March when Silicon Valley Bank collapsed, Rippling was among many tech companies that searched for interim funding solutions while their own capital was inaccessible. The workforce management company secured $500 million in Series E funding to distribute paychecks to its customers’ employees on time.
#4 (tied). $500 million, February 16
SandboxAQ, a spinoff from Google parent company Alphabet, secured $500 million. The Oakland-based quantum computing company works to fortify enterprise encryption with its software that scans companies’ cryptography to identify which parts need to be replaced. Sandbox will invest in supporting its customer base with its newest capital raise.
#3. $1.3 billion, June 29
Backed by a slew of investors including Microsoft and Nvidia, Inflection AI is valued at $4 billion. The company is building a personal AI companion named Pi that is designed to provide friendly advice based on a person’s interests and needs. Its new funding will help Inflection to build larger and more capable AI models as it continues to grow.
#2. $6.5 billion, March 15
Fintech giant Stripe provides businesses with payment processing and financial solutions. The company is valued at $50 billion following its latest capital raise of $6.5 billion. The money was raised to fund Stripe’s own tax obligations. Investors in the round included GIC, Goldman Sachs, Andreessen Horowitz, General Catalyst and others.
#1. $10.3 billion, January 23 & April 8
AI innovator OpenAI secured the most funding of any U.S. tech company in 2023, with a newly injected $10.3 billion across two rounds. In January, the company announced the continuation of its partnership with Microsoft which came with a $10 billion investment from the software giant. In April, OpenAI secured an additional $300 million tender offer from an array of investors such as Sequoia, a16z, Thrive and K2 Global.
