Preqin data shows the US accounted for 83% of VC funding in G7 economies over the past decade; OECD data shows AI VC funding in China is second only to the US
www.ft.com/content/1201... [image] @cfmeyskens : US labour productivity has grown by 30% since the 2008-09 financial crisis, more than three times the pace in the Eurozone and the UK. That productivity gap, visible for a decade, is reshaping the hierarchy of the global economy. www.ft.com/content/1201... X: Alice Evans / @_alice_evans : “If we exclude the tech sector, EU productivity growth over the past 20 years would be broadly at par with the US” - Draghi Fabulous article 🧵 [image] Forums: r/Economics : Why America's economy is soaring ahead of its rivals | Financial Times r/neoliberal : Why America's Economy is soaring ahead of it's rivals | Financial Times
Context & Ripple Effects
The funding split sits alongside evidence that China had already built substantial AI inputs: it led the US in reported 2021 AI research output and quality, and later research found China produced nearly half of top AI researchers. That makes its second-place AI-VC position a meaningful counterpoint to the US’s broader G7 venture-capital dominance.
First-order effects
- US startups and venture funds retain a markedly deeper capital base across the G7, reinforcing the US as the principal location for companies that need repeated rounds of private financing.
- China stands apart from other G7-adjacent competitors in AI financing, pairing its capital position with the research and talent base described in earlier AI research rankings and AI-talent estimates.
Second-order effects
- European and UK founders face a relative financing disadvantage versus US peers, particularly where AI businesses require sustained capital before revenues scale.
- The US-China contest in AI is less cleanly explained by overall venture depth alone: China’s AI funding, research, and talent strengths can support a separate ecosystem even while US capital remains dominant.
Third-order effects
- If the distribution persists, frontier technology company formation is likely to concentrate around a small number of capital-rich ecosystems, raising the cost for other economies to retain high-growth startups.
- The pattern suggests AI competition will be shaped by the interaction of private capital with domestic research and talent pipelines, rather than by venture funding shares in isolation.
The trend: AI is intensifying a broader concentration of innovation finance in the US, while China remains the only comparably scaled challenger across several AI inputs.