Global VC Funding Rises 11% Year-Over-Year in Q2 2025, Driven by AI Investment

Global venture capital funding demonstrated an 11% year-over-year increase in the second quarter of 2025, reaching $91 billion, according to recent data from Crunchbase. This rise, compared to $82 billion in Q2 2024, signals a robust period for the venture market, primarily fueled by significant investments in artificial intelligence (AI) technologies. Despite this annual growth, funding saw a 20% quarter-over-quarter drop from the $114 billion recorded in Q1 2025.

The surge in Q2 2025 funding was heavily concentrated in the AI sector, which attracted approximately $40 billion, accounting for about 45% of global venture capital. This included a substantial $14.3 billion funding round for Scale AI, highlighting the trend of capital flowing into large-scale AI research and infrastructure providers. The first half of 2025 marked the strongest period for venture capital since mid-2022, with a total of $205 billion raised.

The United States continued to dominate the venture capital landscape, securing $60 billion in Q2 2025, representing two-thirds of the total global funding. This strong performance underscores the U.S.'s enduring position as a leading hub for startup investment. In contrast to some initial reports, China experienced a significant decline, posting the region's largest funding drop with just $5.1 billion reported.

While global funding increased year-over-year, the market showed a greater concentration of capital into larger funding rounds. Late-stage funding saw substantial gains, reaching $55 billion, a 53% increase year-over-year. Early-stage funding remained flat, while seed funding reached $10.3 billion, boosted by outlier rounds such as Thinking Machines Lab's $2 billion seed investment.

The robust activity in Q2 2025 also extended to mergers and acquisitions (M&A), which recorded $50 billion in exit value, making it the second-strongest quarter since 2021. OpenAI emerged as a key acquirer, purchasing four companies, including Jony Ive’s Io for $6 billion. This M&A momentum, coupled with the concentrated AI investments, suggests a dynamic and evolving venture capital environment.