Summary:
AI investments drove 75.6% surge in U.S. startup funding, reaching $162.8 billion in H1 2025
OpenAI’s $40 billion round and Meta’s $14.3 billion stake in Scale AI were standout deals
VC fundraising declined 33.7% year-over-year, with only $26.6 billion raised
Exit activity rebounded with 40% increase in Q2, fueled by AI and fintech IPOs
Median time to close new VC funds stretched to 15.3 months, the longest in a decade
AI Drives Unprecedented Startup Funding Growth
U.S. startup funding experienced a remarkable 75.6% surge in the first half of 2025, largely fueled by the AI boom, according to a recent PitchBook report. This growth positions 2025 as potentially the second-best year ever for startup investments, with a total of $162.8 billion raised in just six months.
Key Highlights of the AI Investment Wave
- AI investments accounted for 64.1% of the total deal value.
- Major deals included OpenAI’s $40 billion round and Meta’s $14.3 billion stake in Scale AI.
- Other significant AI investments exceeded $1 billion, targeting companies like Safe Superintelligence, Thinking Machine Labs, Anduril, and Grammarly.
VC Fundraising Faces Headwinds
While startups thrived, venture capital fundraising saw a 33.7% decline year-over-year, with only $26.6 billion raised across 238 funds. The median time to close new funds stretched to 15.3 months, the longest in over a decade.
Optimism for Exit Activity
Exit activity, including IPOs and M&A, rebounded with a 40% increase in Q2 2025. Sectors aligned with AI, national security, and fintech dominated IPO interest, signaling a positive outlook for the remainder of the year.
"The good news is we’re starting to see the tide turn," said Lucas Swisher, co-head of growth investing at Coatue, highlighting successful IPOs like Hinge Health and Coreweave.
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