US startup funding jumped by 75.6 percent in the first six months of 2025. Total investment reached $162.8 billion, marking the second-highest half-year total in history. Experts say the surge stems mainly from growing interest in AI.
Read Also:Elon Musk’s xAI Explores Saudi Data Center Deal
AI-focused investments made up about 64 percent of the deal value. This includes large rounds like OpenAI’s $40 billion and Meta’s $14.3 billion stake in Scale AI. Other big deals involved AI firms like Safe Superintelligence, Thinking Machine Labs, Anduril and Grammarly.
Despite this boom in startup funding, venture capital firms fared poorly. VC fundraising dropped 33.7 percent, with just $26.6 billion raised. Funding rounds took longer to close—averaging 15.3 months, the longest in over ten years.
Read Also:Dutch Chipmaker Wins €62 Million EU Grant for AI Hardware
Still, exits lifted confidence. IPOs and M&A deals rose by roughly 40 percent in the second quarter. These included late-stage moves in AI, fintech, defense tech, and crypto. Companies like Hinge Health and CoreWeave helped drive renewed optimism.
While startup funding thrived, investors remained cautious. VC firms face challenges as market conditions evolve and competition increases. Still, the rapid flow of capital into AI startups suggests strong faith in the sector’s future.
Read Also:Dutch Chipmaker Wins €62 Million EU Grant for AI Hardware
