Global venture funding hit $113 billion in Q1—the highest since mid-2022—but the surge was mostly driven by mega-rounds, especially OpenAI’s massive $40 billion raise. Without that deal, global investment would've remained flat compared to previous quarters.
Late-stage startups grabbed the lion's share ($81B), continuing to overshadow early-stage ($24B) and seed-stage ($7.2B) funding, both of which saw declines.
Notable trends this quarter include:
AI Dominance: Over half of all global venture dollars ($60B) went to AI startups, driven largely by OpenAI’s funding.
Strong North America, Weak Asia: North American startups captured nearly 73% of global funding, while Asia saw investment dip to its lowest levels since 2014, dragged down by economic challenges in China.
Europe Flatlines: Funding in Europe remained steady but flat at around $12.6B, lacking the huge AI-driven rounds boosting North America.
Startup M&A Heats Up: Q1 was strong for exits ($71B globally), highlighted by Google's planned $32B acquisition of cybersecurity unicorn Wiz, marking one of the largest startup deals ever.
LatAm Fintech Thrives: Despite lower overall funding ($800M total), Latin America saw strong early-stage activity, notably driven by fintech startups.
The takeaway: While overall funding looks healthy, early-stage startups face tougher funding conditions. Expect continued volatility in 2025 as large checks flow mainly to big-name players.
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