US startup funding jumped 75.6% in the first half of 2025, reaching $162.8 billion, according to new data. This marks the strongest performance since 2021 and puts the year on track to become the second-best ever for startups, fueled by a surge in artificial intelligence investments.
The sharp increase in funding was largely driven by major tech firms betting big on AI, a trend that began with the launch of ChatGPT in late 2022. In the last three months alone, $69.9 billion was invested into startups across the country.
Notable deals included OpenAI’s $40 billion raise and a $14.3 billion investment by a leading tech company into Scale AI. Other major AI-focused investments topping $1 billion in the second quarter went to Safe Superintelligence, Thinking Machine Labs, Anduril, and Grammarly.
AI now accounts for 64.1% of total deal value and 35.6% of deal count so far in 2025. “I think it’s downstream of the fact that OpenAI and Anthropic continue to grow at unbelievable rates,” said Davis Treybig, a partner at a venture capital firm. “If there’s even a chance you could see that sort of progress in other domains… then there’s a lot of people who are going to want to invest a lot of money.”
However, venture capital fundraising faced significant challenges. Just $26.6 billion was raised across 238 funds in the first half of the year, down 33.7% from the same period in 2024. It now takes a median of 15.3 months to close a fund, the longest in over a decade.
This disconnect highlights concerns among investors about returns and liquidity. Still, there is growing optimism thanks to a rebound in exit activity, including mergers, acquisitions, and initial public offerings. Exit activity rose 40% in the second quarter compared to last year, driven by easing antitrust policies and improving IPO conditions.
Sectors aligned with national priorities such as AI, defense tech, fintech, and crypto drew the most IPO interest in Q2. “The good news is we’re starting to see the tide turn,” said Lucas Swisher, co-head of growth investing at a tech investment firm. “IPOs like portfolio companies Hinge Health and Coreweave have been well received by the market, and there are a dozen companies filed now.”
Also read:Â Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream formerly known as CIO News LinkedIn Account | The Mainstream formerly known as CIO News Facebook | The Mainstream formerly known as CIO News Youtube | The Mainstream formerly known as CIO News Twitter |The Mainstream formerly known as CIO News Whatsapp Channel | The Mainstream formerly known as CIO News Instagram
About us:
The Mainstream formerly known as CIO News is a premier platform dedicated to delivering latest news, updates, and insights from the tech industry. With its strong foundation of intellectual property and thought leadership, the platform is well-positioned to stay ahead of the curve and lead conversations about how technology shapes our world. From its early days as CIO News to its rebranding as The Mainstream on November 28, 2024, it has been expanding its global reach, targeting key markets in the Middle East & Africa, ASEAN, the USA, and the UK. The Mainstream is a vision to put technology at the center of every conversation, inspiring professionals and organizations to embrace the future of tech.
