International enterprise capital (VC) funding got here in at $109 billion within the second quarter of 2025, dropping 17% quarter over quarter. However take out OpenAI’s large deal within the first quarter, and funding held agency.
The US captured 64% of world funding, as its sturdy VC ecosystem withstood broader volatility. Utilized AI was the standout with a number of main bets.
In distinction, Europe’s VC exercise cooled. Ongoing macroeconomic uncertainty, excessive rates of interest, and sluggish IPO markets weighed on sentiment. China’s funding was additionally subdued as a consequence of capital pressures. India, nevertheless, emerged as a shiny spot. Buyers confirmed sturdy curiosity in fintech and mobility, reflecting renewed confidence in scalable tech.
Common seed-stage deal sizes elevated, powered by outliers equivalent to Pondering Machines Lab’s $2 billion funding spherical. Whereas late-stage deal sizes dipped on the floor, this largely displays a normalization following OpenAI’s outlier $40 billion funding spherical final quarter.
Company- and company enterprise capital (CVC)-backed exercise was largely flat. In keeping with current years, corporates and CVCs participated in round 36% of complete VC deal worth, reflecting a gradual urge for food for generative AI, onerous tech, and, more and more, capital-intensive performs.
Generative AI funding continues to develop quickly, with funding within the first half of 2025 already surpassing the 2024 complete. Software program and AI firms now account for round 45% of VC funding. Whereas basis and huge language fashions nonetheless draw the majority of funding, improvement instruments noticed the very best quarterly funding progress, signaling a gradual shift.
Bain’s Quarterly Global Venture Capital Outlook
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