The global venture capital (VC) market closed 2025 on a strong note: total investment in the fourth quarter reached $138.1 billion — the highest level in the past 14 quarters — while full-year funding exceeded $500 billion. These figures are presented in KPMG’s quarterly Venture Pulse Q4 2025 report.
Key Global VC Trends
Investment Volumes Increased, Deal Count Declined
In Q4 2025, global VC investment totaled $138.1 billion across 7,981 deals, up from $125.6 billion across 9,434 deals in Q3 2025. This dynamic reflects a concentration of capital in larger rounds with bigger ticket sizes, rather than a high volume of smaller transactions.
2025 Among the Strongest Years on Record
With total annual venture investment surpassing $500 billion, 2025 ranks among the top three years globally in terms of total VC funding volume.
Corporate Venture Capital (CVC) Activity Intensified
Corporate VC investment rose to $77.0 billion, reflecting increased participation by large corporations in funding innovative startups and technology platforms.
Artificial Intelligence as the Primary Investment Driver
Artificial intelligence remained the dominant sector for VC investment in 2025. In Q4 alone, eight U.S.-based AI companies raised funding rounds exceeding $1 billion each. Among the largest were Anthropic ($15 billion), Project Prometheus ($6.2 billion), Anysphere ($2.3 billion), and Reflection AI ($2 billion).
Investment in AI-driven startups reflects growing global demand for technologies that reshape business models and entire industries.
AI-related funding also expanded across other regions: Australia (Firmus Technologies — $541 million), China (Didi Autonomous Driving — $280 million), Japan (Mujin — $235 million), and Europe, where Brevo ($578 million), Black Forest Labs ($300 million), and Synthesia ($200 million) secured significant rounds.
Regional Dynamics
The United States continued to lead in investment volumes. In the United States, VC investment in Q4 2025 reached $91.15 billion, largely driven by major AI rounds.
Europe maintained stable funding levels at approximately $21.1 billion in the fourth quarter, with the United Kingdom, Germany, France, and other countries demonstrating continued activity in large-scale financings.
Asia showed improvement to $21.4 billion in Q4 2025 but remained below historical norms, reflecting the impact of geopolitical uncertainty and trade tensions.
Exits and Outlook
The report also notes strengthening exit activity (IPOs and M&A), with exit value rising to $178 billion in Q4, contributing to improved liquidity across the VC ecosystem.
Looking ahead to 2026, analysts expect continued capital inflows into technology sectors, particularly AI, defense technology, quantum computing, and applied innovation, alongside a gradual reopening of the IPO window for high-growth companies.
Conclusion
Despite broader market uncertainty, 2025 concluded with high levels of venture investment, large-scale technology rounds, and a growing role for corporate investors. Investors are becoming more selective, while maintaining a strong focus on scalable, profitable, and technologically advanced ventures.
