Wiz

Q1 2025 VC Markets: AI Dominance, Mega Deals, and Record-Breaking Exits

The venture capital landscape in the first quarter of 2025 was defined by a significant concentration of capital into fewer, high-conviction investments, primarily driven by the artificial intelligence sector.

• Global venture capital funding reached $120.9 billion in Q1 2025, the highest quarterly total since Q2 2022, despite deal volume falling to a five-year low of 5,846 deals.
• Mega-rounds of $100 million or more dominated the market, accounting for 70% of all funding with $84.4 billion deployed across 145 deals.
• AI companies captured 20% of all venture deals in Q1 2025, marking a record high for the sector and signaling its status as the primary focus of startup investment.