State of the
Venture Capital
Industry

Enthusiasm around models, infrastructure, and applied use cases translated into revenue growth, mega-rounds, and concentrated deployment. Total venture funding neared peak levels, but across far fewer deals.

Trillions in capital expenditures flowed into compute, power and data center infrastructure. Investors responded with a deliberate flight to quality, committing more capital to fewer companies and larger checks to market leaders. It was a barbell market, evidenced by strength at the top, activity at the earliest stages, and a quieter middle.

2025 also marked a meaningful step toward normalization. The IPO market reopened selectively, and exit value showed its first sustained improvement in three years.

While liquidity remained uneven, conditions clearly moved in the right direction: NAVs stabilized, exit timelines became more visible, and founders operated from a position of greater control, thoughtfully extending runway while continuing to build.

Importantly, venture capital did not sit on the sidelines. Managers deployed with renewed confidence and adjusted pacing, actively supporting their strongest companies.

Entering 2026, the venture market is more focused, more selective, and increasingly well-positioned to translate improving momentum into liquidity.