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Fundraising
Capital concentrates
around conviction
Private funding volume rebounded toward the peak levels of 2021, but the market was more structurally narrow. Capital was concentrated into fewer, higher-quality managers.
Venture fundraising remained muted in 2025, as limited partners continued to recalibrate following the exuberance of the 2020-2021 cycle. According to PitchBook, U.S. firms raised $66.1 billion across 537 funds, the lowest annual total in over a decade. The slowdown reflected stretched liquidity, aging commitments, and more disciplined pacing. LPs prioritized existing relationships, proven underwriters, and managers with clear strategies. New commitments faced higher scrutiny. Fundraising cycles lengthened and fewer funds closed overall. But, just as startup fundraising was a tale of haves and have-nots, VC firm fundraising was heavily bifurcated. Top managers with strong performance, tenured teams, and widely recognized deal flow continued to raise new funds relatively quickly and easily.
U.S. Venture Capital Raised
2025 saw intensified capital concentration. Larger, established firms continued to attract the majority of new commitments, while specialist and seed-focused managers raised selectively from targeted LP bases. PitchBook reports that funds sized over $500 million now represent more than half of all dry powder, despite also representing a small number of recent fund closes. This fundraising concentration is increasingly shaping investment influence.
Share of Venture Raised
by Manager Experience
The implication is straightforward: more dollars are controlled by fewer decision-makers and deployed with greater conviction. These investors are well-positioned to invest in today’s highest-growth opportunities, particularly in capital-intensive segments such as AI infrastructure, enterprise software, and deep tech platforms requiring sustained investment.