2025 was a strong year for deployment, but capital allocation was increasingly non-linear. We saw more dollars, fewer deals, and a greater skew toward perceived leaders.

Dealmaking in venture rebounded materially in 2025. With $339.4 billion deployed, it was second only to 2021 in deal value. However, the distribution of that capital tells the more important story. Late-stage venture deal value rose 45% year-over-year, even as late-stage deal count declined by 4%, reflecting a market shaped by a smaller number of very large rounds. The effect was even more pronounced in venture growth, where deal value surged 131% while deal count rose just 16%.

↑ 59.8%

increase in total dollars
invested in 2025

↓ 4%

decrease in total
deals done in 2025

This rebound in investment activity indicates improved confidence and greater willingness to re-engage across stages, but selectivity remained high. The concentration at the top end – especially in AI – defined the year: roughly half of all 2025 deal value went into a tiny fraction of completed mega-deals like OpenAI, Anthropic, and xAI.

U.S. Venture Capital Deal Activity

Source: PitchBook

AI continued to dominate venture, amplifying trends that were already in motion. After 46% of venture dollars went into AI/ML in 2024, the market concentrated further in 2025. AI-related companies represented 65% of deal value in 2025, driven by a wave of large, late-stage financings. This is the clearest signal of the cycle: investors are treating AI as a platform shift, and capital is targeting the category-defining companies expected to have the greatest outcomes.

65%

deal value invested
in AI in 2025