Increase in global startup financing during Q2 2025, primarily driven by giant AI-related deals bolstering venture capital figures.
In the second quarter of 2025, Artificial Intelligence (AI) startups globally attracted around $50 billion in venture capital funding, marking a significant investment in the rapidly growing sector [4]. North America emerged as the dominant region, with AI startups in the region securing an impressive $34.5 billion, underscoring its leadership in AI investment [1].
The strong investor appetite for AI is evident in the sector's growth. Compared to other sectors, AI is a major driver of venture investment growth. Healthcare AI startups, for instance, raised about $3.4 billion in Q2 2025, capturing 62% of digital health venture funding [3]. Other sectors with substantial AI investment rounds include defense and manufacturing, as demonstrated by Anduril’s $2.5 billion funding round for AI-powered defense manufacturing [2].
The first half of 2025 is on track to be the strongest since early 2022 for global venture funding, with North America accounting for 70% of the total [5]. The market is clearly back in motion, but the weight is being carried by a narrow slice of it, primarily AI startups.
M&A activity also saw a resurgence in the first half of 2025. A total of 918 startup acquisitions were tracked globally, resulting in over $100 billion in total deal value, representing a 155% year-over-year jump [6]. Notable acquisitions include OpenAI's $6.5 billion buyout of Jony Ive's AI hardware venture and ServiceNow's $2.85 billion purchase of Moveworks [7].
In Europe, funding held steady in Q2 2025, though it's down from 2024's peak. Germany overtook the U.K. as the top venture market in Europe in Q2 2025 [8]. M&A remained active in Europe, with $7.2 billion in disclosed exits across 172 deals in Q2 2025 [9].
However, China posted a year-over-year decrease of a third in venture funding, with only $5.1 billion raised in Q2 [10]. In contrast, the U.S. alone pulled in $145 billion across all sectors in the first half of 2025, representing a 43% year-over-year increase [11].
In the competitive landscape of venture funding, AI startups continue to dominate, reflecting broad integration and investor confidence. The second quarter of 2025 saw a record-breaking investment in North America, with AI deal sizes remaining large and prominent across various sectors.
References: [1] Crunchbase News (2025). North America's AI Startup Investment Hits $34.5 Billion in Q2 2025. [2] TechCrunch (2025). Anduril Raises $2.5 Billion for AI-Powered Defense Manufacturing. [3] MobiHealthNews (2025). Healthcare AI Startups Raise $3.4 Billion in Q2 2025, Capturing 62% of Digital Health Venture Funding. [4] CB Insights (2025). Global AI Startup Investment Hits $50 Billion in Q2 2025. [5] PitchBook (2025). North America Accounts for 70% of Global Venture Funding in H1 2025. [6] PitchBook (2025). M&A Roars Back in H1 2025 with 918 Startup Acquisitions and $100 Billion in Total Deal Value. [7] The Verge (2025). OpenAI Acquires Jony Ive's AI Hardware Venture for $6.5 Billion. [8] Sifted (2025). Germany Overtakes the U.K. as Europe's Top Venture Market in Q2 2025. [9] Sifted (2025). M&A Remains Active in Europe with $7.2 Billion in Disclosed Exits in Q2 2025. [10] CB Insights (2025). China's Venture Funding Drops by a Third in Q2 2025. [11] PitchBook (2025). U.S. Venture Funding Hits $145 Billion in H1 2025, a 43% Year-Over-Year Increase.
The strong investor interest in AI is evident as it becomes a major driver of venture investment growth, with AI startups attracting around $50 billion in Q2 2025, leaving other sectors in its wake. In North America, this trend is particularly prevalent, with AI startups garnering an impressive $34.5 billion, representing a significant portion of the region's business and technology landscape.
