In 2025, funding for startups across the U.S. and Canada reached a robust $280 billion, marking a significant 46% increase over the previous year. This growth was largely driven by investments in AI-related companies, which attracted around $168 billion, or 60% of the total funding, including major rounds for firms such as OpenAI and Anthropic. Despite a slight drop in the number of deals, the overall capital inflow concentrated on larger funding rounds, especially in late-stage and early-stage companies, which saw sizeable investments of $191 billion and $69 billion respectively. Seed funding saw a modest decline compared to 2024 but remained substantial, highlighted by big-ticket seed deals. The year also witnessed notable IPOs and M&A activities, including Google’s $32 billion acquisition of Wiz and Nvidia’s $20 billion purchase of AI chip developer Groq, signaling a vibrant exit market. Indicators suggest that the venture capital momentum, especially surrounding AI startups, is expected to continue strong into 2026, despite concerns about an AI bubble.
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