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Alternative Market Briefing

Global VC investment fell from $128.4bn in Q1'25 to $101.05bn in Q2

Friday, July 25, 2025

Laxman Pai, Opalesque Asia:

While global VC investment fell from $128.4 billion in Q1'25 to $101.05 billion in Q2, the decline was largely due to OpenAI's $40 billion megadeal in the previous quarter, said a study.

According to the Q2'25 Venture Pulse Report, excluding that outlier, Q2'25 activity remained relatively strong, reflecting steady investor interest across AI, defencetech, and spacetech sectors. Factoring out this outlier deal suggests a more positive, more resilient, VC market given the market headwinds.

The VC market globally continued to experience significant headwinds in Q2'25. The US's Liberation Day tariff announcements on April 2, 2025, were particularly impactful, deepening concerns about global trade, supply chains, and industries highly exposed to tariff risks.

While VC investors showed increasing caution in the face of these headwinds, they also showed keen persistence and a willingness to invest in companies in critical sectors like AI and in companies less exposed to tariff and trade risks.

AI continued to drive a significant wave of VC investments globally in Q2 '25. The US attracted the largest deals in the space, including a $14.3 billion raise by Scale AI, a $2.5 billion raise by AI-powered defencetech Anduril Industries, $2 billion raise by AI development company Safe Superintelligence, a $2 billion seed round by Thinking Machines Lab, and a $900 million raise by Anysphere - the startup behind the Cursor coding assistant.

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