The venture capital (VC) funding landscape in the US has demonstrated remarkable performance in early 2025. While the total number of VC deals has experienced a slight decline of around 5% year-on-year (YoY) during January-May 2025, deals value has surged significantly by more than 90% to $101 billion, underscoring a robust appetite for investment in innovative startups, according to GlobalData, a leading data and analytics company.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “It is noteworthy that it took 10 months to hit $100 billion during 2024. Despite a marginal decrease in deal volume, the overall value of these transactions skyrocketed with a staggering growth rate that highlights investor confidence in the US market. This trend indicates that while the number of deals may be stabilizing, investors are willing to commit larger sums to fewer, but more promising, ventures. This trend not only showcases the maturity of the market but also highlights the increasing confidence investors have in the innovation and scalability of US startups.”
In contrast to the US, other major markets such as China and the UK have faced notable challenges. Both the countries have seen a significant decline in VC deal volume as well as value. The data also indicates that the overall global VC funding landscape has contracted while the US has managed to capture a larger slice of the pie, further solidifying its dominance.
An analysis of GlobalData’s Deals Database revealed that the US continues to remain the top market for VC funding activity in the world in terms of both deal volume and value. It accounted for around 30% of the total number of VC deals announced globally during January-May 2025.
As the US venture capital ecosystem is evolving with a clear shift towards larger investments in fewer deals, its share of the global VC deal value has also expanded significantly from around 50% during January-May 2024 to around 70% during January-May 2025.
Bose concludes: “While the US VC funding landscape has faced some fluctuations in deal volume, the substantial growth in deal value reflects a robust and evolving market. As investors continue to focus on quality over quantity, the US is poised to maintain its leadership position in the global venture capital arena.”
Note: Historic data may change in case some deals get added to previous months because of a delay in disclosure of information in the public domain.
