In 2025, North American startup funding experienced significant growth, with $280 billion invested in U.S. and Canadian companies, marking a 46% increase from 2024. The year ended strongly, with $67 billion invested in the fourth quarter alone. Despite the rise in funding, the number of deals fell by about 16% year-over-year, indicating a concentration of capital in larger rounds.
Artificial intelligence was the primary driver of this boom, attracting approximately $168 billion, or 60% of the total funding. Notable deals in Q4 included a $2.3 billion Series D for Anysphere and a $2 billion Series B for Reflection AI. The largest AI investments of the year were OpenAI’s $40 billion financing and Anthropic’s $13 billion Series F.
Late-stage funding also saw robust activity, with $191 billion invested throughout the year. Early-stage investments reached nearly $69 billion, with significant deals like Saviynt’s $700 million Series B. Seed funding, however, saw a slight decline, totaling $20.4 billion.
The year was also active for exits, with major IPOs and M&A deals. Noteworthy transactions included Nvidia’s acquisition of Groq’s assets for $20 billion and Google’s planned $32 billion purchase of Wiz.
Looking ahead, there are no signs of a slowdown in startup funding, particularly in the AI sector, as investors continue to support promising companies at high valuations.
