Social media startup funding has surpassed last year’s total, marking the start of a reversal after several years of decline. By 2025, social startups had fallen to 97 deals worth $330 million combined.
Social media startup funding rebounds after decline
The broader venture market helps explain the squeeze on social: PitchBook estimates total U.S. venture deal flow hit $513 billion in 2025, and much of that capital flowed to AI and subscription software (SaaS). The research firm logged more than 11,800 AI-related investments in 2025, leaving social media a relatively small corner of a very busy market.
New bets are smaller and more specific
The startups now attracting capital are not trying to replace major social platforms but are targeting narrow slices of social life. Fizz, an anonymous social app aimed at Gen Z, has raised a new round to support global expansion. Corner, a social mapping app for saving and sharing local spots, is preparing to raise its first major venture round, a Series A.
PitchBook’s social category excludes some dating and AI companion startups, including Eigen, so official counts likely understate the current wave. “Everyone fled consumer a couple years ago,” Rick Heitzmann, cofounder of FirstMark Capital, said, and the recent deals suggest that fear is starting to lift.
For individual investors, these startups remain private and therefore not tradable in a standard brokerage account. The comeback matters, however, if your portfolio has exposure to tech or if you hold shares in larger companies that might acquire these startups later. The important signal is where venture investors are willing to place early bets: after years of chasing AI, many are again taking chances on social connection. Those are risky bets and many will fail, which is typical for venture capital.
Money has begun moving again in a category that looked dead in 2025. If one of these startups grows large enough to go public or be acquired, the current funding momentum is the moment that set it on that path. With funding trends shifting, the free Always Be Buying eBook outlines how consistent investing can build wealth over time.
