Introduction
Crunchbase’s Q1 2025 startup investment report paints a telling picture: late-stage startups are thriving, while early-stage ventures face significant headwinds. This blog post unpacks 11 key charts from the original article to help founders, investors, and analysts understand where capital is flowing—and where it isn’t. From a historic $40B raise by OpenAI to the sharp decline in Asia’s VC landscape, we dive into each insight with a focus on early-stage deal flow.
1. Global Venture Funding Overview
Global venture funding in Q1 2025 reached $113B, up 17% QoQ and 54% YoY—driven almost entirely by late-stage deals.
2. Late-Stage vs Early-Stage Trends
Late-stage surged to $81B (147% YoY increase), while early-stage plummeted to $24B—lowest in 5+ quarters. Seed-stage also declined to $7.2B (-14% YoY).
3. AI Investment Dominates
AI startups received nearly $60B—more than half of all VC funding in Q1 2025. OpenAI alone raised $40B.
4. North America: More Money, Fewer Deals
North America took in $82B (73% of global VC dollars), yet overall deal count declined—indicating a bias toward big-ticket rounds.
5. M&A Activity Rebounds
Q1 2025 saw $71B in startup M&A—best since 2021. Notable deals include Wiz ($32B), Ampere, and Moveworks.
6. AI-Focused M&A Deals Surge
81 AI-related M&A deals were recorded in Q1—up ~33% YoY and QoQ, showing investor appetite for AI exits.
7. Asia’s Decline to 2014 Levels
VC funding in Asia dropped to $13B, down 40% YoY and 25% QoQ. China’s economic challenges played a major role.
8. Europe’s Plateau
Europe’s Q1 2025 VC funding flatlined at $12.6B. Without mega-AI deals, the continent’s share dropped to 11% of global funding.
9. Latin America Early-Stage Bright Spot
LatAm VC totaled $800M, down QoQ but up YoY. Early-stage deals made up over half, especially in fintech.
Also published on Medium.