The US venture capital (VC) funding landscape remains robust, characterized by a significant increase in total funding value during January-February 2025 compared to the same period in the previous year, even though there was a slight decline in deal volume. The data indicates that while the VC deal volume in the US experienced a year-on-year (YoY) decline of approximately 2%, the total funding value surged by more than 50% to around $24 billion, according to GlobalData, a leading data and analytics company.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “This divergence highlights a shift towards larger investments in high-potential startups, underscoring the evolving nature of the VC ecosystem, where quality is increasingly prioritized over quantity.”
Some of the notable VC funding deals announced in the US during January-February 2025 included $3 billion secured by Infinite Reality, $700 million funding in X-Energy, Saronic Technologies’ $600 million fundraising, $527 million secured by KoBold Metals, and NinjaOne’s $500 million worth of fundraising.
Bose adds: “The high growth in funding value for the US also stands out prominently against the backdrop of a global VC funding landscape that has also seen fluctuations.”
It is noteworthy that other major markets such as China experienced double-digit YoY decline in both VC deal volume and value during the review period. Meanwhile, countries like India and Japan have shown resilience. However, the US remains the clear leader, capturing a substantial share of global VC funding.
An analysis of GlobalData’s Deals Database revealed that the US accounted for around one-third of the total number of VC deals announced globally during January-February 2025 while capturing more than half of global funding value.
Bose concludes: “The US VC market is demonstrating a clear trend towards larger, more strategic investments. This shift is leading to a concentration of capital in fewer but more promising startups. VC firms seem to be increasingly looking for startups with proven business models and scalable solutions, which is driving up the average deal size. As the VC ecosystem evolves, it will be interesting to see how the trend unfolds in the coming months.”
