The US dominates global venture capital in 2025
The United States cemented its dominance of global venture capital in 2025. Around $274 billion was invested in US-based companies, representing 64% of global startup funding — up from 56% in 2024 and well above the 47-48% share seen from 2019-2023. North American startup funding surged 46% year-over-year.
The AI boom was the primary driver. California alone attracted 64% of all US venture funding, with San Francisco and Silicon Valley capturing the lion's share through massive rounds for OpenAI, Anthropic, xAI, and dozens of AI infrastructure companies. Through July, California startups attracted over $110 billion.
New York held firm as the second-largest market with $13 billion in H1, driven by AI infrastructure, fintech (Ramp, iCapital), and cybersecurity. Boston, Texas, and Washington state rounded out the top destinations. Capital concentration intensified: in Q4, just 117 deals over $100 million accounted for 75% of all US VC dollars.
Leading US Venture Capital Firms
The US houses the world's most influential VC ecosystem. Tier-one firms include Sequoia Capital, Andreessen Horowitz (a16z), Accel, Benchmark, Lightspeed Venture Partners, Greylock, and Founders Fund. Multi-stage firms like Tiger Global, Coatue, and Insight Partners remain active, particularly for AI-integrated companies.
At seed and early stage, firms like Y Combinator, Bessemer Venture Partners, First Round Capital, and Forerunner Ventures deploy actively. Sequoia launched a new $950 million early-stage initiative including a $750 million Series A fund and a $200 million seed fund.
Corporate VCs from Microsoft, Google, Amazon, Nvidia, and Salesforce are among the most influential AI investors, blending strategic investment with product partnerships and cloud credits. The US exit environment also improved markedly in 2025, with the [IPO market reopening (Circle, Chime) and M&A hitting record levels (Google/Wiz).
US VC Outlook for 2026
The US enters 2026 with venture funding near all-time highs, driven primarily by AI. Key themes include continued AI infrastructure investment (models, chips, data centers), the commercial expansion of agentic AI into enterprise workflows, biotech recovery and M&A acceleration, defense tech growth, and a reopening IPO pipeline that could unlock significant liquidity.
Deal count has continued to decline at smaller sizes, meaning capital is concentrating in fewer, larger companies. For early-stage founders outside of AI, the fundraising environment remains competitive. Strong fundamentals – recurring revenue, retention, and capital efficiency – are essential regardless of sector.
European founders targeting US investors should note that many top-tier US VCs now actively back international companies, particularly in AI, deep tech, and enterprise software.

