Gigantic investments of $500 million dollars or more into Artificial Intelligence companies led a 38 percent increase in year-over-year third quarter global venture capital funding. Year-over-year third quarter increases in other early-stage investment levels were more modest, however, according to Crunchbase.com.
Venture capital funding hit $97 billion in Q3 2025, up from 2024’s Q3 total of $70 billion.
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This is the fourth quarter in a row that global venture capital investment has surpassed $90 billion, as well as the fourth quarter in a row that venture funding has increased year-over-year, according to Crunchbase.
About $45 billion, or some 46 percent of all Q3 global venture capital funding, was invested in AI. And of that Q3 venture funding total, 29% went into Anthropic, a four-year-old San Francisco-based AI company that develops large language models.
The hardware sector was the second largest recipient of Q3 venture capital funding, with $16.2 billion, followed by the healthcare and biotech sector, which raised $15.8 billion, Crunchbase reported.
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Seed funding in Q3 reached $9 billion spread out among more than 3,500 startups, up from $8.5 billion in Q3 2024. That’s almost a 5.9 percent increase.
The most recent Q3 was also notable because it was the second consecutive quarter that the number of initial public offerings increased year-over-year.
There were 16 venture-backed companies whose Q3 IPOs exceeded $1 billion, and that were collectively valued more than $90 billion at their IPO prices, Crunchbase reported. In Q2, there were 18 companies in Q2 that together were valued at around $60 billion.
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