The first look analysis of global venture capital deals in 2025 showed that $512 billion in deal value was a significant increase over the past two years, according to Pitchbook and the National Venture Capital Association.
In fact, 2025’s total deal value nearly equaled the numbers in 2022, and 2025 was the second-highest year on record. To no suprirse, AI accounted for more than 52.7% of total deal value during the year, and 31.4% of completed deals.
The bad news? U.S. VC fundraising fell to its lowest total since 2019, with just $66.1 billion in new commitments closed during the year. At 537 funds, 2025 also saw the lowest annual total of new funds in the past decade. Those figures represent a significant decline
from the records of $222.9 billion in commitments and 1,777 new funds in 2022.
The $549.2 billion in global VC exit value was an increase of $212 billion, a positive development for VC as the market has endured several years of low liquidity. Public listings accounted for roughly 10% of exits, and more than 50% of exit value. Several
high-profile listings boosted total exit value, though the completed listing figure of
344 was lower than 2024.
Globally, VC fundraising remains challenged because of the poor exit performance
of the past few years. Just $118.6 billion in new commitments were closed, nearly
$100 billion lower than 2024. The number of new funds closed in 2025 was also the
lowest in the past decade. This will have an impact on markets moving forward.
Those with dry powder will be able to sustain deal activity, while those that have not
been able to generate a new supply of capital will have difficulties in dealmaking.
Asia VC First Look Analysis
Asia dealmaking ended 2025 on a firmer footing, with Q4 deal value reaching $20.3
during each of the final two quarters, the two highest quarters of the year. Full-year
2025 deal value hit $76.3 billion, the lowest since 2020. Nearly 40% of capital was
deployed in Q4, signaling a year-end acceleration after several years of decline. Deal
count fell over 10% year over year to 11,389, with a sharper drop in Q4, pointing to
greater selectivity and capital concentration rather than a broad-based recovery.
AI-related investments accounted for nearly 20% of VC deal count and 17% of deal
value in 2025, maintaining momentum despite a broader venture slowdown.
However, AI’s share of Asian venture activity remained below U.S. and European levels, reflecting a more measured deployment pace. Capital skewed toward later-stage rounds, with median AI Series C deal sizes reaching $34.6 million, around 70% higher than non-AI peers, highlighting rising capital intensity at the scaling stage.
Exit activity improved in 2025, increasing over 50% from prior year figures to reach $150.2 billion but still remaining well below peak-cycle levels. Liquidity conditions improved unevenly, with IPO markets still selective and M&A continuing to dominate, driven largely by strategic buyers amid limited sponsor-led exits.
Greater China exit activity remained subdued, reflecting an ongoing structural realignment towards domestic capital and limited nondomestic participation. On the other hand, India and Japan were relative bright spots. India benefited from a more functional domestic IPO market and local institutional liquidity, while Japan’s corporate governance reforms and divestitures supported elevated M&A.
Fundraising fell to $33.2 billion, the lowest total in the past decade. This total was concentrated across just 394 funds, a sharp decline from the 829 funds that raised
capital in 2024, underscoring a much more selective fundraising environment in
which capital was concentrated among fewer managers.
Fundraising conditions remained uneven across the region, with domestic institutional capital playing a larger role in Japan, India, and Australia. Meanwhile, cross-border fundraising—particularly for China-focused strategies—remained constrained amid policy divergence and limited exit visibility. Incremental improvements in liquidity were insufficient to materially shorten fundraising timelines, keeping LPs selective heading into 2026.
Pitchbook-NVCA Venture Monitor US First Look Analysis
2025 ended with a strong rebound, with Q4 recording the highest number of completed deals since Q1 2022. With two quarters exceeding $91 billion in deal value, 2025 finished with the second-highest annual deal value ever, just $18.8 billion behind 2021.
The overall increase in deal count is a positive sign for the market, though it diverges from expectations based on low fundraising by GPs, and the low liquidity figures of the past few years. More than $5 billion was invested into pre-seed and seed stage deals each of the past three quarters, a strong signal that early stage investors are ready and willing to put money to work again. And at $25.7 billion, Q4 early-stage deal value reached its highest point since Q4 2021.
With an estimated 16,707 deals completed in the US, the 2025 deal count jumped 9.6% year over year, with a large portion of that increase driven by AI investment. Overall, AI companies took in 65.4% of the total deal value for the year and 39.4% of completed deals, setting new record highs for AI investment in each category. Since the launch of ChatGPT in late 2022, AI investment has grown from $73.0 billion that year to $222.1 in 2025, with deal counts increasing 24% over that time period.
U.S. VC exit activity showed a significant increase in 2025, with an estimated 1,636 exits being completed during the year, a 28.5% increase over 2024. Total exit value also saw a big jump, with $297.8 billion representing a 92.7% increase over the prior year. However, that figure represents just 34.5% of the annual record from 2021, leaving a lot for investors to desire.
Though high-profile IPOs changed the liquidity narrative for a time, total public listings were flat from 2024 to 2025, with just 67 being completed, including IPOs and reverse mergers. Public listings remained second in terms of liquidity value driven, with M&A nearly reaching its 2021 high of $152.1 billion in value, with 2025 M&A exit value reaching $140.7 billion. The $20 billion licensing deal of Groq in late December boosted M&A value, even though the deal was not a standard acquisition.
LPs remain wary of VC’s lengthening liquidity cycles, as a high number of companies remain private well past traditional timelines. The relative increase in liquidity should help 2026 fundraising, though it is unlikely to be a major surge in new commitments.