Venture capital exits hit $67.7 billion in value in the U.S. in the second quarter, the largest value since a slowdown began after 2021, according to the first look at the Pitchbook NVCA Venture Monitor.
However, deal counts were flat in Q2 from a year ago and deal value was down 25% from Q1. The lower activity could reflect uncertainty around the economy in the wake of Trump’s tariff trade wars.
Kyle Stanford, director of U.S. venture research at Pitchbook, said in the report that the report estimates an increase in exit counts (the second-highest quarterly figure since 2021), though public listings remain on track for the fewest completed in any year over the past decade.
Pitchbook said the Q2 deal count remains roughly flat compared to Q2, while deal value dropped by 25% from Q1. Although it’s true that Q2 doesn’t include a $40 billion round for OpenAI, it does feature the $14.3 billion investment in ScaleAI, which is the second-largest VC deal ever.
That deal involved a 49% stake purchased by Meta, a move believed by the market to be aimed at subverting FTC scrutiny that could come through a full acquisition. Together, the 10 largest VC deals of the quarter accounted for 39% of the capital raised.
Just $26.6 billion has been raised by new U.S. VC funds during the first half of the year, marking a low total that is on pace to be the lowest annual figure in a decade. Twelve funds have closed on $500 million or more, collectively accounting for 46.6% of the total commitments raised.
The low capital commitment amount has been accompanied by a low number of funds, which totaled just 238 through Q2. LPs continue to remain cautious of committing to new funds as liquidity has remained poor. Without distributions coming back from exits, many are hesitant to become overweight to venture, given the extending horizons for the illiquid market.
Europe VC activity
Navina Rajan, EMEA senior private capital analyst, offered comments the European market.
Rajan said the first half of 2025 for European deal value hit a pace below 2024, as activity in Q2 felt the weight of volatility in wider financial markets. This was felt especially in the pre-seed/seed stage.
By vertical, AI-related investment now comprises a third of European deal value with life sciences and fintech sectors continuing to show resilience.
Exit value in the half paced below last year, as Q2 remained broadly stable QoQ, but a robust 2024 proves a difficult base to grow from. Acquisitions continued to grow share of activity, as listings remain weak, also underperforming compared to the U.S.
Capital raised is on track for a record-low year in Europe. Lagging returns and distributions weigh on capital raised as the fundraising environment comes under pressure. Areas of the market which showed more resilience included German-domiciled vehicles as well as emerging managers, with the latter growing share of fundraising to an all-time high.
APAC VC activity
Melanie Tng, Asia Pacific private capital analyst, offered thoughts on the Asia Pacific VC market.
VC deal activity in APAC remained muted in Q2 2025, extending a multi-year trend of cautious sentiment amid macroeconomic and geopolitical headwinds. Deal counts continued to slide as founders and investors held back, balancing capital efficiency with uncertainty in exit environments and valuations.
Information technology led by APAC deal count once again, driven by persistent momentum in AI and digital infrastructure. Governments across the region continued to accelerate domestic AI capabilities, semiconductor production, and cloud infrastructure, with new initiatives in Japan, South Korea, India, and China underpinning steady deal flow across early and growth stages.
VC-backed exit activity in Asia fell sharply, with just 67 exits recorded in Q2 (as of May), down from 244 in the prior quarter. The steep drop reflects the absence of major IPOs and a tepid M&A landscape, as valuation gaps, soft public markets, and cautious strategic buyers continued to limit liquidity options for VC-backed companies across the region.
Latin America VC activity
Stanford said that only seven LatAm-based funds have closed in 2025, underscoring the serious situation the region’s VC market is facing. During the peak years of 2021 and 2022, Latin American VCs closed 57 and 61 funds, respectively. The region’s lowest annual new fund count was 17 in 2015.
