Funding trends for tech startups 2025

**Artificial Intelligence (AI) and Web3 Technologies Dominate Funding in 2025**

1. **AI Funding Surge**: AI-related companies have seen a significant increase in funding, raising $118 billion in 2025, up from $108 billion in 2024. This surge is driven by major investors like SoftBank, Meta, and venture capital firms, indicating the growing importance of AI across sectors.
- **Concentration of Capital**: A notable trend is the concentration of funding into fewer companies, reflecting strong growth potential and investor interest in established AI players.
- **Sectoral Investments**: AI funding is concentrated across various sectors, including productivity and CRM, AI-native solutions, and specialized AI applications in law, finance, and healthcare.
2. **Web3 Startups Gain Momentum**: Web3 startups have attracted $9.6 billion in venture capital funding in Q2 2025, marking the second-highest quarterly total on record. Despite a notable drop in the number of deals, the sector shows resilience, particularly in Series A rounds and digital asset infrastructure startups.
- **Series A Revival**: Series A funding has seen a rebound, with a high median round size of $17.6 million across 27 deals, totaling $420 million—the highest since early 2022.
- **Digital Asset Infrastructure**: Digital asset infrastructure startups have received substantial funding, with notable investments in validator networks, rollup layers, and compute primitives for AI-aligned consensus models.
3. **U.S.-India Alliance for Deep Tech**: A coalition of over $1 billion has been pledged by U.S. and Indian venture capital firms to support deep tech startups in India, addressing funding concerns and strengthening tech ties.
- **Addressing Funding Concerns**: The alliance aims to channel long-term private capital into deep tech ventures, addressing criticisms of Indian startups focusing on consumer delivery rather than innovation.
- **Key Players**: Notable investors like Accel, Blume Ventures, and Premji Invest are part of this coalition, supporting startups in areas like space-tech, drone manufacturing, and AI-driven diagnostics.

In conclusion, 2025 has seen a strong surge in funding for tech startups, particularly in AI and Web3 sectors. These trends reflect the growing investor confidence and the strategic importance of AI and Web3 technologies in shaping the future.