AI startups get 53 per cent from 2025 venture capital investment
AI startups get 53 per cent from 2025 venture capital investment
Publish Date: 2026-02-06 00:07:00
Source Domain: guardian.ng
- In 2025, AI became the dominant sector in venture capital, capturing 52.7% of the $512.6 billion of investments made globally.
- AI received an unprecedented $270 billion, which surpassed the collective investments across all other sectors combined.
- Although the total number of venture capital deals declined throughout the year, AI investments remained resilient.
- For the first time, AI investments overtook all other sectors combined, marking a pivotal turning point for the AI sector.
- VC firms have turned to a more selective approach since 2021-2022, backing established AI companies with proven applications or those focusing on critical AI and cloud infrastructure.
- Major funding rounds in 2025, such as the $40 billion raise by OpenAI, underscore the trend towards investing in established, reputable AI companies.
- Despite a decrease in overall deal volumes, AI’s share of venture capital funding continued to steadily increase throughout the years from 23% in 2023 to 52.7% in 2025.
- The trend signifies a strong, sustained interest in AI, driven by competition and the concentration of investment in elite AI startups.
