Key Takeaways
- • Global venture capital funding reached $189.93 billion in H1 2025, representing a 25% year-over-year increase from $152.24 billion in H1 2024, signaling strong momentum in private equity-backed deal activity.
- • Technology, media and telecommunications (TMT) dominated investment allocation, accounting for 52.7% of total transaction value ($13.56 billion) in June across 423 funding rounds, with application software subsectors leading deal volume at 207 transactions.
- • Antler Innovation led VC activity by deal count with 210 funding rounds ($4.1 million aggregate), while Andreessen Horowitz commanded the largest capital deployment ($119.9 million across 85 rounds), demonstrating divergent strategies between volume and capital concentration players.
- • Defense technology and AI systems attracted mega-round capital, with Anduril Industries securing a $2.5 billion Series G from Founders Fund and Thinking Machines Lab raising $2 billion led by Andreessen Horowitz, reflecting institutional appetite for strategic technology verticals.
- • June transaction values totaled $25.73 billion, up from $23.38 billion in May, indicating sequential momentum acceleration in the second half of 2025.
Summary
Global venture capital funding demonstrated robust growth in the first half of 2025, with deal values reaching $189.93 billion according to S&P Global Market Intelligence—a 25% increase compared with $152.24 billion for the same period in 2024. This expansion reflects sustained institutional and PE-backed investor confidence despite macroeconomic complexities. June activity specifically showed continued momentum, with monthly transaction values climbing to $25.73 billion from $23.38 billion in May.
The venture landscape remains heavily concentrated within technology-focused sectors. The TMT vertical captured 52.7% of total investment value in June, accumulating $13.56 billion across 423 funding rounds. Within TMT, application software remained the preferred subsector with 207 deals, followed by system software with 45 transactions. However, deal volume across the 10 TMT subsectors declined versus June 2024, suggesting consolidation around larger, more mature opportunities rather than expansion into nascent verticals.
Venture capital firm activity revealed stark differences in deployment strategies. Antler Innovation Pte. Ltd. led by transaction frequency with 210 funding rounds totaling $4.1 million, emphasizing early-stage deal sourcing. Y Combinator followed with 128 rounds worth $28.6 million, while Andreessen Horowitz ranked third by deal count but dominated in capital concentration with 85 rounds totaling $119.9 million—underscoring the firm's focus on larger, later-stage investments.
Mega-round activity continued to define H1 2025 capital allocation patterns. Anduril Industries, a defense technology manufacturer, secured the largest June transaction—a $2.5 billion Series G round from Founders Fund—earmarked for manufacturing and production scaling. Thinking Machines Lab, a San Francisco-based AI systems developer, closed the second-largest round at $2 billion led by Andreessen Horowitz. These transactions exemplify institutional investor appetite for defensible technology positions in strategic sectors including AI and defense innovation.
The venture landscape remains heavily concentrated within technology-focused sectors. The TMT vertical captured 52.7% of total investment value in June, accumulating $13.56 billion across 423 funding rounds. Within TMT, application software remained the preferred subsector with 207 deals, followed by system software with 45 transactions. However, deal volume across the 10 TMT subsectors declined versus June 2024, suggesting consolidation around larger, more mature opportunities rather than expansion into nascent verticals.
Venture capital firm activity revealed stark differences in deployment strategies. Antler Innovation Pte. Ltd. led by transaction frequency with 210 funding rounds totaling $4.1 million, emphasizing early-stage deal sourcing. Y Combinator followed with 128 rounds worth $28.6 million, while Andreessen Horowitz ranked third by deal count but dominated in capital concentration with 85 rounds totaling $119.9 million—underscoring the firm's focus on larger, later-stage investments.
Mega-round activity continued to define H1 2025 capital allocation patterns. Anduril Industries, a defense technology manufacturer, secured the largest June transaction—a $2.5 billion Series G round from Founders Fund—earmarked for manufacturing and production scaling. Thinking Machines Lab, a San Francisco-based AI systems developer, closed the second-largest round at $2 billion led by Andreessen Horowitz. These transactions exemplify institutional investor appetite for defensible technology positions in strategic sectors including AI and defense innovation.
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