Venture Pulse Q3’25

Global VC investment rose to $120 billion in Q3 2025, up from $112 billion in Q2, underscoring the fourth consecutive quarter of robust global growth. While overall deal volume eased slightly — reflecting a seasonal lull in activity across the Americas and Europe — the broader trajectory of the market remained positive. Investor sentiment improved steadily throughout the quarter, fuelled by renewed optimism around liquidity pathways.

VC investors globally continued to double down on AI in Q3’25, with companies developing AI models and platforms attracting many of the largest funding rounds of the quarter. In addition to the blockbuster $1 billion-plus raises by Anthropic, xAI, and Mistral, New York–based Reflection AI secured $1 billion, reinforcing the sustained appetite for transformative AI bets.

The surge in AI investment was not confined to the U.S. and Europe. In Canada, Cohere raised $600 million, while in China, MiniMax AI closed a $300 million round. Beyond these headline transactions, numerous AI-focused startups across regions secured meaningful growth capital. Highlights included U.S.-based Sierra ($350 million), a developer of AI-powered customer service agents; China-based GLP ($348 million) and Runhui Technology Development ($256 million), both focused on AI-driven data centre development; Sweden-based Lovable ($200 million), which enables AI-enhanced web and app development; and Canada-based Blue J ($122 million), a legal research platform leveraging AI.

Together, these transactions illustrate that AI remains the defining theme in global VC, attracting capital at scale across geographies and use cases — from foundational models and infrastructure to applied vertical solutions. The intense interest in AI solutions has created a highly competitive environment for AI talent across regions; this has led a number of corporates looking to modernise their activities to consider acquiring AI-focused startups in order to gain access to their highly skilled talent.

Amid ongoing geopolitical conflicts and rising global tensions, it is no surprise that defensetech remained a priority for VC investors in Q3’25. The quarter’s largest deal in the sector was a $469 million raise by U.S.-based BETA Technologies, a developer of electric vertical takeoff and landing (eVTOL) aircraft. Other major deals included Castelion (U.S., $350 million), Galactic Energy (China, $334 million), Hadrian (U.S., $260 million), and XPeng Aeroht (China, $250 million).

Investor interest has increasingly concentrated on dual-use technologies — solutions with both commercial and military applications — reflecting a shift toward scalable innovations that can address multiple markets. With governments across jurisdictions accelerating efforts to modernise defence infrastructure and strengthen domestic capabilities, defensetech appears well-positioned for sustained, long-term growth in the global VC landscape.

Looking forward to Q4’25, global VC investment is expected to remain relatively steady, driven largely by continued investment in AI models, industry-focused AI solutions, and AI infrastructure. Robotics is also expected to gain additional traction over the coming quarter. Given AI’s dominance, companies without AI-driven solutions could struggle to attract funding, although in regions like Africa, Latin America and Southeast Asia, fintech will likely remain the top investment priority. Exit activity is expected to grow globally in Q4’25, with a more substantive pickup expected heading into 2026 as more mature startups look to take advantage of the improving IPO environment in the US.