Both VC investment and the number of VC deals fell in the Americas during Q2’25.

      The US attracted the largest deals in the Americas during Q2’25, including large raises by Anduril Industries ($2.5 billion), World View ($2.6 billion), and Safe Superintelligence ($2 billion). Outside of the US, the largest deals of the quarter included a $160 million raise by Canada-based network security enabler Tailscale, a $127 million raise by Mexico-based used car sales platform Kavak, and $80 million raises by Brazil-based corporate expense management firm Clara and Canada-based mineral recovery cleantech Destiny Copper.


      Americas Q2'25 highlights

      • VC-backed companies raise $72.7 billion across 3,425 deals
      • Mega rounds continue their upward trend
      • Canadian deal value sees a modest increase this quarter
      • Mexico posts its strongest quarterly total since 2022
      • Software dominates among the top 10 investments
      Venture financing chart Americas

      Uncertainty driving caution among VC investors

      VC investors in the US were more cautious with their capital in Q2’25, driven in part by uncertainties, including shifting US tariff policies, potential exposure to counter tariffs by other jurisdictions, the economic impact of major headcount reductions within the federal government, and rapidly evolving geopolitical conflicts and tensions. Deal speeds slowed considerably as some VC investors — particularly corporates — extended their due diligence processes or decided to hold back from making major investments until the market becomes more predictable. Seed and early-stage deals saw the biggest slowdown in activity during Q2’25 as VC investors focused heavily on the profitability and growth trajectories of potential target companies. 

      Americas sees some bifurcation in terms of VC investments

      Within the Americas, there was some bifurcation of investment trends in Q2’25, with startups in a number of sectors feeling a lot more pressure than others. This was most prominent in the US, where sectors viewed as critical to the national benefit — including defencetech and AI infrastructure — continued to attract robust levels of VC investment, while sectors like electronics, automotive manufacturing, and consumer goods saw much more of a funding pinch. 

      Canada sees relatively steady quarter of VC investment in Q2’25

      The level of VC investment in Canada held steady quarter-over-quarter, helped by a diversity of investments, including the $160 million raise by Tailscale, the $80 million raise by Destiny Copper, and a $76 million raise by small-business finance platform Keep; medtech company Lungpacer also raised $75 during Q2’25. VC investors in Canada were quite conservative with their capital in Q2’25, focusing heavily on cash management, cost management, and late-stage companies within reach of breaking even or becoming cash flow positive.

      During Q2’25, fintech, cleantech, healthtech, and alternative energy remained the most attractive sectors for venture capital investment in Canada. Interest in defence technology is also gaining momentum, as Ottawa and allied nations prepare to boost military spending in response to America’s new isolationist foreign policy stance. The Canadian government also continued with its efforts to enable AI development; during the quarter, it opened applications for the AI Compute Access Fund — a $300 million fund aimed at making it more affordable for small and medium sized businesses in Canada to access the computing power needed to develop AI applications.1

      Muted quarter of investment in Mexico

      Within Mexico, VC investment was very quiet in Q2’25. Car sales platform Kavak was one notable exception; the company raised $127 million during the quarter, although the raise was a down round which saw its valuation cut sharply from $8.7 billion (in 2021) to just $2.2 billion.2 VC deal volume was also weak in Q2’25 as VC investors showed great reluctance to invest in Mexico given the amount of geopolitical volatility, uncertainties related to US tariffs, and concerns relating to judicial reforms within the country.

      Fintech sector continues to attract investments across the Americas; interest in crypto on the rise

      The fintech sector saw a significant amount of attention in the Americas during Q2’25, with fintechs across the region raising solid funding rounds, including US-based open-banking platform Plaid ($575 million), Brazil-based corporate expense management firm Clara ($80 million), and Canada-based small business finance platform Keep ($76 million). 

      Within the fintech sector, there was also a noticeable uptick in interest in crypto during Q2’25, helped by the successful US-based IPOs of stablecoin issuer Circle and crypo investment platform eToro. The US also saw continued movement to build out and institutionalize the crypo ecosystem, driven in part by the new administration’s pro crypto stance and by regulators moving to provide clarity around the definition of securities, the treatment of stablecoins, and the accounting rules related to the holding of digital assets.


      Trends to watch for in Q3’25

      Heading into Q3’25, geopolitical and trade uncertainties are expected to remain a major consideration for VC investors in the Americas. Sectors more susceptible to tariff uncertainties — like manufacturing and consumer goods — could see VC investors holding back until tariff policies stabilize.

      AI and defencetech are expected to remain very hot sectors of VC investment in the Americas during Q3’25, driven primarily by activity in the US. In both the US and Canada, healthtech is also expected to remain attractive to VC investors, driven by the demand for more efficient and effective healthcare solutions and by changing consumer behaviors, including a growing interest in data driven health analytics and solutions.

      VC investment in Mexico is expected to remain dry well into Q3’25, with many VC investors waiting to see whether judicial system changes set to take place in August work as desired. Eyes are also on the National Bank of Mexico to see whether it might halt future interest rates cuts in order to rein in the appreciation of the peso. Across Latin America more broadly, fintech is expected to remain the most attractive area of VC investment given the significant perceived opportunities in the space. 



      Because of all the volatility in the market and the geopolitical tensions with the US, VC investors are quite reluctant to put their money into Mexico right now. The same is true for M&A transactions. Although fintech is a bit of an exception. It’s still attracting some attention and investments because of the significant opportunities investors see there. I believe that fintech will see more investment over the next couple of quarters.

      Ignacio Garcia de Presno

      Head of Deal Advisory and Strategy, Mexico and Central America

      KPMG in Mexico


      Venture Pulse Q2’25

      Explore the latest deals and venture capital trends through the second quarter of 2025


      Explore the reports

      A global overview of key findings uncovered from the Q2’25 Venture Pulse Report.

      An overview of key findings uncovered from the Q2’25 Venture Pulse Report in the US.

      An overview of key findings uncovered from the Q2’25 Venture Pulse Report in Europe.

      An overview of key findings uncovered from the Q2’25 Venture Pulse Report in Asia.

      1 https://www.newswire.ca/news-releases/government-of-canada-opens-applications-for-the-ai-compute-access-fund-875863402.html

      2 https://www.contxto.com/en/funding/kavak-raises-127-million-round-and-ends-up-with-75-lower-valuation/

       

      Our people

      Conor Moore

      Global Head of KPMG Private Enterprise

      United States

      Ignacio Garcia de Presno

      Head of Deal Advisory and Strategy, Mexico and Central America

      KPMG in Mexico

      Lindsay Hull

      Senior Director, KPMG Private Enterprise, Emerging Giants Network

      KPMG International