United States

VC investment in the US declined in Q2’25, driven in party by a fresh surge of uncertainty powered by concerns over the impact of evolving tariff policies. Some VC investors chose to pull back from making major investments in sectors particularly exposed to tariff risks — such as manufacturing and durable and consumer goods — until policies get stabilized. The quarter-over-quarter decline in US-based VC investment, however, was over-emphasized by the record $40 billion raise by OpenAI in Q1’25 — a deal that exceeded the combined total of VC investment in both Europe and Asia during Q1’25. 

AI remained a hot ticket for VC investment in the US during Q2’25; among the deals completed during the quarter, AI-powered defencetech Anduril Industries raised $2.5 billion, AI system developer Safe Superintelligence raised $2 billion, AI-empowered coding assistant company Anysphere raised $900 million, AI-native data security firm Cyera raised $500 million, and robotics firm Skild AI raised $540 million. While still an incredibly robust quarter of AI investment, Q2’25 did not have the same frenzied pace of mega-dealmaking compared to other recent quarters.

This likely reflects a combination of VC investors wanting to see how specific AI-focused business models pan out and investors shifting their focus from capital-intensive model development to more emergent areas of AI, including high potential, vertical-focused solutions.

The end of Q1’25 and beginning of Q2’25 saw significant volatility in the US stock markets, driving a number of companies to delay or postpone their planned IPO exits. Over the remainder of the quarter, however, markets stabilized and rebound relatively quickly. Several companies were quick to take advantage on this perceived sense of stability, including a number of mature fintechs. In May, Israel-based online broker and crypto-focused firm eToro raised $620 million in its IPO on the Nasdaq, giving it a $5.6 billion valuation.¹ In June, blockchain-based infrastructure company and stablecoin issuer Circle raised $1.1 billion in its debut on the NYSE, with its share price jumping 168 percent in first day trading; while it is still early days, Circle’s shares have jumped considerably since its IPO.² US-based digital bank Chime also held an IPO in June, raising $864 million in its debut on the Nasdaq.

Outside of the fintech sector, the healthtech also saw a number of solid IPOs during the second half of Q2’25; most notably, virtual physical therapy company Hinge Health raised $437 million in its IPO in May, while digital health provider Omada Health raised $150 million in its IPO in June. While the IPO activity seen in the US during Q2’25 was positive, it remained shy of predictions made in late 2024.

At mid-year, fundraising by VC funds in the US was down substantially, even compared to the subdued year that was 2024. The dearth of fundraising likely reflects a combination of factors, including the uncertain market, the lack of liquidity resulting from the challenging exit environment, and the availability of lower-risk investment alternatives.

In the first half of 2025, the US saw a number of new SPAC listings, helping buoy listing activity in the US. While SPAC mergers have not been particularly prominent in the US market over the last several quarters, the upswing in activity may reflect investors laying the groundwork for accelerating the ability of AI-focused startups to go public over the next few years.