United States

The AI space continued to account for many of the largest deals in the US during Q1’25, including a $40 billion raise by OpenAI, a $3.5 billion raise by Anthropic and a $3 billion raise by augmented reality firm Infinite Reality. A diversity of other startups also attracted sizeable funding rounds in the AI space, including AI for mining exploration company KoBold Metals ($537 million), AI development platform Lambda ($480 million), and humanoid robotics company Apptronik ($403 million). The US government showed firm commitment to development and support of the AI landscape during Q1’25 with the announcement of The Stargate Project — a $500 billion project aimed at building AI infrastructure — funded by investors including OpenAI, SoftBank, Oracle, and MGX.

Defense Tech continued to move up the charts in the eyes of VC investors in the US during Q1’25.The quarter saw a number of large funding rounds in the space, including a $600 million raise by autonomous marine vessel company Saronic Technologies, a $240 million raise by autonomous drone company Shield AI, and a $250 million raise by anti-drone tech firm Epirus. Relatedly, there has also been growing interest in spacetech — a very complementary area of investment to defense tech — as VC investors recognize the importance of securing assets in the stratosphere and beyond.

Venture debt continued to expand its role in the VC ecosystem in Q1’25, particularly given that as overall exit markets have contracted, VC firms have become more selective with equity. This, paired with the expansion of private credit in general — venture and otherwise — has provided some startups the opportunity to push back new funding rounds given the economic and geopolitical uncertainties affecting the market. While the cost of venture debt can be high, it can be particularly attractive for startups that are at or close to profitability and believe they have the economics to handle the debt load and interest.

The US is home to numerous fintechs that are at the front of the line from a maturity perspective, which has made them good candidates to lead an IPO charge. During the quarter, Sweden-based Klarna made big moves towards a US-based listing, including forging a partnership with US-based OnePay to offer buy now, pay later offerings to Walmart customers5 and filing its intent to IPO on the NYSE with the SEC.6 However, following tariff announcements that sparked market volatility, Klarna put its IPO on pause, opting to wait for a more stable environment.

Despite shifting government priorities, alternative energy solutions remained quite high on the radar of VC investors in the US during Q1’25, in addition to technologies focused on providing more efficient energy production or more efficient energy consumption. During the quarter, advanced nuclear energy developer X Energy raised close to$700 million, while nuclear fusion-focused Helion raised $425 million. Growing recognition of the need to meet rapidly rising energy demands will likely continue to spur investment in the alternative energy space heading into Q2’25.

Given the extended drought in the IPO market, secondaries have continued to fill a void in the US in terms of providing liquidity to employees and early investors. The perception of secondaries has shifted significantly over the last 18 months; historically secondaries have been heavily discounted, while more recent secondary transactions have seen discounts narrow. This may reflect a number of trends, including companies choosing to stay private and using secondaries to provide employee and investor liquidity opportunities.