AI startups captured 86% of US venture capital in the first half of 2026, according to PitchBook and the National Venture Capital Association. This shift has left non-AI founders struggling to secure funding, particularly in seed and Series A rounds.
TL;DR
- AI startups captured 86% of US venture capital in H1 2026, totaling $355.9B out of $412.7B.
- Non-AI startups face significant challenges in securing funding, with median Series A valuations five times lower than AI startups.
- The concentration of funding in AI startups has led to a dramatic decrease in the number of startups receiving investment.
What happened
According to PitchBook and the National Venture Capital Association's second-quarter Venture Monitor, AI companies took $355.9 billion of the $412.7 billion in total US venture capital deployed in the first half of 2026, roughly 86% of every dollar invested.
Crunchbase's quarterly tally shows AI's share of global venture funding easing to 64% by the third quarter, down from above 80% earlier in the year but still dominant.
OpenAI alone raised $122 billion in H1 2026, with Anthropic adding $30 billion, xAI $20 billion, and Waymo $16 billion. These four companies accounted for nearly two-thirds of all global venture funding in the period.
North American deal count fell roughly 26% year over year even as total dollars invested surged about 190%. Fewer companies are splitting a much bigger pie.
Why it matters
The concentration of funding in AI startups has created a challenging environment for non-AI founders, who are now fighting over a sliver of the venture market.
AI foundation model startups raising Series A rounds carried a median valuation of $300 million, versus $55 million for non-AI startups at the identical stage, according to Carta.
Rounds of $100 million or more now account for 87.5% of all US venture capital deployed, up from 43.8% as recently as 2024. The small check, the kind that used to fund a payroll startup or a logistics marketplace, is disappearing from the market almost entirely.
The bar for non-AI companies to graduate from Series A to Series B has significantly increased, with only about 9% of companies raising a Series B within two years, down from roughly 25% before the AI boom.
Key facts
- AI startups captured 86% of US venture capital in H1 2026, totaling $355.9B out of $412.7B.
- OpenAI raised $122B, Anthropic $30B, xAI $20B, and Waymo $16B in H1 2026.
- North American deal count fell 26% year over year while total dollars invested surged 190%.
- Median Series A valuation for AI startups is $300M, compared to $55M for non-AI startups.
- Rounds of $100M or more account for 87.5% of all US venture capital deployed, up from 43.8% in 2024.
- Only about 9% of companies raise a Series B within two years, down from roughly 25% before the AI boom.
- AI's share of global venture funding eased to 64% by Q3 2026, down from above 80% earlier in the year.
Context
This shift in venture capital towards AI startups is unprecedented. At the dot-com peak, internet companies captured roughly 50% of venture capital. AI's current share is somewhere between 60% and 70% higher than that, as a proportion of the whole market.
The concentration of funding in AI startups has led to a dramatic decrease in the number of startups receiving investment. This trend is not sustainable in the long term and could lead to a bubble if the AI trade cracks.
Non-AI founders are finding it increasingly difficult to secure funding. The market is running on a single narrative, and narratives can reverse faster than fundamentals ever do.
