Global Startup Funding Hits $91B in Q2 2025 as AI, M&A Surge

What happened

Global startup funding reached $91 billion in Q2 2025, up 11% from the same period last year but down 20% from the previous quarter. The surge in funding was accompanied by a significant increase in global mergers and acquisitions activity.

Why it matters

• The continued rise in funding highlights sustained investor interest in startups, especially those focused on artificial intelligence.
• The drop in quarterly funding suggests a possible shift in investor caution or market saturation after a period of rapid growth.
• Increased M&A activity indicates more startups are exiting via acquisitions rather than IPOs, affecting the venture ecosystem’s liquidity.

Key facts

1. 1. Global startup funding totaled $91 billion in Q2 2025.
2. 2. Funding rose 11% year over year but fell 20% quarter over quarter.
3. 3. Mergers and acquisitions activity surged globally during the same period.