The venture capital market continues to grow: the combined value of global funding rounds rose to 190 billion dollars during the first half of the year, or 25% more compared to the same period last year.
The venture capital market continues to grow: recent analysis revealed the combined value of global funding rounds rose to 190 billion dollars during the first half of the year, or 25% more compared to the same period last year. A unique aspect of this story is that while the combined value is growing, the number of deals themselves is declining, as there are a lot more large and mega deals.
Regular and not that regular political and economic shifts, paired with the leapfrogging progress of technology, mean that VCs need to be faster and more agile to be able to spot the right opportunities. Some are even trying to look ahead and focus specifically on the emerging sectors with tremendous growth potential, resulting in dozens of new funds launched in 2025.
This is good news for those seeking investments: the more diversity there is in the VC landscape, the greater the chances of coming into contact with those that can provide you with specialized support and capital.
While many emerging tech fields have seen rising attention, it is the defence funds that have been the most impactful in recent years. Russia’s invasion of Ukraine and continued threats to the rest of the continent, combined with the growing pragmatism of the US, have profoundly shaken the political and economic forces in Europe. Tech-focused media outlets count at least 12 European defence-focused funds active in 2025. For the first time in decades, the European Union is heavily investing in its defense industry.
The ambitious plan is to enhance the EU's defence readiness significantly and spend up to €800 billion by 2030. To achieve this goal, the European Defence Industrial Strategy (EDIS) was unveiled on 5 March 2024, proving the seriousness of the EU’s ambition.
Defence tech has already become one of the hottest sectors in Europe for investors. It is estimated that during the first six months of the year, VC funds invested a staggering €946.3 million into defence startups. That’s a 26% increase compared to the same period in 2024.
A bubble that never bursts?
While this growth of investments into the defense industry is still surprising to some, the dominance of AI has already become something of a constant, currently raking in 53% to 64% of total global venture deal value. However, there are some early (or, as some would tell you, not that early) voices forecasting a possible change.
While OpenAI, the biggest AI tools developer out there, is currently eyeing an astronomical $500 billion valuation and so far received tens of billions of dollars in investment from Microsoft, Softbank, and Nvidia, among others, its CEO, Sam Altman, has recently hinted that there are some signs of a bubble. He himself drew from a quite recent example: the dot-com bubble back in the late 90s, when the craze of investing in fresh web companies ended up in dozens of bankruptcies and hundreds of millions lost.
For now, the VCs seem to be confident in the further growth: investments in GenAI surged to $49.2 billion in the first half of 2025, outpacing the total for all of 2024 ($44.2 billion) and more than double the total for 2023 ($21.3 billion). AI appears in many of the biggest funding rounds, and startup funding in the first six months of 2025 jumped to $162.8 billion, marking the strongest performance since the same period in 2021.
We are yet to see if Altman’s utterances will have any effect on the outlook of the investors.
While it’s perfectly reasonable to talk about the AI bubble, it would be naive to think that the technology itself will disappear. You cannot put the genie back into the bottle, and AI is here to stay. The question is not if but how.
One definite answer is as a part of the already existing fields. For example, AI is becoming an integral part of the next-gen healthcare, streamlining everything from diagnosis to drug discovery and proactive health management.
The healthcare industry overall is on the rise. European healthtech startups raised €6.21bn in the first half of 2025. This rise was especially sharp starting from late 2024. This rush of capital correlates with the pressure on healthcare systems to cut long-term costs and move toward more preventative care.
Longevity is not just a fancy buzzword that you constantly hear on the podcasts. VCs such as LongeVC, Longevitytech.fund, and Laura Deming’s Longevity Fund are just a few examples of the rise of this industry. Additionally, while the early funds were relatively small, in recent years their size has increased substantially, further illustrating how promising this industry seems to be for investors
This can also be said about all of the significant fields that attract VC funds’ interest. Founders are raising bigger funding rounds—all at once. The share of tech startups with more than 36 months of runway increased by 6% since the first half of 2023. Typical fundraising “runway” is lengthening as well. Startups are now urged to plan for at least 24–36 months, compared to the old 12–18 month norm.
However, while deal sizes have grown, investors are more selective as fewer startups are getting funded. Capital is increasingly concentrated in “category leaders” with proven traction. There is more emphasis on efficiency, sustainability, and the ability to survive longer before the next round.
Simply put, VC funds want startups to practice longevity. A tall order in a shaky world full of tensions, and the fear of hearing a loud “pop!”.
