In the first quarter of 2025, artificial intelligence (AI) companies have captured a significant share of the global venture capital landscape, securing 20% of all venture deals, according to the latest State of Venture report. This marks the highest share on record, doubling since the launch of OpenAI’s ChatGPT in 2022.
Singapore’s overall funding and deals activity both fell during the period. The quarter saw 78 deals versus the 99 registered in the previous period. Furthermore, funding was pencilled at $0.9b, compared to the $1.9b previously.
The report highlights a notable trend towards early-stage investments, with seed and Series A deals accounting for 70% of AI transactions, although this is a slight decrease from the previous year. The quarter also set a new record for early-stage AI mega-rounds, with companies like Isomorphic Labs, Apptronik, and Lila Sciences raising a combined $1.8b in deals worth $100m or more.
The median deal size for early-stage investments has risen to $2.7m, up from $2m in 2024. This increase suggests that investors are focusing their resources on fewer, more promising opportunities rather than spreading capital across a wide range of start-ups.
Additionally, the quarter witnessed 12 mergers and acquisitions (M&A) exits valued at over $1b, surpassing previous records. Google’s $33b acquisition of Wiz stands out as the most valuable M&A deal for a private, venture capital-backed company, contributing to a total of $56b across these transactions.
Despite a decline in the number of deals to 5,846, global venture funding reached $121b, the highest since Q2 2022. OpenAI’s substantial $40b deal played a significant role, accounting for one-third of the total funding. This trend underscores a growing concentration of capital in fewer, larger deals, particularly within the AI sector.
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