Why did global venture funding drop after a record month

Global venture funding totaled $23 billion in April 2025, unchanged from the previous year but down from $68 billion in March. April marked one of the slowest months for funding in the past year. The decline followed a strong March, which experienced a record $40 billion financing for an AI company. The largest funding deal in April was $2 billion for an AI research lab, raising its valuation to $32 billion. 

The artificial intelligence sector dominated startup funding in April, attracting about $7 billion, representing 30% of global funding. Healthcare and biotech received $4.1 billion, while financial services obtained $3.8 billion. U.S.-based startups raised $14 billion, comprising approximately 62% of global funding, an increase from 2024. China collected $1.7 billion, with the UK and India each securing over $800 million.

Key investors led significant post-seed rounds, with private equity and venture capital firms contributing to major deals. Funding distribution included 10% for seed-stage companies, 37% for early-stage startups, and 53% for late-stage financings. The funding results reflect uncertainty in the venture market influenced by economic challenges, such as tariffs and trade tensions. Data reported is as of May 2, 2025, and covers various stages of funding, including seed, early, and late stages.

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