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Q2 Global Venture Funding Climbs In A Blockbuster Quarter For AI And As Capital Concentrates In Larger Companies

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Global venture funding ticked up year over year in Q2 2025, with a greater concentration of capital into the largest funding rounds compared to a year ago, Crunchbase data shows.

Q2 funding reached $91 billion, up from $82 billion in Q2 2024, per Crunchbase data. However, quarter-over-quarter funding fell from $114 billion in Q1, which marked the highest quarter for funding since Q3 2022.

Global funding has increased year over year for the past three quarters, driven primarily by billion-dollar-plus rounds into AI research labs as well as data and infrastructure providers in the sector.

While Q2 capital concentration into the largest rounds was not quite as high as in the prior two quarters, it was still well above historical proportions. Close to a third of all capital in Q2 went to 16 companies that raised funding rounds of $500 million or more, including a $14.3 billion funding to Scale AI, per Crunchbase data.

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AI blockbuster quarter

In another blockbuster quarter for AI funding, $40 billion — or around 45% of global funding — went to the sector, with more than a third invested in Scale AI alone.

All in all, the past three quarters saw record funding to the AI sector.

Foundation model companies raised $5.5 billion last quarter. That included two AI research labs — Thinking Machines Lab and Safe Superintelligence — both a year old or less, raising $2 billion each. Other large rounds in the AI sector were raised by Anduril Industries ($2.5 billion), Grammarly ($1 billion), Anysphere ($900 million) and Helsing ($694 million).

Healthcare and biotech companies raised $14.8 billion in venture funding in Q2, making it the second-largest sector for the quarter. The financial services sector, the third-largest, raised $10.8 billion, per Crunchbase data.

Along with a greater concentration of capital in larger companies, the U.S. predominated, with $60 billion — or two-thirds of venture capital — going to U.S.-based companies in Q2.

H1 2025 grew

H1 2025 posted the strongest half-year for venture capital since the first half of 2022. A total of $205 billion was raised through mid-year, up 32% from H1 2024.

More than a third of H1 funding — $70 billion — went to just 11 companies that raised rounds of $1 billion or more.

Both of the two largest venture fundings on record were raised this year. They were Scale AI, with $14.3 billion in Q2, and OpenAI with $40 billion in Q1. (To find the third-largest venture round on record, you would need to go back to 2018, when Hangzhou-based Ant Group raised a $14 billion Series C funding.)

M&A up in 2025

Q2 2025 was the second-strongest quarter for startup M&A dollar volume since 2021, with $50 billion in reported exit value. Last quarter’s total was down from $71 billion in Q1, although that was the quarter in which Wiz was acquired by Google in the largest-ever acquisition of a private company at a price tag of $32 billion.

OpenAI was the most-active and largest acquirer by amount in Q2, buying four companies including Jony Ive’s Io for $6 billion and Windsurf for $3 billion.

In Q2, 18 companies were acquired for more than $1 billion, Crunchbase data shows. Half of these companies were acquired by public companies, and three by private equity firms. Six of the acquisitions were by private venture-backed companies including OpenAI. They also included Databricks’ acquisition of open source SQL database Neon.

Late-stage gains

All the gains year over year were seen in late-stage funding in the second quarter. Funding reached $55 billion, up more than 53% year over year, and down quarter over quarter by close to a third, Crunchbase data shows.

Early-stage flat

Early-stage funding was flat quarter over quarter in Q2 reaching $26 billion across 1,600 companies with the largest rounds at this stage peaking around $220 million. Larger Series A and B rounds were raised in quantum, energy, self driving, therapeutics and satellite technology, as well as human resources and chat software services, with Series B rounds predominating.

Year-over-year funding was down as Q2 2024 saw multiple billion-dollar Series B fundings to AI companies.

Seed up

Seed funding reached $10.3 billion in Q2. Thinking Machines raised 20% of that with a $2 billion seed round that marked the largest on record at that stage, per Crunchbase data. If not for the Thinking Machines round, seed funding would be flat quarter over quarter and down year over year. (Seed funding totals typically increase over time, as many seed rounds are added to the Crunchbase dataset after the close of a quarter.)

M&A relief

So far in 2025, the proportion of funding to AI has continued to increase, along with funding concentrated in larger rounds. As more funding is committed to private companies, the good news is that M&A is up for a second quarter in a row, rivaling peak M&A amounts in 2021.

Methodology

The data contained in this report comes directly from Crunchbase, and is based on reported data. Provisional data reported is as of July 3, 2025.

Note that data lags are most pronounced at the earliest stages of venture activity, with seed funding amounts increasing significantly after the end of a quarter/year.

Please note that all funding values are given in U.S. dollars unless otherwise noted. Crunchbase converts foreign currencies to U.S. dollars at the prevailing spot rate from the date funding rounds, acquisitions, IPOs and other financial events are reported. Even if those events were added to Crunchbase long after the event was announced, foreign currency transactions are converted at the historic spot price.

Glossary of funding terms

Seed and angel consists of seed, pre-seed and angel rounds. Crunchbase also includes venture rounds of unknown series, equity crowdfunding and convertible notes at $3 million (USD or as-converted USD equivalent) or less.

Early-stage consists of Series A and Series B rounds, as well as other round types. Crunchbase includes venture rounds of unknown series, corporate venture and other rounds above $3 million, and those less than or equal to $15 million.

Late-stage consists of Series C, Series D, Series E and later-lettered venture rounds following the “Series [Letter]” naming convention. Also included are venture rounds of unknown series, corporate venture and other rounds above $15 million. Corporate rounds are only included if a company has raised an equity funding at seed through a venture series funding round.

Technology growth is a private-equity round raised by a company that has previously raised a “venture” round. (So basically, any round from the previously defined stages.)


Stay up to date with recent funding rounds, acquisitions, and more with the
Crunchbase Daily.



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Funding & Investment in Travel

Long queues at Malaysia’s checkpoints after country’s worst breakdown in autogates affecting foreign travellers

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SINGAPORE: Long queues are taking place at major immigration checkpoints in Malaysia on Saturday (Jul 19) after it reportedly suffered the country’s worst-ever breakdown in the autogate system since Friday noon.

The Star reported that tens of thousands of foreigners were affected, involving more than 200 autogates across the country. However, Malaysian passport holders were able to use the autogates with no issues.

Kuala Lumpur International Airport Terminal 1 and 2, as well as Johor’s Bangunan Sultan Iskandar (BSI) Customs, Immigration and Quarantine complex and Sultan Abu Bakar CIQ (KSAB) were among the entry points affected.



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The pretty UK seaside town rammed full of independent shops | UK | News

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Salcombe is full of independent shops and tourism is a huge part of the economy (Image: Jonathan Buckmaster)

In Salcombe, everyone is proud to call this place home. It’s easy to see why, especially if you visit on a sunny summer’s day when the sun bounces off the turquoise water. But the seaside town is far from a  hidden gem. Visitors return to this pretty part of Devon year after year, bringing with them some serious cash.

Tourism is worth a staggering £266 million a year to the South Hams district, according to council research, and it accounts for one in 10 jobs, with almost 4,500 people working in the industry. However, locals have previously expressed frustration at overcrowding in the peak summer season, when the streets become heaving with visitors, and reports say the small community of 2,000 swells to 20,000.

Rocket Week draws crowds at the yacht club in Salcombe

Crowds watching Rocket Week at the yacht club in Salcombe (Image: Jonathan Buckmaster)

Salcombe Mayor Jasper Evans

Salcombe Mayor Jasper Evans showed us around the seaside town (Image: Jonathan Buckmaster)

As we wander through the charming streets full of independent shops towards the yacht club where a race is taking place, we begin to realise just how tight-knit the permanent community is.

Friendly faces regularly stop Mayor Jasper Evans for a chat, and he has a wealth of knowledge on all the local businesses; however, he assures us it’s not so tight-knit that outsiders are not welcomed.

Mr Evans tells the Express: “Tourism is really important. The visitor economy is really important for Salcombe. It’s the main part of the economy.”

He takes us to the harbour through more pretty streets where we chat to an RNLI volunteer, who shares a similar feeling. 

He smiles as he tells us: “We all joke about ‘bloody tourists’, but you know, that’s our bread and butter. We love them really when you stop to think. People, in general, are most generous. 

“The problem is in the winter, it’s naked. Most locals would say it’s kind of nice to have the town back, but you do look forward to the visitors coming.

“Obviously, the economy is important to all of the locals, but it is also nice to see people around the town. It’s nice to see people who appreciate what we do.”

Independent shops on a street in Salcombe

There are plenty of independent shops in Salcombe (Image: Jonathan Buckmaster)

Howard Davies at Salcombe Distillery

Howard Davies runs the Salcombe Distillery (Image: Jonathan Buckmaster)

It’s a theme we notice throughout the day as we chat to locals who have made businesses that thrive on tourists searching for uniquely Devonian experiences.

From the Salcombe Brewery to the gin distillery, or the many bustling restaurants and cafes serving up fresh seafood, we start to understand that independent businesses are a huge part of Salcombe’s appeal. 

We head to Island Street to the Salcombe Distillery, where a gin-making course is taking place as we chat to the co-founder and director, Howard Davies.

He tells us: “I think what the South West does very well is producing very high quality products, be that food and drink, clothing or accessories. 

“Often you can get levels of quality from boutique independent local companies that you may not get from a broader multinational organisation. 

“I don’t know what you’re like, but when I go away, I love to buy local. There’s something special about it, and you want to support the local market.”

He adds: “I think for a lot of South West communities, ultimately tourism is a really important part of the economy.

“Now, obviously, it brings challenges because you have locals who live here, and it’s trying to get that balance between affordable housing for people who live locally, but you need employment for people who live locally as well.”

Theo Spink at the estate agency where she works

Theo Spink says tourism keeps local people in jobs (Image: Jonathan Buckmaster)

As we wander down Island Street, a place full of artisanal local businesses, we chat to Theo Spink, who lives in the area and works at Luscombe Maye estate agents. 

She tells us: “A lot of people, including myself, depend on our jobs for the holiday trade, so people are able to live here because there is business to be had. We are all hugely dependent on that holiday trade.”

When I ask if it’s ever overwhelming, she responds: “It can sometimes be, but I think what people need to remember is that it’s just six weeks. 

“It’s those state school holidays where it’s crazy. But if it wasn’t that crazy, people wouldn’t make enough money to sustain their businesses year-round.”

When we chat to Mayor Evans about the volume of tourists, he acknowledges: “It’s very concentrated in the summer season and a few other high points in the year.

“We’re trying to diversify here so that the months when the tourists don’t come, we still have economic activity. It’s really important, we have to remember our permanent residents.”

He tells us that Salcombe also has a fishing industry, which is no better exemplified than in our next stop at the Crab Shed, a friendly seafood restaurant where we see an enormous Devonian crab being served up for lunch to a father and daughter.

As we sit on a bench in the sun overlooking the water, owner Emma Langmaid enthuses: “We love tourism, it’s our business. We’ve got a beautiful place to showcase. 

“I think it’s incredibly important, it’s important for everything. Our livelihood is down here, so yes it has to happen.”

Emma Langmaid at the Crab Shed

Emma Langmaid at the Crab Shed, which serves up generous portions of Devonian crab (Image: Jonathan Buckmaster)

Some people who work in traditional industries have more mixed views, as we learn from Mike Wrigley, who works in one of the few remaining boat yards on Island Street. 

The artisanal hub used to be full of workshops, metal workers, riggers and engineers, and we’re told nearly all of the residences on the opposite side of the street have been purchased by second homeowners.

He tells us: “It’s swings and roundabouts. Salcombe has been a tourist town for the best part of 100 years, so it is part of how the place ticks. 

“It’s not so much the tourism that’s causing the problem, it is the second homes side of things. There are so many second homes now, it is killing the local community in a way.”

He adds: “Even when I started working in this workshop, there was still a reasonable number of people living in this street, but it’s pretty much all gone, there are only one or two now. 

“All the boat yards have disappeared, and there are only three of us here now. It was all workshops [but they have gone too].”

However, he appreciates the atmosphere of tourist season. 

He said: “In season, it’s nice because there are a lot of people that make the place feel alive again. It’s only really the school holidays, July and August, that it generally just gets too many. You know, the whole place becomes a struggle to live in.” 

Mike Wrigley standing outside a boatyard in Salcombe

Mike Wrigley works at one of the few remaining boatyards in the town (Image: Jonathan Buckmaster)

Island Street used to be full of workshops and merchants and is now full of independent shops

Island Street used to be full of workshops (Image: Jonathan Buckmaster)

We end our trip by visiting the harbour master, who undoubtedly has the best office view in the town, looking straight onto the water.

With a 22-year career under his belt at the harbour, Cameron Sims-Stirling tells us it is one of the area’s biggest trading points.

He says: “Tourism is a huge part of our everyday living, and keeps us in jobs all year around here. 

“I think times have changed. I think there definitely was that sort of, oh second home owners and holidaymakers, but I think the penny dropped and we just went, well, none of us would have jobs. With any seaside town, there can be that delicate balance.”

He smiles as he tells us: “On a day like today, try and beat it. It’s epic. That’s why people come here.” We can’t help but agree.



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Japan Tourism: West Japan Train Offers Overnight Travel for Casual Travelers

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The West Express Ginga heads toward Shimonoseki with the Seto Inland Sea visible from the windows.

After the retirement of the cross-country long-distance sleeper trains known as “Blue Trains,” the West Express Ginga limited express began operations in September 2020 as an overnight train for casual journeys.

These days, tickets for scenic trains are usually sold as part of package tour products, and if they are treated as charter group trains, they often do not even appear on timetables.


However, the Ginga, operated by West Japan Railway Co., is listed on timetables as a special train which you can ride without being charged a sleeper fee. Passengers are required only to pay a surcharge for a reserved seat express fare or Green Car first class seat. We can say this is a night train with a completely new concept.

The Ginga train is a specially modified 6-car 117-series electric train that was manufactured before JR companies were privatized, and it is painted in a beautiful lapis lazuli blue.

Car No. 1 is equipped with Green Car reserved seats, and Cars No. 2, 3 and 5 have normal reserved seats that include couchettes, reclining seats and family cabins. Car No. 6 has Green Car private rooms, and Car No. 4 consists entirely of free space. Passengers can choose their preferred seat for a long, comfortable ride.

©West Japan Railway Co.
First-class seats that convert into beds in Car No. 1

The Ginga operates on three main routes depending on the season in the Sanyo, Sanin and Kinan (Wakayama) regions. This year, the Sanyo route runs between Kyoto and Shimonoseki stations until Aug. 9, and the Kinan route between Kyoto and Shingu stations in Wakayama Prefecture from Aug. 25 to Oct. 29.

One of the highlights of the West Express Ginga is its hospitality, which rivals that of package tour trains.

©West Japan Railway Co.
A premium room in Car No. 6 offers private space.

The Sanyo route Ginga departs Kyoto at 9:15 p.m., heading west along the Tokaido and Sanyo lines as night falls. The train arrives at Himeji Station at 11:48 p.m. on Fridays only, and departs again at 12:42 a.m., giving passengers time to enjoy Himeji’s famous soba noodles known as “Maneki no Ekisoba” on the platform.

The Seto Inland Sea glistens as the sun rises the next morning. The train stops for about 18 minutes at Yanai Station, where passengers can buy taimeshi, sea bream rice which is a local specialty in ekiben boxed meals, from a vendor on the platform.

©West Japan Railway Co.
A vendor carries a tray of ekiben boxed meals on a platform at Yanai Station. He sells boxes of local specialty taimeshi seabream rice, right.

Tourist information about the Yamaguchi cities of Yanai, Yamaguchi, Ube, Hagi, Iwakuni and Hofu is available in the train, and on specific days, local specialties are sold on board between Iwakuni and Shin-Shimonoseki stations.

The eastbound train departs Shimonoseki at 7:43 p.m. There are no long stops, but the onboard service is excellent. Local specialties from Shimonoseki, Hofu, Shunan, Yamaguchi and Iwakuni cities are sold onboard on specific days. Passengers can also enjoy local sake, beer and other alcoholic beverages as one of the perks of the journey.

Why not enjoy every part of the Sanyo Route while making the Ginga trip full of the excitement of an overnight train ride?


West Express Ginga Sanyo Route

The train runs on Mondays and Fridays from Kyoto to Shimonoseki, and on Wednesdays and Saturdays from Shimonoseki to Kyoto until Aug. 9, except for some dates. One-way fare is ¥12,950 for reclining seats or couchettes. Tickets are available through JR West’s online reservation system and at JR ticket offices.


***

Japan Tourism is presented in collaboration with Ryoko Yomiuri Publication, which publishes Ryoko Yomiuri, a monthly travel magazine. If you are interested in the original Japanese version of this story, click here.  



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