State of the Venture Capital Industry

TrueBridge

Research

19 Pages

TrueBridge Capital argues 2025 marked a real step toward normalization in venture, but with capital flowing far more selectively than before. The market nearly returned to peak funding levels, yet it did so through fewer deals, heavier AI concentration, and a reopening in exits that still looked narrow rather than broad.

Key Takeaways

Capital Concentrated Sharply: U.S. firms raised $66.1 billion across 537 funds in 2025, while funds above $500 million represented more than half of all dry powder.
AI Took The Lead: Venture deployed $339.4 billion in 2025, but 65% to 65.6% of deal value went to AI and AI/ML companies, showing how narrow leadership became.
Exits Improved Selectively: Exit value reached $297.6 billion across about 1,635 transactions, and 48 venture backed companies went public, but the IPO market was still only selectively open.
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