Q2’25 Venture Pulse Report — Global trends

The VC market globally continued to experience significant headwinds in Q2’25. The US’s Liberation Day tariff announcements on April 2, 2025 were particularly impactful, deepening concerns about global trade, supply chains, and industries highly exposed to tariff risks. While VC investors showed increasing caution in the face of these headwinds, they also showed keen persistence and a willingness to invest in companies in critical sectors like AI and in companies less exposed to tariff and trade risks.

AI continued to power a large wave of VC investments globally in Q2’25. The US attracted the largest deals in the space, including a $14.3 billion raise by Scale AI, a $2.5 billion raise by AI-powered defencetech Anduril Industries, $2 billion raise by AI development company Safe Superintelligence, a $2 billion seed round by Thinking Machines Lab, and a $900 million raise by Anysphere — the startup behind the Cursor coding assistant.¹

In Europe, AI-focused defencetech companies raised significant rounds, including Germany-based Helsing ($683 million), Portugal-based Tekever ($500 million) and Germany-based Quantum Systems ($177 million). In Asia, China’s autonomous vehicles space continued to attract sizeable investments, including a $300 million raise by autonomous logistics vehicles firm Zelos Tech ($300 million) and a $178 million raise by mobility platform and smart mobility and robotaxi firm Saic Mobility.

During the quarter, VC investors across regions showed increasing interest in companies developing solutions for specific verticals — such as defence, health and biotech, legal services, and accounting services — particularly companies with robust plans and a roadmap that considers both current and future applications.

Heading into Q3’25, VC investment globally is expected to remain relatively subdued as VC investors continue to be cautious given uncertainties related to US tariff policies. Changes proposed in the new US tax bill could also drive a fresh wave of uncertainty over the next three-to-six months, particularly for global companies; should it be ratified, investors and startups will need to evaluate potential implications and incorporate them into their operations and deal-making processes.

AI is expected to remain a very hot sector of VC investment, with an increasing range of vertical solutions attracting attention. Defencetech, healthtech and fintech are also well positioned to see steady levels of investment in Q3’25, while sectors more susceptible to evolving US tariff policies could see VC investors holding back until those policies are stabilised.