Global VC investment surges to $138 billion in Q4’25, closing out the year with the third-highest annual total on record

KPMG Private Enterprise’s Venture Pulse

• Global VC funding reaches $138.1 billion across 7,981 deals
• Americas attracts a solid $95.1 billion in VC investment in Q4’25
• Asia continues to see muted VC investment, with only $21.4 billion in Q4’25

Global venture capital investment rose from $125.6 billion in Q3’25 to $138.1 billion in Q4’25, marking a fifth consecutive strong quarter. 2025 as a whole attracted the third-highest annual level of global VC investment, according to Venture Pulse from KPMG Private Enterprise. While deal volume remained well below historic norms, average deal sizes increased as investors focused on fewer, larger opportunities. Q4’25 saw twelve $1 billion+ megadeals in Q4’25—eleven of which occurred in the United States.

The Americas led global VC investment during the fourth quarter with $95.1 billion, driven primarily by the US ($91.15 billion). Asia followed with $21.4 billion, narrowly ahead of Europe at $21.1 billion. For the year, the US posted its second-highest total of VC investment on record, while Europe delivered a solid performance and Asia fell to its lowest level of VC investment in a decade. 

Q4'25 - Key Highlights

• Global VC investment increased from $125.6 billion across 9,434 deals in Q3’25 to $138.1 billion across 7,981 deals in Q4’25.
• VC investment in the Americas climbed sharply from $82.5 billion in Q3’25 to $95.1 billion in Q4’25, driven primarily by the United States, where investment rose from $78.75 billion to $91.15 billion over the same period.
• Europe delivered a solid quarter with $21.1 billion invested, though this was well below its 13-quarter peak reached in Q3’25.
• Q4’25 was Asia’s strongest quarter of the year, with $21.4 billion of VC investment, but this level remains very low compared to historical norms.
• Corporate VC-participating investment jumped from $61.6 billion in Q3’25 to $77.0 billion in Q4’25. The United States accounted for the largest share at $52.1 billion, marking its fifth consecutive strong quarter of CVC activity. Europe remained steady at $9.9 billion in Q4’25, while the most pronounced increase came from Asia, where CVC investment surged from $11.1 billion in Q3’25 to $13.3 billion in Q4’25.
• Global exit value grew from $153.5 billion in Q3’25 to $178.0 billion in Q4’25. Regionally, US exits swelled from $75.0 billion to $93.6 billion quarter over quarter, while Asia saw healthy growth from $41.0 billion to $64.0 billion. Europe experienced a sharp pullback, with exit value falling from $27.6 billion in Q3’25 to $18.4 billion in Q4’25.
• Global VC fundraising remained exceptionally weak, totaling just $118.4 billion at the end of the year.

AI remained the dominant sector for VC investment globally in 2025, attracting record levels of funding by a wide margin, a trend that continued into Q4’25. During the quarter, eight US-based AI companies raised $1 billion or more, including Anthropic, Project Prometheus, Databricks, Anysphere, Reflection AI, Polymarket, Lambda, and Crusoe.

AI investment was also broad-based globally, though at smaller deal sizes. Notable raises included Australia’s Firmus Technologies ($541 million), Didi Autonomous Driving ($281 million), and Japan’s Mujin ($235 million), as well as Europe-based rounds for France’s Brevo ($578 million), Germany’s Black Forest Labs ($300 million), and the UK’s Synthesia ($200 million).

The breadth of AI investment underscores the rapid expansion of the sector, while shifting investment patterns reflect increasing selectivity. VC investors are moving away from broad experimentation and concentrating capital on proven AI leaders with defensible business models, particularly in areas such as AI infrastructure and data centers, small language models, robotics, and specialized vertical applications.

Global exit value increased, rising from $153.5 billion in Q3’25 to a 16 quarter high of $178 billion in Q4’25 despite IPO headwinds related to the US government shutdown. Overall, 2025 was a very strong year for exits globally, with total exit value reaching $549.2 billion - the third -highest level of the past decade — supported by renewed IPO activity in the United States and sustained M&A activity worldwide.

On a regional basis, exit values increased year-over-year across all major markets in 2025. In the Americas, exit value rose sharply from $162.9 billion in 2024 to $313.7 billion in 2025, while Europe saw a modest increase from $72.1 billion to $79.5 billion. Asia also recorded a solid gain, with exit value climbing from $100.5 billion to $154.1 billion, supported by IPO activity in both Hong Kong and India.

VC investment in the Americas surged from $82.5 billion in Q3’25 to $95.1 billion in Q4’25, with the United States accounting for $91.15 billion of the total, an amount driven overwhelmingly by large AI-focused financings. Canada attracted approximately $2 billion in VC investment during the quarter, while Brazil drew $545 million.

For 2025 overall, venture capital investment across the Americas reached its second-highest level on record, reflecting growing investor comfort operating amid prolonged uncertainty. Capital deployment remained highly concentrated in the US AI ecosystem, with large, late-stage rounds dominating activity, while investment outside AI continued to favor proven, late-stage companies with strong fundamentals.

VC investment in Europe rose marginally from $20.6 billion in Q3’25 to $21.1 billion in Q4’25, though overall deal volume remained soft, falling from 2,005 to 1,652 quarter-over-quarter. The AI sector was incredibly robust in Europe this quarter, led by a $578 million raise by France-based Brevo, a $300 million raise by Germany-based Black Forest Labs, and a $200 million raise by UK based Synthesia. Fintech also attracted robust investment in Q4’25, with raises by UK-based Revolut ($3 billion). Quantum computing also saw growing interest in the region, evidenced by a $233 million raise by Germany-based Quantum Systems.

At a jurisdictional level, the UK attracted the largest share of VC funding in the region during the quarter ($6.8 billion), followed by France ($2.3 billion), the Nordics region ($3.2 billion), and Germany ($2.4 billion).

VC investment in Asia edged up slightly from $21.2 billion across 3,132 deals in Q3’25 to $21.4 billion across 2,474 deals in Q4’25. Despite the modest increase in capital deployed, both investment levels and deal volume remained well below historical norms, reflecting the ongoing impact of geopolitical uncertainty and trade tensions.

China continued to attract the largest share of VC investment in the region during Q4’25, drawing $10.8 billion, driven largely by major financings in autonomous driving, including an $867 million raise by DeepBlue Auto and a $600 million round by Neolix Technologies. Elsewhere in the region, India recorded $4.2 billion in VC investment during the quarter, while Japan attracted $1.9 billion, marking one of its strongest quarter on record, and Australia saw $1.0 billion. 

Global VC investment is expected to remain solid heading into Q1’26, supported by improving macro conditions and growing investor confidence. AI is poised to remain a key growth driver globally, alongside rising interest in defense technology, quantum computing, and other applied technologies. Exit conditions, particularly IPO momentum in markets such as Hong Kong, India, and the US, will be a critical factor shaping deal volume and investor sentiment through 2026, with gradual improvement expected over the coming quarters.

In the United States, a more favorable regulatory environment, the prospect of further interest rate cuts, and gradually improving IPO and M&A conditions are expected to sustain strong venture activity, with AI continuing to anchor investment flows. Canada is expected to see relatively stable VC activity early in the year, with potential upside later in 2026 as exit markets reopen. Across Latin America, investors are likely to remain selective, favoring fewer, larger investments in more established companies.

In Europe and Asia, investors are expected to remain disciplined, concentrating capital in high-quality opportunities with clear fundamentals and scalable business models. 

Brian O’Neill,
Global Media Relations, KPMG International

T: +44 7823 668 689
E: Brian.ONeill@kpmg.co.uk

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