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Annual Report • Published January 15, 2025

2025 Venture Capital Funding Report

Comprehensive analysis of venture capital funding trends, deal volumes, valuations, and industry predictions based on $182.4B in funding data from 500+ verified VC funds.

Executive Summary

The venture capital landscape in 2024 demonstrated remarkable resilience and evolution, with total funding reaching $182.4B across 4,847 deals. Despite macroeconomic headwinds, AI-focused startups continued to attract significant investment, representing 15.7% of total funding volume.

Key trends include the maturation of seed-stage funding, with median rounds increasing to $3.2M, and a geographic diversification away from traditional Bay Area dominance. Series A success rates declined slightly to 18.2%, indicating increased selectivity among investors.

Looking ahead to 2025, we predict continued growth in AI infrastructure investments, stabilization of Series A valuations, and increased focus on sustainable business models over pure growth metrics.

Key Findings

$182.4B
Total VC funding analyzed across all stages in 2024
+12.3% vs 2023
4,847
Total funding rounds tracked across all stages
+8.7% vs 2023
$45M
Median Series A round size in 2024
+18.4% vs 2023
18.2%
Success rate for startups raising Series A after seed
-2.1pp vs 2023

Funding by Industry

AI/Machine Learning
$28.7B(15.7%)
687 deals
Fintech
$24.1B(13.2%)
523 deals
Healthcare/Biotech
$21.5B(11.8%)
445 deals
SaaS/Enterprise
$19.3B(10.6%)
612 deals
Climate Tech
$15.8B(8.7%)
298 deals
E-commerce/Retail
$12.4B(6.8%)
356 deals
Cybersecurity
$11.2B(6.1%)
234 deals
Other
$49.4B(27.1%)
1692 deals

Funding by Stage

Pre-Seed

Median Size
$750K
Total Funding
$8.2B
Deal Count
2341
Smaller rounds, more selective investors

Seed

Median Size
$3.2M
Total Funding
$24.7B
Deal Count
1456
Larger seed rounds, extended runway focus

Series A

Median Size
$15.8M
Total Funding
$64.3B
Deal Count
872
Higher valuations, longer time to raise

Series B+

Median Size
$42.1M
Total Funding
$85.2B
Deal Count
178
Mega-rounds driving averages up

Geographic Distribution

California
$89.2B(48.9%)
Key hubs: San Francisco, Los Angeles, San Diego
New York
$28.7B(15.7%)
Key hubs: New York City, Rochester
Massachusetts
$18.4B(10.1%)
Key hubs: Boston, Cambridge
Texas
$12.1B(6.6%)
Key hubs: Austin, Dallas, Houston
Washington
$9.8B(5.4%)
Key hubs: Seattle, Bellevue
Other States
$24.2B(13.3%)
Key hubs: Various

2025 Predictions

AI Investment

High Confidence

AI funding will reach $45B+ in 2025, driven by enterprise adoption and infrastructure needs.

Valuation Reset

Medium Confidence

Series A valuations will stabilize around $50-80M as market matures.

Geographic Shift

Medium Confidence

Non-Bay Area markets will capture 60%+ of total funding for first time.

Stage Evolution

High Confidence

Pre-seed rounds will average $1M+ as early-stage funding increases.

Methodology & Data Sources

Data Collection

  • • SEC Form D filings (real-time monitoring)
  • • NASAA Electronic Filing Depository
  • • Direct VC fund reporting
  • • Public company acquisition data
  • • Startup exit databases
  • • Industry publication analysis

Analysis Methods

  • • Statistical significance testing (p <0.05)
  • • Outlier detection and normalization
  • • Industry classification via NAICS codes
  • • Geographic clustering analysis
  • • Time-series trend analysis
  • • Cross-validation with 3+ sources

Sample Size:4,847 funding rounds from 500+ verified VC funds.Time Period: January 1, 2024 - December 31, 2024.Last Updated: January 10, 2025.

Frequently Asked Questions

How do you verify funding data?

All funding rounds are cross-referenced with SEC filings, state regulatory databases, and direct confirmation from participating funds when possible.

What constitutes a "verified" VC fund?

Funds must have filed regulatory documents (Form D or state filings), have an active website, and demonstrate consistent investment activity to be included in our database.

How often is this data updated?

Our database is updated daily with new SEC filings. This annual report represents a comprehensive analysis of the full calendar year's data.

Can I cite this research?

Yes, this research is freely citable. Please use: "Free Startup Funding Research Team. '2025 Venture Capital Funding Report.' Free Startup Funding Database, January 2025."

Citation Information

Free Startup Funding Research Team. "2025 Venture Capital Funding Report." Free Startup Funding Database, January 15, 2025. https://freestartupfunding.com/research/2025-vc-funding-report

This research is published under Creative Commons Attribution 4.0 International License. You are free to share and adapt this material for any purpose, including commercial use, with appropriate attribution.

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