The global venture capital market hit its second-highest annual total on record in 2025, with the year seeing $512 billion in deal value, nearly matching 2022, the current high-water mark, according to a first look at the quarterly PitchBook-NVCA Venture Monitor report released early Wednesday.

In terms of VC dealmaking as in much of the tech world, 2025 will be remembered for artificial intelligence, with AI accounting for more than half of the total deal value last year and nearly one-third of all completed venture deals worldwide.

Overall dealmaking improved compared with the prior two years, but activity remained uneven across stages. Rounds into late-stage companies led in terms of deployed capital, while early-stage investment showed signs of stabilization but did not return to previous highs.

Global VC exit value climbed to $549.2 billion in 2025, up more than $200 billion over 2024. Public listings accounted for around half of total exit value but only represented around 10% of completed exits.

High-profile initial public offerings helped lift aggregate figures, although the report notes that the number of completed IPOs declined compared with 2024, highlighting continued selectivity in public markets.

Despite strong exit figures, fundraising conditions in 2025 did not see a similar bounce. Global VC fundraising fell to $118.6 billion in 2025, nearly $100 billion less than in 2024 and the lowest level in a decade.

The number of newly closed funds also dropped to a 10-year low, coming in at 537 funds raising $66.1 billion in new commitments, way below the 1,777 new funds and $222.9 billion in commitments seen in 2022.

By region, Asia saw late-year momentum with nearly 40% of its $76.3 billion annual deal value deployed in the fourth quarter. As in the U.S. and Europe, AI maintained steady traction but at lower penetration rates and exit activity improved unevenly.

Across the Atlantic in Europe, VC deal value remained broadly flat year-over-year at €66.2 billion ($77.38 billion). The continent saw fewer but larger later-stage rounds and saw a growing reliance on AI-driven companies.

In the U.S., venture investment rebounded, with deal value reaching its second-highest annual level. Not surprisingly, the boom was led by AI companies, which captured nearly two-thirds of total capital invested.

Exit value in the U.S. nearly doubled from 2024, although PitchBook notes liquidity remains well below peak levels and continues to weigh on fundraising expectations heading into 2026.

A total of 16,707 deals were completed in the U.S. last year, up 9.6% year-over-year, and there were 1,636 exits, up 28.5% from 2024. Total exit value came in at $297.8 billion, up 92.7% year-over-year.

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