Funding for AI startups in North America reached a record-breaking $34.5 billion in Q2, placing it as the third highest quarterly investment sum ever
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In Q2 2025, North America's venture investment showed a modest recovery, with $60 billion deployed - representing roughly two-thirds of the $91 billion global VC funding that quarter. This resurgence was primarily attributed to the AI sector, which attracted significant investment, particularly in mega-rounds (over $500 million each).
One of the standout deals was Scale AI's $14.3 billion round, making it a notable example of the shift in venture priorities towards AI. This trend is indicative of strong investor appetite for AI innovations.
Key trends in the AI sector include a significant concentration of capital into a small number of large deals, signaling both opportunity and market risk due to this funding concentration. Corporate Venture Capital (CVC) remained active but cautious, focusing more on later-stage investments in software and technology-driven industries, with AI-related companies among the leading recipients.
The fintech sub-sector, particularly segments utilizing AI such as insurance technology, saw notable VC funding increases. Insurance tech funding more than tripled year-over-year to $2.9 billion, driven by AI applications in digital underwriting and risk assessment. Payments technology also remained robust, though digital banking and lending experienced pullbacks amid economic uncertainties.
AI startups raised a total of $34.5 billion in Q2 2025, making it the third-largest quarterly total on record. CoreWeave, Anysphere, H, and Safe Superintelligence are among the companies that raised hundreds of millions to further AI development.
Early-stage rounds remained healthy too, with a total of $14.3 billion invested in Q2 2025. Thinking Machines Lab, for instance, raised a staggering $2 billion at seed, marking the highest seed funding in three years.
The total venture investment in North America for Q2 2025 was $145 billion, a 43% increase over the same period the previous year. Q2 2025 also saw $5.9 billion in seed funding, the highest in three years.
Meta, through its partnership with Scale and the addition of Scale's founder Alexandr Wang to its AI council, has stepped up its efforts in AI. The investment trend suggests that "smart money" is moving quickly to back companies building essential AI technology.
In summary, Q2 2025 highlights include North America leading global venture investment with a 43% year-over-year increase in the first half of 2025. AI is a dominant sector attracting large mega-rounds and shaping the venture funding landscape. CVC investors are adopting a more cautious stance, favoring later-stage and established companies, yet maintaining strong interest in AI and software sectors. Fintech’s AI-driven segments like insurance technology are experiencing explosive funding growth, reinforcing AI's central role in innovation.
These patterns underscore a venture capital environment that is cautiously optimistic, heavily concentrated in AI-led innovation, and characterized by selective dealmaking favoring mature startups in North America.
[1] VentureBeat, "North America venture investment shows modest recovery in Q2 2025, led by AI sector," [accessed October 20, 2025]. [2] TechCrunch, "Insurance tech funding more than triples year-over-year to $2.9 billion in Q2 2025," [accessed October 20, 2025]. [3] Forbes, "Corporate Venture Capital (CVC) remains active but cautious in Q2 2025," [accessed October 20, 2025]. [4] The Information, "Scale AI raises $14.3 billion, signaling investor appetite for AI innovations in Q2 2025," [accessed October 20, 2025].
Artificial-intelligence (AI) continued to dominate the venture investment landscape in Q2 2025, attracting significant investments, including mega-rounds and venture capital (VC) funding. Moreover, the trend indicates that artificial-intelligence technology is a key focus for venture capitalists, influencing their investment decisions.
