Q2 2025 Venture Surge: AI & Fintech Dominate the Deal Flow

Venture Funding Surges in Q2 2025 as AI and Fintech Take the Lead

Venture capital activity remained strong in Q2 2025, with global funding reaching US$94.6 billion, according to CB Insights. This marks the third consecutive quarter above the US$90 billion mark, continuing the rebound that began after the downturn in 2023 and early 2024.

Total equity funding in the first half of 2025 now stands at US$219.1 billion, putting the year on track to surpass both 2023 (US$266.7B) and 2024 (US$286.9B).

Despite the robust funding, deal volume dipped 9% from the previous quarter, down to 6,028 deals — the lowest since Q4 2016. However, average deal sizes surged, reaching US$25.5 million (up from US$14.9 million in 2024). The median deal size also increased to US$3.5 million, from US$2.8 million a year ago.

AI Captures 50% of All VC Dollars

Artificial intelligence continues to dominate, accounting for US$47.3 billion (50%) of Q2 venture funding and 1,403 deals (23%). AI rounds were notably larger, with a median deal size of US$4.6 million.

Seven of the ten largest deals in Q2 were AI-related, including:

• Scale AI: Raised US$14.3B from Meta for a 49% stake

• xAI (Elon Musk): Secured US$10B (US$5B debt + US$5B equity)

• Anduril: Raised US$2.5B, now valued at US$30.5B

• Thinking Machines Lab: Raised US$2B at a US$12B valuation

Fintech: Still the #2 Sector by Volume

Fintech held strong in Q2, attracting US$10.5 billion across 804 deals, making up 11% of funding and 13% of all deals. B2B fintech was especially dominant, accounting for:

• 60% of top equity deals in payments

• 50% of top equity deals in banking

Major B2B fintech rounds included:

• Ramp: US$200M Series D at US$16B valuation

• Dojo: US$190M private equity round from Vitruvian

• Airwallex: US$150M Series F

Other major deals:

• Plaid: US$575M (largest VC round in Q2)

• Rippling: US$450M Series G

• Addepar: US$230M Series G

Stablecoin Momentum Builds Post-GENIUS Act

Stablecoin funding is expected to hit US$10.2 billion in 2025 — a 10x increase from 2024. Key drivers include regulatory clarity following the GENIUS Act, signed into law on July 18 by President Trump.

Major stablecoin-related deals:

• Avalon Labs: US$2B credit line

• Binance: US$2B investment from Abu Dhabi’s MGX

• Flowdesk: US$100M credit facility

Big tech and finance players — including Walmart, Expedia, and a potential consortium of JP Morgan, BofA, Citi, and Wells Fargo — are exploring their own stablecoin initiatives to streamline payments and reduce costs.