According to PitchBook’s latest report, AI startups in the first quarter of 2025 captured the largest share of global venture capital funding, demonstrating that investor enthusiasm for the AI sector remains undiminished.
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2025 Q1: The Main Stage for AI
Cryptocurrency Venture Capital Funding Slightly Rebounds
PitchBook’s report released on April 17 indicates that a staggering 57.9% of global venture capital funding in the first quarter flowed to AI and machine learning startups. In contrast, only 28% of funding was allocated to this sector in the first quarter of 2024, marking an astonishing growth.
The report highlights that the concentration of funding is particularly pronounced in North America, where 70% of venture capital is directed towards AI startups.
In the first quarter, the global AI sector raised a total of $73 billion, exceeding half of last year’s total AI investment. However, over half of this funding came from a massive fundraising round by OpenAI, which completed a $40 billion round led by SoftBank on March 31. Other significant fundraising cases include AI company Anthropic, which completed a $3.5 billion Series E round in March.
Maria Palma, a partner at Freestyle Capital, noted: “The FOMO among investors is stronger than ever. The pace of technological change is almost overwhelming, which is why you don’t see a slowdown in investment.”
However, Nnamdi Okike, founder of 645 Ventures, warned about the current phenomenon, stating that extreme market conditions are unfolding, which means there will ultimately be many losers. He added: “Many venture funds now operate under the mindset of ‘it will only go up,’ and this kind of thinking is often a precursor to failure, as it indicates you have started to detach from reality.”
Cryptocurrency Venture Capital Funding Slightly Rebounds
Compared to AI, cryptocurrency and blockchain startups raised only about $4.8 billion in the first quarter, according to CryptoRank data, with approximately $2 billion coming from Abu Dhabi investment firm MGX’s investment in Binance.
Although the scale is far less than that of the AI sector, this still represents more than four times the total amount raised in Q4 2024 (only $1.1 billion), marking a quarterly high since Q3 2022.
With the U.S. regulatory environment becoming more favorable, the cryptocurrency venture capital space is gradually warming up. For example, Galaxy Ventures, led by Galaxy Digital founder Mike Novogratz, is reportedly on track to exceed its original fundraising target of $150 million, potentially reaching $180 million, with the fund expected to close by the end of June.