In Q1 2025, global startup funding reached $113 billion, marking the strongest quarter since Q2 2022, largely driven by a single $40 billion investment in OpenAI, which is now valued at $300 billion. This funding round alone accounted for more than half of U.S. venture funding and a third of global funding. AI dominated the funding landscape, receiving over half of the total investment for the quarter. U.S.-based companies received $80 billion, with Bay Area companies obtaining $55 billion. Additionally, Q1 was notable for startup mergers and acquisitions, totaling $71 billion, the highest since 2021. Among these, OpenAI's funding was particularly significant, pushing its accumulated funding to $57.6 billion. While late-stage funding surged to $81 billion, early-stage funding slightly declined. Investment opportunities in AI continue to shape the venture capital environment, indicating a focused concentration of resources in a few key sectors and companies.

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