In Q1 2025, global startup funding totaled $113 billion, marking the strongest quarter since Q2 2022, largely driven by a $40 billion investment in OpenAI, which now values the company at $300 billion. This single round accounted for over half of the U.S. venture funding and a third of global funding, leading to a 17% increase from the previous quarter and a 54% rise compared to a year earlier. The AI sector dominated funding, receiving $59.6 billion, which was 53% of the total. Late-stage funding also saw significant growth, reaching $81 billion, up 30% from the last quarter, while early-stage funding slightly decreased to $24 billion. Acquisitions in the startup sector were vigorous, with M&A activity reaching $71 billion, the highest since 2021, highlighting ongoing investment interest despite a slower IPO market for tech companies. The overall venture landscape continues to evolve, particularly in AI, as valuations rise and funding dynamics shift toward key players like OpenAI.

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