In the first quarter of the year, global venture capital investment reached $126.3B, the highest in 11 quarters, according to the KPMG Q1’25 Venture Pulse Report. The main driver is artificial intelligence, particularly the historic $40B funding obtained by OpenAI. At the same time, the number of deals decreased to 7,551, the lowest level in recent years.
US: Accounts for 72% of the total volume of $91.5B, the highest quarterly result since 2021. However, even in the US the number of deals is falling, down to only 3,003 per quarter.
Europe: EU startups raised $18B – a stable level, despite the lowest number of deals in nine years (1,883).
Ukraine: Venture funding is limited due to high military risk. However, instability creates a unique window of opportunity.
“Ukrainian startups are capable of creating critical solutions in the fields of defense, cybersecurity, medicine and logistics. This requires an AI development strategy, active participation by the state in stimulating investment, and support of international partners,” KPMG in Ukraine says.
Activity is expected to remain subdued outside the AI sphere in the second quarter. Investors are wary of geopolitical risks, trade barriers, and uncertainty in the IPO market. At the same time, AI, defense technologies, industrial solutions, and cybersecurity remain in focus.