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Why Did Global Venture Funding Plummet in April Despite AI Growth


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Global venture funding declined to $23 billion in April 2025, down from $68 billion in March. This decline marks one of the slowest months recently, following a record $40 billion investment in a major company in March. The largest deal in April involved a $2 billion investment in an AI research lab, which increased its valuation by $27 billion over seven months. Artificial Intelligence led startup funding with $7 billion, representing 30% of total global funding. Healthcare and biotech raised $4.1 billion, while financial services secured $3.8 billion. U.S.-based startups attracted $14 billion, accounting for 62% of global funding, up from 56% in 2024. China raised $1.7 billion, and the UK and India both secured just over $800 million. Key investors included Insight Partners, Accel, Andreessen Horowitz, and Khosla Ventures. Funding stages allocated 10% to seed, 37% to early-stage, and 53% to late-stage financing. Ongoing market uncertainty, influenced by economic factors, contributed to the decline in funding, with investors remaining cautious moving into the second quarter. Data is current as of May 2, 2025, and reported funding amounts are in U.S. dollars.

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Web3 Wavefronts - Digestible News on Crypto, DeFi and AIBy theWeb3.news