Significant concentration of venture capital in artificial intelligence (AI) startups

New data from PitchBook, reported by TechCrunch, reveals a significant concentration of venture capital in artificial intelligence (AI) startups, creating a challenging fundraising environment for other sectors. Projections indicate that 2025 will be the first year in which AI-focused companies secure more than half of all venture capital funding. To date, venture capitalists have invested $192.7 billion globally in AI, representing over half of the total $366.8 billion invested across all startups. This trend intensified in the most recent quarter, with AI companies accounting for 62.7% of U.S. venture investments and 53.2% globally. This capital is largely directed towards established AI players, exemplified by Anthropic's $13 billion Series F funding round in September. The intense focus on AI is impacting the broader startup ecosystem, with the number of startups and venture funds successfully raising capital falling to multi-year lows. PitchBook data indicates only 823 venture funds have been raised globally in 2025, a sharp decline from 4,430 funds in 2022. According to Kyle Sanford, PitchBook’s director of research, the market is "bifurcated," with success dependent on AI focus and firm size. In a statement to Bloomberg, Sanford noted, "you’re in AI, or you’re not" and "you’re a big firm, or you’re not," highlighting the defining factors in the current venture capital landscape.