March 2025
VENTURE CAPITAL REPORT
VENTURE CAPITAL REPORT
The report analyzes the VC market in the Americas and Europe, focusing on growth- and late-stage companies. It includes statistics on deals, capital raised, valuations, funding round sizes,
and descriptions of new unicorns.
SUMMARY
Monthly Americas and Europe
VC Market Report
Apr 15, 2025
VC Market Report
Apr 15, 2025
Deal Count & Total Capital Invested
In March 2025, the number of deals concluded by VC-backed companies with a valuation of $100M or more increased by 16% compared to February (80 deals) and amounted to 93 deals; year-over-year, the number of deals decreased by 22%.
Deal count in 2024 remained moderate, below the 2021 peak, as rates remained high despite the initiated rate reduction cycle.
The increase in overall deal count was driven by increased activity in the $1B+ segment.
Deal count in 2024 remained moderate, below the 2021 peak, as rates remained high despite the initiated rate reduction cycle.
The increase in overall deal count was driven by increased activity in the $1B+ segment.
Deal structure by valuation segments, March 2025
During 2023-2024, Series B accounted for the largest share of deals, but its share is gradually declining, while the share of later stages (Series C+) is gradually increasing, which may indicate a market recovery for more mature companies.
In total, the late-stage segment accounted for 48% of the total number of deals in March 2025.
In total, the late-stage segment accounted for 48% of the total number of deals in March 2025.
Fact
Total capital invested in venture-backed companies worth over $100M in March was $11.6B,
up 64% or $4.5B from February ($7.1B) and up 58% year-over-year.
up 64% or $4.5B from February ($7.1B) and up 58% year-over-year.
In March, OpenAI announced it had closed a $40B round with a post-money valuation of $300B, making it the largest ever funding round for a private technology company. The deal was excluded from the total data for the month due to its atypically high parameters.
The dynamics of venture investment volumes in 2023-2024 reflect the influence of global macroeconomic conditions, including the effect of high interest rates; in 2024, a gradual market recovery is observed, associated with improving investor sentiment, adaptation to new financing conditions, as well as the rate-cutting cycle launched by the Federal Reserve in September.
In March 2025, the Fed kept the interest rate at 4.50% after cutting it by 0.25% (25 bps) in December 2024. In 2025, we expect the Fed to maintain its interest rate at the current level with the possibility of further downward adjustments, which could stimulate increased activity in the VC market.
The dynamics of venture investment volumes in 2023-2024 reflect the influence of global macroeconomic conditions, including the effect of high interest rates; in 2024, a gradual market recovery is observed, associated with improving investor sentiment, adaptation to new financing conditions, as well as the rate-cutting cycle launched by the Federal Reserve in September.
In March 2025, the Fed kept the interest rate at 4.50% after cutting it by 0.25% (25 bps) in December 2024. In 2025, we expect the Fed to maintain its interest rate at the current level with the possibility of further downward adjustments, which could stimulate increased activity in the VC market.
Invested capital ($B) structure by valuation segments, March 2024
Invested capital and deal count for VC companies valued at $100M+ and Fed Funds Rate, 2021-2025
- In March 2025, a total of $11.1B was raised in Series B+ rounds, with $2.4B coming from Series B, $2.2B from Series C, and $5.4B from Series E+.
- In 2024-2025, the volume of investments in the growth and late stages shows a steady increase compared to 2023.
- If the current trend continues, 2025 could be even more active for the growth and late stages, especially with the improving macroeconomic environment.
Median Round Size & Post-Money Valuation
Median round size by valuation segments, 2021-2025, $M
Early stages show stable dynamics in median investment round sizes, while later stages demonstrate high volatility due to the effect of individual large deals.
The median round size in March 2025 for companies valued at $1B+ was $160M (-29% MoM), while for the $100-250M, $250-500M and $500-$1B segments, it reached $30M (+7% MoM), $70M (+107% MoM) and $80M (-9% MoM), respectively.
The median round size in March 2025 for companies valued at $1B+ was $160M (-29% MoM), while for the $100-250M, $250-500M and $500-$1B segments, it reached $30M (+7% MoM), $70M (+107% MoM) and $80M (-9% MoM), respectively.
The trend of longer time intervals between rounds indicates that investors remain selective in their investments.
The extension of investment intervals is particularly notable for companies valued up to $500M; in March, in the $100-250M, $250-500M, and $500M-1B segments, the indicator was 25 months, 16 months, and 19 months, respectively.
At the same time, companies with valuations of $1B+ are raising money faster as investors bet on assets with higher financial strength; in March, the median time between rounds in the $1B+ segment was 17 months.
The extension of investment intervals is particularly notable for companies valued up to $500M; in March, in the $100-250M, $250-500M, and $500M-1B segments, the indicator was 25 months, 16 months, and 19 months, respectively.
At the same time, companies with valuations of $1B+ are raising money faster as investors bet on assets with higher financial strength; in March, the median time between rounds in the $1B+ segment was 17 months.
Median time between investment rounds in the 1B+ valuation segment, 2021-2025, in months
Median post-money valuation by valuation group, 2021-2025, $M
- $1B+ companies show the most significant volatility in post-money valuation; however, in 2024-2025, there is a trend toward an increase in the median valuation of unicorns ($1B+).
- In March, the median post-money valuation in the $1B+ segment amounted to $2.20B (-2% MoM), while for the $100-250M, $250-500M and $500-$1B segments, it reached $0.14B (+0% MoM), $0.39B (+28% MoM) and $0.71B (+5% MoM), respectively.
Fact
In March 2025, the median valuation step-up for the $1B+ segment was 1.6x, while for companies valued at $100-250M, $250-500M and $500-1000M, it reached 2.0x, 2.1x and 3.0x, respectively.
In March 2025, unicorns ($1B+) demonstrated a moderate median valuation step-up, which is explained by historically more restrained revaluation multiples at later stages, as well as heightened sensitivity of such companies to macro conditions; at the same time, current multiples are at a level similar to early stages, which reflects continued strong investor interest in late-stage companies.
Median valuation step-up for companies with $1B+ valuation, 2021-2025
Key statistics for Growth and Late Stage companies, March 2025
Exits & Bankruptcies
The number of VC exits reached 10 in March 2025 – 9 of them were made through M&A (acquisition of a controlling stake by a strategic investor) and another 1 through Buyout (acquisition of a controlling stake by a PE investor).
The total volume of deals associated with VC exits exceeded $49B, up 89% from the previous month.
In 2023-2024, the number of bankruptcies remained at a high level, but in the second half of 2024, the number of bankruptcies returned to a level close to 2021-2022 and in March 2025 amounted to 42 cases. Further dynamics will depend on macroeconomic conditions and availability of capital.
The total volume of deals associated with VC exits exceeded $49B, up 89% from the previous month.
In 2023-2024, the number of bankruptcies remained at a high level, but in the second half of 2024, the number of bankruptcies returned to a level close to 2021-2022 and in March 2025 amounted to 42 cases. Further dynamics will depend on macroeconomic conditions and availability of capital.
Number of bankruptcies, 2021-2025
Top-5 New Rounds Raised by Companies with $1B+ Valuation
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AnthropicAnthropic is a company focused on research and development of robust, manageable, and interpretable large-scale artificial intelligence language models.
- Industry: AI & ML, Big Data, Business/Productivity Software
- Round size: $3.5B (Series E)
- Round date: 03 Mar 2025
- Total funding: $17.25B
- Valuation: $61.50B
- Investors: Cisco Investments, Qualcomm Ventures, Jane Street, Alphabet, SV Angel
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Flock SafetyFlock Safety is a developer of camera systems designed to capture images to fight crime while protecting user privacy.
- Industry: AI & ML
- Round size: $275M (Later Stage VC)
- Round date: 13 Mar 2025
- Total funding: $957.58M
- Valuation: $7.50B
- Investors: Greenoaks Capital Partners, Kleiner Perkins, Tiger Global Management, Andreessen Horowitz
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Shield AIShield AI is a military-industrial complex company offering highly specialized AI robots for use in commercial aviation and on the battlefield.
- Industry: Robotics and Drones, AI & ML, Aerospace and Defense
- Round size: $240M (Series F)
- Round date: 06 Mar 2025
- Total funding: $1.31B
- Valuation: $5.03B
- Investors: Andreessen Horowitz, ARK Investment Management, US Innovative Technology Fund
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IslandIsland is a developer of a corporate browser that allows you to freely perform work tasks while maintaining complete security.
- Industry: Business/Productivity Software, Cybersecurity
- Round size: $250M (Series E)
- Round date: 26 Mar 2025
- Total funding: $800M
- Valuation: $4.80B
- Investors: Coatue Management, Capital One Ventures, Citi Ventures, Sequoia Capital
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Rapyd Financial NetworkRapyd Financial Network is a developer of a digital FinTech platform designed for the exchange, storage and transfer of cash.
- Industry: FinTech
- Round size: $500M (Later Stage VC)
- Round date: 13 Mar 2025
- Total funding: $2.01B
- Valuation: $4.50B
- Investors: BlackRock, Spark Capital, Coatue Management, Tiger Global Management, Stripe
Important notice: The figures presented in the reports for previous periods may be subject to subsequent backward-looking adjustments in later reports due to the delay in obtaining data on closed transactions and the possibility of their adjustments in the market intelligence systems used to extract deal data.
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