AI continues to be the standout in venture dealmaking, with Q1 2025 extending the sector’s winning streak. AI companies raised more capital and achieved significantly higher pre-money valuations than their non-AI counterparts, outperforming by up to 150% in some sectors. At the early stage, nearly 30% of Seed and Series A deals involved AI startups, a jump from just 15% in 2021. 

This enthusiasm extends into growth rounds, where AI companies pulled in more than 60% of all capital deployed at Series D and beyond. But mega deals—those over $100 million—are becoming less frequent. While AI still leads that category, Q1 data shows a decrease compared to early 2024. 

Looking ahead, investor scrutiny around AI business models is increasing. In Q2, we may see more selective investing, with capital concentrating around companies that offer strong IP, clear use cases, and traction in enterprise markets. 

Get the full AI outlook in the Venture Beacon Q1 2025 report.

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