57.9% of global venture capital went to AI and machine learning startups in the first quarter

Artificial intelligence (AI) startups accounted for the majority of venture capital funding worldwide during the first quarter of this year.
According to a new report from Pitchbook, 57.9% of global venture capital funding was in the red during the first quarter.
This is a significant increase from the 28% of venture capital allocated to AI startups in the first quarter of 2024.
AI startups will raise a total of $73 billion in the first quarter of 2025, more than half of the total AI deal value from last year.
This was the $40 billion investment round led by SoftBank that OpenAI completed on March 31. Investment in the AI field is more concentrated in North America, and the North American base is expected to grow at a CAGR of 1.2%.
70% of venture capital has gone into AI startups, and investors still have FOMO issues with AI, according to PitchBook.
Maria Palma of Freestyle Capital
"The fear of who will be the market winners is greater than ever," said General Partner Palma.
"The rate of change in the technology space is just too fast to slow down," explained Nnamdi, co-founder and managing partner at 645 Ventures.
"Extreme situations are emerging that will ultimately produce many losers," Okike warned.
Meanwhile, cryptocurrency and blockchain startups generated $4.8 billion in the first quarter.
Nearly half of this, or $2 billion, was invested in Binance by Abu Dhabi investment firm MGX. This is more than four times the $1.1 billion invested in the fourth quarter of 2024.
This made it the largest quarter for crypto venture capital deal volume since Q3 2022. A friendlier regulatory environment in the U.S. has led to an upswing in crypto venture capital.
The city seems to be thriving again.