Figma IPO Sparks Market Optimism as Startup Funding Holds Steady
Global Venture Funding Totals $29.7B in July, Driven by AI and Figma’s Strong Market Debut
Global startup funding reached $29.7 billion in July 2025, staying flat compared to July 2024 but down from $43 billion in June.
Despite the month-over-month decline, investor sentiment remained positive, thanks largely to the Figma IPO, which exceeded expectations and renewed interest in public market exits. The success of the IPO is raising hopes for other high-growth startups waiting to go public.
Breakdown of Startup Funding by Stage
- Seed-stage startups received 10% of total funding
- Early-stage deals captured 30%
- Late-stage funding made up 60%
Large funding rounds dominated the month, especially those over $200 million, mainly backed by corporate investors and private equity firms.
AI Remains the Top Investment Sector
AI continued to lead in funding, securing $11 billion, or 37% of all investment in July. The biggest round of the month went to Elon Musk’s xAI, with a massive $5 billion deal led by SpaceX. It was the third-largest round of the year, behind OpenAI’s $40 billion in March and Meta’s $14.3 billion investment in Scale AI in June.
In total, startup rounds of $200 million or more accounted for $11.4 billion, representing 38% of all private investment. Most of these were led by corporate and alternative investors. Only OpenEvidence and Lovable had rounds of this size led solely by venture capital firms.
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U.S. and AI Continue to Lead Global Funding
The U.S. led globally, with startups raising $17 billion, or 58% of total funding. AI was followed by:
- Healthcare and biotech: $5.7 billion
- Financial services: $4.6 billion (double compared to last year)
Figma IPO Marks a Turning Point for Tech Exits
The Figma IPO was the standout event of the month. Priced at $33 per share, the stock more than tripled on its first day of trading. This made the San Francisco-based design software company one of the most successful tech IPOs since 2022.
Founded over a decade ago, Figma scaled alongside broader shifts in technology and continued to grow through the rise of AI. Its public debut is expected to encourage other private tech companies — especially profitable ones with strong revenue — to consider IPOs.
The IPO also brought major returns to early investors like Index Ventures, Greylock, Kleiner Perkins, and Sequoia Capital, each gaining billions in exit value.
Unicorns Still Waiting to Exit
Despite the excitement around the Figma IPO, many startups remain private. More than 1,600 unicorns, valued at over $1 trillion, are still waiting for favorable market conditions to go public or be acquired.