Global Startup Funding Slows in April Despite Continued AI Investment
Startup funding totaled $23 billion in April 2025, holding steady year over year but falling sharply from March’s surge.
Global startup funding hit $23 billion in April 2025 — unchanged from April last year but down significantly from March’s $68 billion. This made April one of the slowest months for startup investment in the past year.
The drop followed a record-setting March, which saw a $40 billion investment in OpenAI, the largest private funding deal to date. That massive deal had temporarily boosted global totals.
April’s largest funding round also went to an AI company. Safe Superintelligence, an AI research lab co-founded by former OpenAI chief scientist Ilya Sutskever, raised $2 billion at a $32 billion valuation. The company has gained $27 billion in value in just seven months.
AI Leads Funding, Followed by Healthcare and Fintech
Artificial intelligence continued to attract the most investor interest. AI startups raised about $7 billion in April — roughly 30% of global funding for the month.
Healthcare and biotech followed with $4.1 billion, while financial services startups secured $3.8 billion. Other sectors that saw strong funding rounds included security, energy, transportation, solar, and space technology.
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U.S. Startups Gained the Most Funding
Startups based in the United States attracted $14 billion in funding, making up about 62% of the global total — a rise from the 56% share seen in 2024.
In comparison, China-based startups raised $1.7 billion. The UK and India were close behind, each with just over $800 million in funding during April.
Top Investors and Funding Stages
Several major investment firms remained active in April. Insight Partners, Accel, Andreessen Horowitz, and Khosla Ventures led many post-seed deals. Large late-stage rounds were driven by investors such as Greenoaks, Franklin Templeton, General Atlantic, and Accel.
Of the total funding in April:
- 10% went to seed-stage companies,
- 37% went to early-stage startups,
- 53% supported late-stage ventures.
Funding Faces Headwinds
Despite strong interest in sectors like AI, overall funding reflects ongoing caution in the market. Concerns about economic instability, rising tariffs, and global trade tensions are making investors more careful.
Without another mega-deal like OpenAI’s in March, April’s slowdown may be a sign of more sluggish months ahead as the second quarter unfolds.