A new report published by J.P. Morgan shows that venture capital fundraising became highly concentrated in 2025, driven in large part by high interest in a relatively small number of artificial intelligence (AI) companies.
AI dominating venture investment
The H2 2025 Innovation Economy Update highlights the extent to which AI has attracted increasing investor interest over the last five years, from 21% in Q1 2020 to an all-time high of 71% for the same period in 2025. AI companies are also raising exceptionally large amounts, with the top five accounting for almost one-third of total invested capital last year.
AI deals helping to drive M&A activity
AI-related deals are cited as being among the key drivers behind the uptick seen in mergers and acquisitions (M&A) throughout 2025. AI startups are being acquired earlier and more frequently, with two reasons for this apparent trend – competitive pressures and ‘acqui-hires’ as a means to secure talent.
The report also looks at:
- The challenging fundraising environment for non-AI startups
- An emerging trend around a decline in follow-on rounds
- Investors focus on the earliest and latest entry points
- San Francisco as the epicenter of the AI investment wave
What next?
Download the full report now for statistics and further insights.
This publication contains general information only and J.P. Morgan Workplace Solutions is not, through this article, issuing any advice, be it legal, financial, tax-related, business-related, professional or other. J.P. Morgan Workplace Solutions’ Insights is not a substitute for professional advice and should not be used as such. J.P. Morgan Workplace Solutions does not assume any liability for reliance on the information provided herein.
