Key Insights – July 2025
July 2025 showcased exceptional venture capital activity with $16.66B invested across 496 companies, marking one of the strongest funding months of the year. This represents a remarkable 64% increase from May 2025’s $10.15B and demonstrates robust investor confidence in transformative technologies. The month was dominated by several mega-rounds, including Anduril Industries’ massive $2.5B defense technology funding.
Artificial Intelligence emerged as the clear winner, capturing over $5.2B in funding across 65+ companies (31% of total funding), while Aerospace and Defense sectors attracted $2.8B+.
Detailed Analysis
Market Context
Total US startup funding in July 2025 reached $16.66B across 496 companies, representing a remarkable 110.9% increase year-over-year from July 2024’s $7.9B. This exceptional performance demonstrates robust investor confidence and marks one of the strongest funding months in recent venture capital history.
Key Metrics
- Average deal size: $33.6M (+52% vs May 2025’s $22.1M)
- Median deal size: $7.0M (showing wide distribution in deal sizes)
- Largest deal: Anduril Industries at $2.5B
- Funded companies: 496 (+8.3% vs May 2025’s 458)
- AI funding dominance: 31.2% of total funding ($5.2B)
- Mega-rounds ($1B+): 3 deals totaling $5.4B
Round Stage Dynamics
Late-Stage rounds dominated funding by volume, capturing 57.4% of total capital ($9.56B) across just 46 deals, with an average deal size of $207.8M. This concentration reflects investor preference for proven companies with established revenue streams and clear paths to profitability.
Early-Stage activity remained robust with 258 deals totaling $3.0B, though at much smaller average sizes ($11.6M average, $2.6M median). The median deal size across all rounds was just $7.0M, highlighting the significant impact of mega-rounds on overall averages.
Series A and B rounds showed healthy activity with $2.07B and $2.03B respectively, indicating a balanced funding ecosystem across company stages. Series B rounds averaged $32.8M, reflecting investor confidence in scaling companies.
Industry Insights
Artificial Intelligence dominated the funding landscape with over $5.2B across 65+ companies, representing 31% of total monthly funding. Major AI deals included Thinking Machines Lab ($2.0B), Anysphere ($900M), and Applied Intuition ($600M), showcasing investor confidence in AI infrastructure, development tools, and autonomous systems.
Aerospace and Defense captured significant attention with $2.8B+ in funding, led by Anduril Industries’ record-breaking $2.5B round. This sector’s strength reflects growing investor interest in national security technologies and advanced defense capabilities.
Clean Energy maintained strong momentum with TerraPower’s $650M nuclear energy round and TAE Technologies’ $150M fusion investment, highlighting continued investor commitment to sustainable energy solutions and next-generation power technologies.
Geographic Distribution
California dominated the funding landscape, securing over $8B across major deals including Anduril Industries ($2.5B), Thinking Machines Lab ($2.0B), and Anysphere ($900M). The state’s continued leadership reflects its deep talent pool and established ecosystem for technology and AI companies.
New York emerged as a significant hub with $875M+ in funding, led by Cyera’s $540M cybersecurity round and strong fintech activity. Washington State contributed substantially through TerraPower’s $650M clean energy round, while Pennsylvania showed strength in AI healthcare with Abridge’s $300M funding.