- Total VC deals with disclosed funding rounds stood at 7,666 in Q1-Q3 2025 versus 7,807 in Q1-Q3 2024
- Investors prioritize quality over quantity, focusing on companies with solid fundamentals
The total number of venture capital (VC) deals with disclosed funding rounds registered a marginal decline during the first three quarters (Q1-Q3) of 2025 compared to the same period in 2024, reflecting an ongoing recalibration of investor risk appetite. VC deal volume with disclosed funding rounds fell 2% from 7,807 in Q1-Q3 2024 to 7,666 in Q1-Q3 2025. Meanwhile, the composition of deal activity highlights a reorientation within the market, with the trend between early-stage rounds (Seed and Series A) and late-stage rounds (Series B and beyond) remaining in contrast, according to GlobalData, a leading data and analytics company.
An analysis of GlobalData’s Deals Database revealed that the number of early-stage rounds contracted by 3% during Q1-Q3 2025 compared to Q1-Q3 2024, while growth and late-stage rounds demonstrated growth of 4%.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “While overall VC activity have slightly declined, the shift toward growth-stage resilience signals a maturing investment mindset that prizes demonstrable metrics. This trend suggests that while early-stage startups may be struggling to secure funding, relatively more established companies are still attracting investor interest. Investors appear to be prioritizing quality over quantity, focusing on companies with solid fundamentals and clear paths to profitability. This shift in strategy may be a response to the economic uncertainties that have characterized the global market in recent years.”
The early-stage funding rounds have experienced a downturn, dropping from 6,082 deals in Q1-Q3 2024 to 5,871 in Q1-Q3 2025. This decline underscores the challenges faced by startups seeking initial capital in a tightening economic environment. Notably, seed funding has seen a more pronounced decline of 7%, while series A funding mostly remained at the same level.
In contrast, the growth and late-stage funding rounds have demonstrated a more stable performance. The number of deals in this category increased from 1,725 in Q1-Q3 2024 to 1,795 in Q1-Q3 2025.
Bose concludes: “The overall picture is one of cautious normalization: investors are pruning early-stage deal flow while continuing to support established growth stories. And the trend is likely to continue as they recalibrate their strategies in response to economic conditions.”
Note: Historic data may change in case some deals get added to previous months because of a delay in disclosure of information in the public domain
