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The US venture capital (VC) landscape, in the first quarter of 2025, witnessed a strategic pivot among investors towards high-quality opportunities, according to GlobalData, a leading data and analytics company.

In Q1 2025, the US recorded substantial growth in deal value, which surged by more than 50% to $37.6 billion. However, VC deal volume recorded a modest decrease of around 3.5% year-on-year (Y-o-Y).

Aurojyoti Bose, Lead Analyst at GlobalData, comments: “This divergence suggests a strategic shift among investors, who appear to be concentrating their resources on fewer, but more promising, ventures. The trend indicates a scenario, where quality is prioritised over quantity, reflecting a more discerning investment approach.”

Globally, VC funding has experienced a notable contraction in terms of volume during Q1 2025, with the total number of VC deals decreasing by about 8% Y-o-Y. Meanwhile, the US showed relative resilience compared to its counterparts.

An analysis of GlobalData’s Deals Database revealed that the US’ share of the global VC funding value increased from 43% in Q1 2024 to 58% in Q1 2025. Meanwhile, the US also accounted for an approximately 30% share of the total number of VC deals announced globally in Q1 2025.