"US startup funding declined 15.4% in December to close out 2025, with $15.4B deployed across 521 deals. While down from November's elevated levels, December maintained healthy deal flow across all stages, led by Databricks' $4B mega-round. AI companies continued to dominate, capturing 67.6% of total funding. The US venture capital market closed 2025 with measured activity in December, as funding declined 15.4% from November's $18.2B to $15.4B across 521 deals."
"Mega-Round: Databricks raised $4B, representing 26% of monthly total AI Dominance: 262 AI companies raised $10.4B (67.6% of total funding) Deal Volume: 521 deals maintained healthy market activity Median Deal Size: $5.0M reflected broad-based funding across stages US Deal Activity by Round Type December's stage distribution followed familiar patterns, with late-stage deals capturing 56.2% of total capital despite representing less than 10% of deal count. The $8.65B in late-stage funding was driven significantly by Databricks' $4B round, which alone accounted for 26% of the entire month's venture deployment."
US startup funding declined 15.4% month-over-month in December 2025 to $15.4B deployed across 521 deals. Year-over-year funding declined 14.9% from December 2024's $18.1B, reflecting normalization after elevated late-2024 activity. Databricks closed a $4B mega-round that represented 26% of the month's capital. AI companies raised $10.4B across 262 firms, capturing 67.6% of total funding. Late-stage deals accounted for 56.2% of capital driven by $8.65B in late-stage funding. Early-stage activity included 309 deals totaling $1.54B with a $1.0M median, and the overall median deal size was $5.0M.
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