"With venture capital pouring into artificial intelligence, retail startups are struggling to compete for funding. PitchBook has tracked $396 million worth of VC deals in retail through December 19 of this year, down from a recent peak of $7.6 billion in 2021. In the age of AI, new companies are under more pressure to prove their value to VCs. Founders are saying that the enormous fundraising seen during the pandemic has subsided in 2025."
"Karl Bracken, founder and CEO of venture capital firm Ocampo Capital, discussed the state of the VC landscape in relation to retail on the "Omni Talk Retail" podcast in 2024. "We're coming off of, probably, the toughest time in the past decade for companies looking to raise funds," Bracken said. "It's really tough." In 2025, at least 11 retail startups still managed to raise $2 million or more in new funding, according to PitchBook."
"Retail startups have raised over $390 million in 2025, led by Gopuff's $250 million round. Gopuff is a service that delivers convenience-store items, such as snacks, household essentials, alcohol, and more, to customers. Yakir Gola and Rafael Ilishayev cofounded the company in 2013 while they were students at Drexel University. In November, Gopuff said it raised $250 million in a funding round led"
Venture capital interest has shifted toward artificial intelligence, making funding harder for retail startups. PitchBook recorded about $396 million in retail VC deals through December 19, 2025, down sharply from a $7.6 billion peak in 2021. Gopuff led retail fundraising with a $250 million round. At least 11 retail startups raised $2 million or more in 2025, including online marketplaces and brick-and-mortar stores. Retail startups in 2025 span instant delivery, pet health, AI devices, cannabis retail, and luxury goods. Founders report greater pressure to demonstrate clear value to investors compared with pandemic-era fundraising.
Read at Business Insider
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