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Artificial intelligence (AI) has firmly cemented its position as the darling of venture capital (VC) in 2025, capturing a staggering 57.9% of global VC investments in the first quarter, according to new data from Pitchbook. This marks a dramatic leap from Q1 2024, when just 28% of VC dollars were funneled into AI and machine learning startups.
Pitchbook’s April 17 report underscores the intensifying “AI FOMO” among investors, who are racing to secure stakes in what many believe is the next technological revolution. Nowhere is this enthusiasm more pronounced than in North America, where 70% of Q1 VC investments targeted AI ventures.
The sector raked in $73 billion globally in Q1 alone—more than half the total value of all AI-related deals in 2024. A significant portion of that, $40 billion, was raised by OpenAI in a blockbuster round led by SoftBank on March 31. Other high-profile fundraises included Anthropic’s $3.5 billion Series E round.
“The fear of somebody else winning your market has never been higher,” remarked Maria Palma, general partner at Freestyle Capital. She added that the tech’s rapid evolution makes it hard to digest, yet irresistible. However, some caution against the hype. Nnamdi Okike of 645 Ventures warned of a brewing bubble: “When VC funds believe it can only go up, you risk detachment from reality.”
Meanwhile, crypto and blockchain startups also showed signs of recovery. They pulled in $4.8 billion in Q1 2025—more than four times Q4 2024’s $1.1 billion. A $2 billion investment from Abu Dhabi’s MGX into Binance led the charge. It marked the crypto sector’s strongest quarter since Q3 2022.
Also Read: FFGI Announces FFG Token: A New Chapter in Blockchain-Based Film Finance
With a more favorable U.S. regulatory landscape taking shape, crypto VC appears poised for a resurgence. Galaxy Ventures Fund I, led by Mike Novogratz, is reportedly set to exceed its $150 million target and could reach $180 million by June’s end.
As AI surges ahead, crypto isn’t far behind—both signaling a transformative year in venture capital.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
