World venture capital transactions decreased in the first quarter of 2025 compared to the same quarter a year ago, according to a report by the National Venture Capital Association (NVCA) and Pitchbook.
In North America, there were 3,155 agreements in T1 2025, against 4,282 agreements in T1 2024. In Europe, there were 1,852 agreements in T1 2025, against 2,917 agreements a year earlier; In Asia, the number of agreements was 2,063 to T1 2025, against 3,111 a year earlier; In Latin America, the number of transactions was 156, compared to 225 a year earlier. And in the rest of the world, there were 325 offers at T1 2025, against 561 transactions a year earlier.
In T1 2025, the releases of mergers and acquisitions for companies supported by VC also decreased, with a transaction value for an amount of $ 78.2 billion on 636 transactions, against an average of $ 80 billion out of 726 per quarter in every quarters of 2024.
Asia results
Melanie TNG, private capital analyst in Asia-Pacific, said in the report that the activity of the VC agreement in APAC remained moderate in the first quarter of 2025, pursuing a multi-year prudence tendency in the middle of macroeconomic uncertainty.
“The number of transactions has decreased, but the total invested capital has increased sharply, driven by larger towers in the B2B space. Binance raised $ 2 billion, which was the biggest agreement in Asia,” said TNG.
The exit activity supported by VC continued to be lagging behind in Asia, falling at only 95 outings at T1 2025, the lowest since the second quarter of 2019, said TNG. Historically, the region’s markets fought with coherent exit channels, especially because many remain relatively in the development of robust financial ecosystems. The exit drought also had an impact on fundraising, which has remained silent while the LPS awaits lighter liquidity signs.
TNG said that information technologies have remained the highest sector by the number of transactions, underpinned by the current momentum in AI and digital infrastructure. This trend was also supported by strategic initiatives led by the government, especially since geopolitical tensions continue to stimulate the push towards technological sovereignty in developed Asia.
South Korea, for example, launched a KRW 34 Billions fund in February to support advanced industries such as semiconductors, batteries and biotechnology. In March, China also announced a state-guided venture capital fund to support advanced manufacturing and strategy technologies.
American results
Kyle Stanford, director of research in American venture capital in Pitchbook, said that the American market has become very branched off between a handful of companies capable of collecting an infinite sum of money and the rest of the market which continues to fight by a capital shortage.
In the United States, around 71% of the total value of the agreements went to AI investments. This amount is very biased with the $ 40 billion from Openai. Although excluding this agreement, the AI still captured 48.5% of the total invested during the quarter on the 1/3 of the transactions concluded.
“The exit activity has shown signs of excitement in the first quarter with the IPO of high -level Coreweave, the announcement of an acquisition of $ 32 billion in WIZ (to be completed), and several other well -known Introduction on Brand Exchange,” said Stanford. “However, apart from these few transactions, the liquidity market has remained moderate. Only 12 companies have completed public lists and liquidity concerns abound on the market. ”
The lack of distributions continues to put pressure on the fundraising market. Only $ 10 billion in new commitments were closed in the first quarter, which defines the year for the lowest fundraising environment since 2016.
Europe’s results
Navina Rajan, Europe / Middle East / North Africa, private capital analyst, said that the European value of the VC agreement in the first quarter was below last year, because the first quarter of 2025 presented signs of an environment and more cautious uncertainty felt by a broader macroeconomics.
By vertical, the AI has entered the vertical most classified by the value of the agreement such as the life sciences and the Finch ends have also shown resilience. It is likely that the activity and the classification will evolve as we progress throughout the year.
The exit value also experienced the start of the year. Despite the recent market volatility, we always expect IPO activity to happen in Europe because evaluations and volatility remain in favorable thresholds for an introductory window.
“The capital raised by the venture capital funds based in Europe have experienced a start of the year when most of the farms were seated between more hooks. The largest vehicles closed this year were outside the United Kingdom. The emerging directors have also acquired a share of fundraising with a few funds for the first time,” said Rajan.
Latin America results
And Stanford said that VC investment in Latin America had reached $ 1.4 billion in the first quarter, the strongest quarter for the value of the agreement since the third quarter of 2022. Several large transactions have led a value, including an investment of $ 376 million in the Ualá digital banking application. Transaction counts have slipped around 20% quarterly, arriving at the lowest since 2020.
Only two VC funds were closed with new commitments in Latin America during the first quarter. Only 22 funds have closed since the start of 2024, with less than $ 600 million in total commitments. This will have impacts on short -term competition without increasing foreign investment. The absence of outings continues to weigh on the Latin American VC market.
