Why AI Is Hogging Almost 60% of Venture Capital—Aliens Approve

In the wondrous first quarter of 2025, artificial intelligence startups somehow convinced globe-trotting investors to throw their money at them like it was a cosmic comedy show — grabbing a staggering 57.9% of venture capital dollars worldwide, according to the ever-watchful Pitchbook.

“Investors are afflicted with a particularly virulent form of AI FOMO—fear of missing out—often mistaken for sudden-onset techno-enthusiasm,” the report deadpanned on April 17. Just last year around this time, AI only charmed 28% of the VC cash; clearly, someone turned up the hype dial to 11.

In North America, that frenzy hits a jaw-dropping 70%. Apparently, investors there woke up one morning and said, “Hold my coffee; I want in on this robot revolution!”

The global AI circus raked in $73 billion—more than half of the entire year’s prior tally—largely thanks to OpenAI’s $40 billion round from SoftBank, closing on March 31 as if the gates of tech Valhalla opened just for them.

Other contestants like Anthropic managed to scrape together a respectable $3.5 billion in their Series E round, which in normal terms is casual chump change.

Maria Palma, a general partner at Freestyle Capital and apparent connoisseur of market panic, chimed in: “Nobody’s about to let their silicon friends lose this game. The rate of tech change is so darn fast it might give you indigestion. Or a mild existential crisis. Or both.”

Meanwhile, Nnamdi Okike of 645 Ventures played the party pooper: “Brace yourselves for winners and many, many losers. Also, a few folks who think this rocket only goes up—spoiler alert: It doesn’t.”

Rocketing venture capital numbers

Crypto Venture Capital: Slightly Less Crazy, Still Climbing

Cryptocurrency and blockchain weren’t completely left out of the party—they scraped together $4.8 billion in Q1, with Abu Dhabi’s MGX throwing a casual $2 billion into Binance’s digital wishing well.

This sum dwarfs last year’s Q4 $1.1 billion, making it the biggest crypto VC shindig since sometime back in 2022 when people still believed in flying cars and perfectly sane markets.

Apparently, crypto venture capital is thawing like a bear waking from hibernation thanks to a friendlier US regulatory climate. Or at least that’s the current narrative.

On April 17, whispers emerged that Mike Novogratz’s Galaxy Ventures Fund I might not just hit— but blissfully soar past its $150 million target, flirting with $180 million before June’s curtain call. Because when the galaxy conspires, pigs occasionally learn to fly.

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2025-04-17 08:03