So far this year, investors have put about $7.8 billion into Boston-area startups, per Crunchbase That puts the region on track for a moderate annual gain and the strongest tally in about four years, as charted below.

Invidious comparison

Under normal circumstances, such numbers might be celebrated as pretty strong. But many Bostonians don’t see it that way.

“For the first time, startups in Texas raised more VC money than those in Massachusetts,” one headline this spring. Earlier this year, another correspondent concerns from local startup backers and builders that the tech startup scene is thinning out.

At root, the issue may not be that Bostonians are delivering so little investable startup talent, but rather that other places are swimming in unprecedented capital. This kind of invidious comparison is particularly stark in the AI realm.

Overall, North America venture funding hit a record high in the first quarter of this year, surging to $252 billion. Of that, more than 87% went to companies in Crunchbase AI-related categories.

Few of those AI mega-fundraisers were in Massachusetts. The biggest, most heavily funded names in generative AI, like , and others, are predominantly headquartered in the San Francisco Bay Area. That means Boston didn’t get a slice of history’s largest startup funding rounds.

By contrast, biotech, a traditional area of strength for the Boston area, hasn’t been on a funding tear. True, there’s no dramatic slump. But in a time when a single venture-backed AI company can snag $122 billion in a , biotech round sizes can’t compete for scale.

Standout rounds

Still, by pre-AI standards of venture funding, Boston has been scaling some heavy hitters.

Per Crunchbase , at least 12 companies in the greater metro area 1 raised rounds of $200 million or more this year, listed below.

The largest round went to , a provider of wearable fitness technology and a subscription platform that raised $575 million in Series G funding at a $10.1 billion valuation in March. The company says it is powered by more than 24 billion hours of physiological data and purpose-built AI models to provide predictive, personalized health insights.

, a provider of consumer privacy and security tools, came in second. It secured $375 million in Series B funding in March led by and .

Next on the list is , which provides healthcare plans to seniors on Medicare. The 9-year-old company disclosed in January that it had closed on $366 million across two Series F funding tranches.

Biotech startups, meanwhile, didn’t make the top 3 but were heavily represented on the list. Overall, more than half of funded startups in the list are focused on biotech or healthcare.

Why compare?

Boston isn’t the San Francisco Bay Area, and it certainly isn’t Texas. So it’s worth asking: What is the point of comparing startup ecosystems? Is a metro area flailing if it doesn’t keep up with a particular major innovation cycle, even if it maintains core areas of strength?

At risk of over-generalizing, we’d conclude that competitive rank still matters. A metro area can retain its crown as a startup innovation hub only if it continues to produce transformative companies.

For Boston, there’s no indication the region is losing its edge in biotech and other sectors where it’s long been an established powerhouse. However, in the generative AI era, it’s also evident that the region has not produced one of the most high-valuation players in the space, and that’s put some ding in the city’s reputation as a leading innovation hub.

Related Crunchbase queries:

Related reading:

• North America Q1 Funding Surges Across Stages To Record Level
• Whoop’s Wearable Fitness Tech Lands $575M From Athletes, Celebrities, Institutional Investors To Reach $10.1B Valuation

The global innovation economy remains largely defined by agglomeration dynamics. Worldwide, 19 ecosystems dominate the innovation landscape, increasingly concentrating innovation demand (corporates) and supply (scaleups) — attracting further growth capital (investors).

Meanwhile, other ecosystems struggle to achieve a meaningful presence on the global innovation map and are at serious risk of technological disruption and economic downfall.

Yet something is happening below the surface. Over the past decade, the composition of the Global Innovation Ecosystems Life Cycle Curve changed dramatically, as the number of scaleup ecosystems worldwide has more than doubled.

The trend is not stopping just here: we expect these figures to even triple in the coming years.

In this new scenario, emerging innovation economies hold the potential for disrupting the agglomeration paradigm, toward a new scheme of interconnected networks of specialized local innovation hot spots.

Among them, there is also Africa. While the continent still lacks ecosystems at the most advanced stages of maturity, it now counts four ecosystems at the startup stage and 40 at the standup stage, compared with respectively 25 of those 10 years ago, according to by my organization, , in collaboration with and .

Africa: the awakening giant of the coming decade?

As of today, Africa’s innovation economy includes 883 tech scaleups that have raised a combined $24.7 billion. Despite this progress, the continent still represents only about 1% of global figures.

The African innovation landscape remains highly concentrated around four main hubs: South Africa, Egypt (North-East), Nigeria (West Africa) and Kenya (East Africa). The North-Western corner of the continent still lacks a dominant hub, although Tunisia, Morocco and Algeria remain the leading candidates.

A testbed for clean technologies?

Emerging innovation economies that thrive on the global innovation map typically build on top of highly specialized, unique local strengths.

Our recent analysis has identified clear evidence that Africa holds significant potential over the development of clean energy systems and technologies.

The relative prominence of the cleantech sector in Africa is evident from the data:

• Africa is home to 95 cleantech scaleups, representing roughly 11% of the total scaleup base.
• Collectively, they have attracted approximately one-fifth of all capital deployed to African ventures.
• Cleantech has also generated a disproportionate share of high-growth leaders, accounting for around 20% of both scalers (scaleups that raised more than $100 million) and super scalers ($1 billion-plus).

Within cleantech, a highly specialized vertical is also emerging, what we might call “gridtech”:

• It comprises 16 scaleups (17% of the cleantech total) and two scalers (25% of total).
• It has attracted around 30% of total cleantech funding.
• Africa’s sole cleantech tech giant, Kenya-based , operates within this gridtech vertical.

That said, the numbers still point to a gap.

The elephant in the room

The main challenge is the grid infrastructure deficit, which remains the primary bottleneck to scaling energy system technologies. As shown in the map below, Africa’s grid infrastructure is highly fragmented: High-voltage networks are concentrated in a few densely populated areas, while large parts of the continent remain largely disconnected.

As a result, grid infrastructure development and electrification are key to unlocking Africa’s growth — consider that Africa still accounts for only about 5% of global energy supply — and its innovation potential.

At the same time, the continent holds world-class renewable resources, including approximately 13% of global technical hydropower potential and around 60% of the world’s best solar resources.

Africa’s energy system is expanding, but fully unlocking its economic and innovation potential will depend on accelerating electrification and strengthening grid infrastructure.

Blended finance will be critical to enable this growth. Both private and public capital are required: private capital drives innovation, while public finance enables foundational infrastructure such as grid expansion.

In particular, private capital needs to be complemented by structured public finance initiatives to address the inherent limitations of a relatively small domestic VC market, which remains heavily focused on early-stage investments.

Public capital will be essential for infrastructure development. In gridtech especially, public investors are expected to account for up to about 80% of total investments by 2030, reflecting the capital intensity and risk profile of grid infrastructure.

International capital still dominates the market, with approximately 69% of active investors originating outside Africa, underscoring continued reliance on foreign capital despite growing local participation.

Get the full story in our report:

is chairman of and a professor at . He is a serial entrepreneur who has started three startups in his career, the last of which is , among the five Italian scaleups that have raised the largest amount of capital. He is recognized among the leading international experts in open innovation and has wide experience in setting up and managing open innovation projects — venture clients, venture builders, intrapreneurship, CVCs — with large multinational companies, as well as advising and training on this subject. Onetti has a column on () and several other tech blogs.

Photo by on .

Just through mid-May, China-based robotics companies this year have raised $5.6 billion across 176 deals, Crunchbase data shows. That sum matches total investment to the nation’s robotics companies in all of 2021, the peak of the funding cycle. Investment in the sector has also already eclipsed the $4.3 billion raised by China-based robotics companies in all of 2025.

Startup funding in Asia overall surged to $27.4 billion in Q1, its highest level in over three years, with China capturing $16.5 billion — 60% — of that total, according to recent Crunchbase data. Robotics contributed meaningfully to that $16.5 billion total, with startups in the sector raising $3.3 billion across 126 deals.

Embodied AI boom

A review of Crunchbase data shows that investors now are no longer funding mostly pre-programmed hardware, but increasingly backing China-based startups working on embodied AI — or artificial intelligence with a physical body that interacts with the real world in real time.

That shift toward artificial intelligence-driven robotics mirrors a global surge in investment into robotics and other physical AI startups. It’s also thanks to the rise of advanced, open-source reasoning models that have fundamentally changed how robots operate. Startups are moving away from coding robots line-by-line toward Vision-Language-Action models that allow physical machines to observe, reason and execute physical tasks end-to-end.

In China, robotics startups at the intersection of the software and hardware integration are drawing the largest checks in the space and often back-to-back funding rounds. They include:

• , a 1-year-old humanoid robotics company that integrates embodied intelligence that last month raised a massive $513 million seed round led by and . The Shanghai-based company was valued at $1.9 billion.
• , which develops robotic systems and automation solutions for industrial and service applications, closed a $140 million Series A extension round in January from investors including . Then just three months later, it raised $293 million in a massive Series B round co-led by and
• In February, Beijing-based , which says it’s building a “universal brain” for robots, raised a $290 million Series A led by and . The 2-year-old company was valued at $1.5 billion. Then in April, it announced a $145 million Series A extension financing, bringing the total round to $435 million.
• Humanoid robotics company in February raised a $145 million Series B led by . The 2-year-old China-based company was valued at $1.4 billion. In April, it announced a $290 million extension to that round, bringing its total to $435 million
• Shenzhen-based , a builder of humanoid and quadruped robots, raised a $200 million Series B last month led by and . The 2-year-old company’s robots will be deployed for traffic, security and retail. It was valued at $1.5 billion.

Top investors

Crunchbase data shows the most active investors in the space are largely Asia-based. The busiest this year has been Hong Kong-based , taking part in six deals, including a $200 million round last month for humanoid robotics and embodied intelligence developer .

Among lead or co-lead investors, three China-based firms — , and — have each taken part this year in deals totaling $290 million or more.

Exits gain steam

Venture investors are likely feeling confident as the sector notches notable liquidity events, including IPOs and acquisitions.

The of , targeting a $3 billion to $7 billion valuation, is a milestone for the industry. The company in March filed for an to list on the , and its IPO would likely spur other startups in the space to pursue their own public-market debuts.

The sector has already seen some notable exits.

They include Hong Kong-based ,  a Shanghai-based startup that makes lightweight industrial robots. The company on May 18 listed on the , raising about $86 million. And it did not disappoint. Robotphoenix closed its first full day of trading at HK$53.75 ($6.86 U.S.), up nearly 80%. (Interestingly, Chinese robotics firms as their primary liquidity hub.)

On the M&A front, in what is widely considered a historic first for China’s embodied artificial intelligence sector, AI robotics unicorn in July 2025 engineered a two-stage consortium takeover to in legacy manufacturer for about $290 million. AgiBot’s co-founder formally stepped in to chair Swancor, effectively turning the publicly traded shell into a direct extension of AgiBot.

Ultimately, it seems that 2026 is the year China’s robotics companies are pivoting from raising early venture rounds to mass production, as a domestic market that currently accounts for more than 43% of global robotics venture investment, per Crunchbase.

Related Crunchbase queries:

Related reading:

• China Leads Asia’s Startup Funding To Its Highest Level In More Than 3 Years
• Amid Record Robotics Funding, Apptronik Raises $520M Series A Extension To Boost Production Of Humanoid Robot Apollo

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The energy sector necessary for AI compute also garnered significant funding this year. 

All told, roughly half of European venture funding in 2026 to date has been in AI-related companies, Crunchbase data shows.

The uptick in artificial intelligence investment has coincided with an overall gain in startup funding in the region the last past quarters. Funding was up a third year over year in Q4 and Q1, reaching more than $17 billion each quarter. 

AI talent hubs

One area where Europe is seeing momentum is with frontier labs.

Employees from — the original AI lab established in London in 2010 and acquired by Google in 2014 — have spawned two new labs in London: and . And , previously Meta AI’s lead, formed in Paris. Just this year, the three companies have altogether raised $2.6 billion. 

Last year, German-based AI lab raised hundreds of million in funding. One of the earlier model companies from Europe, , founded in 2023, has raised $4 billion in total. 

Europe is also home to one of the early diffusion model companies, . from Heidelberg, Germany, recently merged with Canada-based in April for sovereign and commercial AI deployments, valuing the merged entity at $20 billion, creating a transatlantic competitor to U.S. model companies. 

The recent spate of new AI lab formation and renewed momentum on the funding front could be a driver for talent hubs to concentrate in Europe. Still, although foundation labs in Europe have raised more than , that represents a tiny percentage of the amount raised by frontier model companies in the U.S.

AI-native

In the European report, found 81% early-stage companies, largely pre Series A, are AI-native — up from 50% a year ago. Leading by company count this year were 12 companies in dev tools and infrastructure and 11 companies in industrials and robotics. 

The advantages of building in Europe are “access to strong engineers in the very beginning — having people that want to build and be part of a founding business, and access to good quality talent that you can retain,” said , a principal at Notion Capital who co-wrote the report. 

He also noted that in earlier vintages, the trend was to “build a company, expand to the U.S. at some point around the Series B. Now, from the start, founders tend to think globally from day one.”

The single most dramatic change, however, is how much leaner teams are ahead of the Series A, he said.

US bound

Despite the more recent pickup, European funding growth has lagged behind the U.S. since 2024. 

The leading San Francisco-based model companies — and — have raised $254 billion since 2023 and recentered the Bay Area post-pandemic as the place to be for ambitious founders. 

“The companies that start in the UK, France, Germany, and the Nordics, then come to Silicon Valley to grow,” said , managing partner at , speaking on current market trends. 

“You can build an amazing business anywhere in the world now. The barrier to building greatness has shrunk,” said McLoughlin, who himself relocated to  San Francisco from the UK in 2010. “But, the chances of building a generational company are so much higher, if you come to the Bay Area.”

UK-founded incubator (EF) relocated to the U.S. in 2024. EF sources founders  from leading universities around the globe to start companies but incorporates each business it funded in the U.S. 

“The Bay Area program is not just about proximity to capital,” said , CEO and co-founder on announcing EF’s recent fund raise. “It changes the ambition gradient. Founders move faster, think bigger and compete on a global stage from day one.”

“I’m seeing more than ever, companies that started in these emerging markets, and then going to the U.S. very early in their journey — not to sell themselves, but to sell to customers,” said , general partner at global investment firm . The firm invests on a global basis day zero at pre-seed, with its Elevate fund investing at later stages. 

“The time to copy a business is a month or two months, as opposed to years,” said Abdel-Nour,  “You have an incentive to go and capture these big markets before your U.S. competition has really reached escape velocity,” he said. 

Related Crunchbase queries:

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In 2025, the Bay Area expanded its dominance of U.S. seed funding — capturing a growing share of both deals and dollars — even as most startups remained geographically dispersed, an analysis of Crunchbase data shows.

The result is a more bifurcated landscape: a handful of major hubs, led by San Francisco and New York, pulling in a larger share of capital, while the rest of the country saw its slice shrink.

The Greater Los Angeles area and the Greater Boston area are the next-largest hubs for seed investment after the Bay Area and New York, but their share of funding at this stage, as measured by dollars, has dipped 1 or 2 percentage points each since 2024.

Where seed funding is clustering

The Bay Area and New York remain the two central hubs for U.S. startup activity. The New York area has largely held steady as a seed funding center, while the Bay Area is pulling ahead, led by heavy investment in AI startups headquartered there.

On a dollar basis, the Bay Area captured 45% of U.S. seed funding in 2025 — up sharply from 33% in 2024 and 28% in 2023, Crunchbase data shows.

New York retained its typical share at around 17%, while Greater Los Angeles and Greater Boston each accounted for about 5% of total funding.

That growth is in contrast to the rest of the country. Startups outside the top four metro areas represented just 28% of U.S. seed funding in 2025, the lowest share on record and well below the 40% average seen from 2018 through 2024.

Startup distribution remains diverse

Still, geography tells a more nuanced story when looking beyond dollars. Two-thirds of U.S. seed-stage startups in 2025 were based outside the Bay Area, underscoring how distributed startup formation remains even as capital concentrates.

And beyond the top hubs, a long tail of smaller ecosystems — including Austin, Seattle, Miami, Chicago, Washington, D.C., Denver and San Diego — continues to produce a steady stream of new companies.

Another caveat: Strip out the largest seed rounds of $10 million or more, and the capital concentration looks less extreme. Without those outliers, the top four markets account for about 61% of seed funding amounts, within 2 to 3 percentage points, closer to historical norms.

Seed deal counts are also concentrating

While total seed funding has climbed, deal activity tells a slightly different story: Fewer rounds are getting done overall and a larger share of them are happening in the top hubs.

The Bay Area alone accounted for roughly one-third of all U.S. seed rounds in 2025, up 5 percentage points from the prior year, per Crunchbase data. New York has remained relatively steady at around 16% of deals since 2018.

Meanwhile, Greater Los Angeles and Greater Boston have each seen modest declines, falling to about 5% and 4% of seed deal share, respectively.

Taken together, the four leading metro areas made up 57% of U.S. seed deals in 2025, per Crunchbase data. The rest of the country accounted for 43%, a drop of about 5 percentage points from prior years.

Bay Area deal sizes shrink

Even as the Bay Area dominates in total capital and deal volume, it looks different on a per-deal basis. Median seed round sizes in 2025 were actually higher in other major hubs — including New York, Boston and Los Angeles — than in the Bay Area, which has seen typical deal sizes shrink since the market peak.

Overall, a more complex picture of the U.S. seed market has emerged in the past five years. Capital is concentrating geographically but not uniformly. The Bay Area is capturing more of the biggest rounds and overall dollars, but two-thirds of funded startups are still created outside of the region. And as a larger ecosystem, the Bay Area’s median seed round sizes were below the other leading hubs with fewer deals, but comparatively larger medians.

Related Crunchbase queries:

Related reading:

• Seed Funding Is Bigger Than Ever — And Harder To Get
• The Largest Recent Seed Rounds Are All For AI Companies
• Seed Funding Hasn’t Stalled, But It’s Skewing Larger And Is More Competitive Than Ever, Crunchbase Data Shows

Illustration:

When I was a child growing up in Japan, Dragon Ball was “contraband.” My parents were unhappy about me reading manga for hours every day. Teachers confiscated manga magazines at school. But I was fascinated by a universe created from the pure imagination of a single person that went on to shape the aesthetic consciousness of more humans than almost any artist of the twentieth century.

Japan didn’t build Dragon Ball. Akira Toriyama did.

From One Piece, Slam Dunk and Hello Kitty characters to , and , each traces back to a singular, obsessive individual who looked, by Japanese social standards, like a weird outcast.

The country globally perceived as the ultimate collectivist society made its greatest contributions to the world through lone visionaries building what no committee would have approved.

What makes this pattern remarkable is what accumulates underneath it. Each obsessive builder, over decades, pulled behind them layers of precision craft, knowledge and discipline that no bureaucracy could have planned.

Japan’s extraordinary concentration of underleveraged assets, from precision manufacturing expertise, materials science technology, longevity and gastronomical research to a generational cultural content library, is the sediment left by people society once called misfits.

The vault is opening

The global anime market was only 30 years ago and to hit around $88.5 billion by 2033, growing annually at more than 9%. Overseas anime revenue and accounting for 56% of total sales — confirming that international markets now outweigh Japan’s domestic earnings.

Sources: AJA Industry Reports, Grand View Research, Fortune Business Insights.

has disclosed that more than 50% of its 300 million global members watch anime. Viewership on the platform has tripled over five years, with anime content watched more than 1 billion times in 2024 alone. Naruto, a manga serialization that began in 1999, logged 330 million hours watched on Netflix in the second half of 2024 alone. Out of the top 10 global franchises, five are Japan-originated.

That is critical social infrastructure.

Note: Some other rankings instead have Mario, Harry Potter and/or Shōnen Jump, but generally Japan-originated IP accounts for half.

The convergence nobody is pricing

At the same time, there is a louder conversation happening in Japan.

The nation is rearming. Its defense budget has nearly doubled in three years, exceeding for the first time the symbolic 2% of GDP threshold. Under a five-year Defense Buildup Program through 2027, Japan has committed ¥43 trillion (~$275 billion) to defense-related spending.

Globally, VC investment in defense-related startups totaled $7.7 billion in 2025, Crunchbase data shows, a record high.

Most observers treat this as a separate story. To me, it is not.

Japan’s manufacturing edge in silicon wafers, photoresists, specialty ceramics, industrial robots, optics and sensors is the same precision culture that made watches accurate to the second and frames hand-painted with obsessive fidelity. The outcast engineers who spent careers perfecting micron-level tolerances for consumer electronics built capabilities that now happen to matter enormously in a world consuming autonomous, high-precision munitions at industrial scale.

The creative and the industrial share the same genealogy: a Japanese individual, largely ignored, building something to an extreme that no one asked for.

This convergence of Japan’s technological prowess and cultural impact is what makes the country’s opportunity genuinely unusual. IP that a teenager in Jakarta, Riyadh, Paris or Lagos carries emotionally,  and precision hardware that only a handful of countries on earth can actually produce, originate from the same national psychology.

One crosses geopolitical lines. The other determines them. Japan’s soft infrastructure and hard capability are rooted in the same stubborn, misfit tradition.

Manufacturing advantage is learnable. The history of industrial development is a history of production methods moving across geographies, in the past over decades, increasingly over months. Competitors can close the gap.

What is harder to replicate is the cultural depth. A franchise relationship formed in childhood does not transfer by policy or investment. , built by a man who spent years mapping insects on foot and wanted to share that obsession with other children, now lives inside the emotional architecture of an entire global generation.

The window is real, and it will not stay open for long

Wars are hard and exhausting. People do not stop wanting to be moved, amused and alive. If anything, that appetite sharpens during geopolitical turmoil. The world increasingly demands the safety that precision manufacturing enables and the meaning that great storytelling provides.

Japan offers both, not by strategic design, but because its most consequential builders were, for a long time, left alone to be strange.

The assets exist. The global demand is accelerating. What Japan is missing is the cross-border fluency — legal, cultural and financial — needed to connect them at the speed the moment requires in the age of AI.

The world is finally ready to pay for what remarkable, overlooked individuals in Japan have quietly been building for decades. The question is whether Japan will be ready to let them and if so, how it can capitalize on its valuable assets quickly enough.

is a seasoned investor, serial entrepreneur and attorney with 25 years of experience bridging law and global business. He currently serves as the inaugural managing director of Japan, where he leads one of the world’s most active startup accelerator programs. He also serves as a senior adviser at , a U.S. and Canada-based hardtech venture capital firm, and as a venture partner at , an innovation advisory firm. An active angel investor, he has backed more than 50 startups, including several unicorns, and founded , an international angel network connecting investors across Japan, the United States, Europe, Asia and the Middle East. His track record also includes co-founding three venture-backed startups. Previously, Shirato spent a decade at global law firms across New York, Toronto, Abu Dhabi/Dubai, Singapore and Tokyo, and before that, held strategic roles as a management consultant at and as a trade negotiator at . He holds a law degree from the , an MBA from the and , and a bachelor’s degree in international law and economics from the .

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And as was the case in the Q4 as well, Q1 was well above the prior five quarters by funding amounts, signaling that European venture funding may be gaining momentum.

Table of contents

• AI above 50%
• UK and France grew YoY
• Europe by stage
• In summary
• Methodology
• Glossary of funding terms

Still, Europe saw more capital going into fewer companies in Q1, with deal volume plummeting 40% year over year. Much of the decline was at seed stage (down 44%) and early stage (down 30%), while late-stage deal volume was in-line with the previous four quarters.

AI above 50%

Funding to Europe-based AI startups increased significantly last quarter, reaching $9.2 billion, or more than half of total venture funding to the region. That marks the sector’s highest proportion in a quarter on record.

The largest four rounds to startups based in Europe in Q1 were for AI-related companies. Data center builder , autonomous driving developer , and frontier lab for physical AI raised more than a billion each, and AI legaltech ’s funding totaled more than $500 million.

UK and France grew YoY

Startups from the U.K. and France raised more funding in Q1, totaling $7.4 billion and  $2.9 billion, respectively. Germany-based startups raised $1.9 billion, flat year over year.

France has emerged as the European leader for AI frontier labs. Last quarter, it saw Paris-based , founded by former AI chief , raise $1 billion in the continent’s largest seed funding round on record. The deal also marked only the second billion-dollar-plus funding deal for a European frontier lab, following s $2 billion round last year.

Europe by stage

In Q1, late-stage funding to Europe-based startups nearly doubled from a year ago. The largest rounds were across a variety of sectors, including AI hardware, fintech, agentic AI, productivity software, sensors, defense, e-commerce and energy.

A total of $9.2 billion was invested at late-stage across 83 deals, up 91% by amounts year over year.

Early-stage funding to the region’s startups fell from a year earlier — by around 20% — Crunchbase data shows. Early-stage investment totaled $5.3 billion in Q1 across more than 240 funding rounds. Within early-stage funding, larger Series A rounds predominated in semiconductors, energy and healthcare.

Seed funding reached $3.1 billion in Q1 across more than 790 deals. The funding total was up 50% year over year, but largely due to the $1 billion round for Advanced Machine Intelligence.

In summary

Larger rounds into critical sectors in AI drove European startup funding up in Q1. A mix of Europe- and U.S.-based investors led the largest fundings last quarter into AI infrastructure, frontier labs, autonomous systems and applications.

Overall, Europe is in-line with global trends as capital concentrates into the largest deals in sectors that are surging due to AI.

Related Crunchbase query:

Methodology

The data contained in this report comes directly from Crunchbase, and is based on reported data. Data is as of April 2, 2026.

Note that data lags are most pronounced at the earliest stages of venture activity, with seed funding amounts increasing significantly after the end of a quarter/year.

Please note that all funding values are given in U.S. dollars unless otherwise noted. Crunchbase converts foreign currencies to U.S. dollars at the prevailing spot rate from the date funding rounds, acquisitions, IPOs and other financial events are reported. Even if those events were added to Crunchbase long after the event was announced, foreign currency transactions are converted at the historic spot price.

Glossary of funding terms

Seed and angel consists of seed, pre-seed and angel rounds. Crunchbase also includes venture rounds of unknown series, equity crowdfunding and convertible notes at $3 million (USD or as-converted USD equivalent) or less.

Early-stage consists of Series A and Series B rounds, as well as other round types. Crunchbase includes venture rounds of unknown series, corporate venture and other rounds above $3 million, and those less than or equal to $15 million.

Late-stage consists of Series C, Series D, Series E and later-lettered venture rounds following the “Series [Letter]” naming convention. Also included are venture rounds of unknown series, corporate venture and other rounds above $15 million. Corporate rounds are only included if a company has raised an equity funding at seed through a venture series funding round.

Technology growth is a private-equity round raised by a company that has previously raised a “venture” round. (So basically, any round from the previously defined stages.)

Illustration:

Overall, investors put $27.4 billion to work across seed- through growth-stage financings for Asian companies in Q1, per Crunchbase data. That’s up about 20% from the prior quarter and nearly double year-ago levels.

Total funding also hit its highest level in more than three years, as charted below.

Funding went to bigger rounds, not more of them. Per Crunchbase data, deal counts were flat with the prior quarter and up incrementally from prior year levels. In general, deal counts haven’t fluctuated widely from quarter to quarter over the past few years, as seen in the chart below.

Table of contents

• Most gains go to China
• Funding rose across stages, with most going to later stage
• Early stage was strong too
• Seed also showed an upswing
• A record quarter for AI
• Looking up
• Methodology
• Glossary of funding terms

Most gains go to China

An estimated $16.5 billion — or 60% of all Asian startup funding — went to China-based startups in Q1. It was also the third consecutive quarter for increased Chinese venture funding, which hit a multiyear low in the first half of 2025.

AI funding drove the gains in China. The quarter’s largest rounds all went to AI-focused companies, including foundational model startup , agentic AI company , and AI-enabled robot developer .

After China, the next-largest venture funding recipient in Asia was India, with $3.8 billion in reported Q1 investment, the highest number in the past four quarters. A big chunk of the funding went to the quarter’s largest equity round, a $600 million financing for AI systems developer .

Below, we chart out venture funding by country to seven leading investment hubs in Asia, showing how regional funding has trended since 2023.

Funding rose across stages, with most going to later stage

Later-stage, early-stage and seed funding all rose sequentially in the first quarter.

Of these, later-stage and technology-growth deals captured the highest share of funding, estimated at $11.7 billion in Q1. The quarter’s largest late-stage round by a long shot was a $2 billion Series C for Singapore-based data center company .

Overall, it was the largest later-stage tally in five quarters, as charted below.

Early stage was strong too

Early-stage investment also rose in Q1, hitting its highest point in two years.

Per Crunchbase data, an estimated $11.2 billion went to Asian companies around Series A and Series B stages. That’s nearly double year-ago levels and up about 17% from the prior quarter, as charted below.

Seed also showed an upswing

Investors also poured more money into seed-stage companies, with AI as a core driver.

Around $3.6 billion went to reported seed and angel rounds in Q1, up 85% year over year and 45% quarter over quarter. Reported deal counts dipped a bit, indicating concentration of capital among a smaller subset of hot startups. However, we expect this number to rise over time, as seed deals are often added to the dataset weeks after they close.

A record quarter for AI

It would be remiss to close out a quarterly report these days without some mention of how much investment went to artificial intelligence.

For Q1, Asian startups in AI-related categories pulled in about $11.2 billion, per Crunchbase data, the highest sum we’ve tracked to date.

Looking up

Overall, the quarterly numbers show increasing momentum in China’s startup ecosystem, fueling much of the rising funding totals in Asia. Investment to startups in India, Singapore and South Korea also rose sequentially in Q1, while funding to Israel declined some.

In sum, it was a solid quarter, peppered with signs of optimism about the regional startup pipeline going forward.

Methodology

The data contained in this report comes directly from Crunchbase, and is based on reported data. Data is as of March 31, 2026.

Note that data lags are most pronounced at the earliest stages of venture activity, with seed funding amounts increasing significantly after the end of a quarter/year.

Please note that all funding values are given in U.S. dollars unless otherwise noted. Crunchbase converts foreign currencies to U.S. dollars at the prevailing spot rate from the date funding rounds, acquisitions, IPOs and other financial events are reported. Even if those events were added to Crunchbase long after the event was announced, foreign currency transactions are converted at the historic spot price.

Glossary of funding terms

Seed and angel consists of seed, pre-seed and angel rounds. Crunchbase also includes venture rounds of unknown series, equity crowdfunding and convertible notes at $3 million (USD or as-converted USD equivalent) or less.

Early-stage consists of Series A and Series B rounds, as well as other round types. Crunchbase includes venture rounds of unknown series, corporate venture and other rounds above $3 million, and those less than or equal to $15 million.

Late-stage consists of Series C, Series D, Series E and later-lettered venture rounds following the “Series [Letter]” naming convention. Also included are venture rounds of unknown series, corporate venture and other rounds above $15 million. Corporate rounds are only included if a company has raised an equity funding at seed through a venture series funding round.

Technology growth is a private-equity round raised by a company that has previously raised a “venture” round. (So basically, any round from the previously defined stages.)

Illustration:

For perspective, we charted out total investment, color-coded by stage, for the past 12 quarters below.

Of that total, $761 million went into late-stage and growth deals, up 158% compared to the $295 million that flowed into such deals in the first quarter of 2025. It’s also up 203% compared with the $251 million in late-stage and growth rounds that were raised by LatAm startups in the 2025 fourth quarter.

Table of contents

• Mexico leads
• Fewer deals
• Some big rounds
• Investor POV
• Methodology
• Glossary of funding terms

Mexico leads

Nearly one-third of the total amount raised in the first quarter went to one startup. Mexico City-based , an online used car marketplace, secured a $300 million Series F financing led by and in February.

Notably, mostly due to that outsized round, Mexican startups outperformed their Brazilian counterparts in the first quarter, raising a total of $404 million compared to Brazil’s $240 million.

Historically, Brazil has been the powerhouse in Latin America for venture capital funding. But it’s not the first time in recent quarters that Mexico has topped Latin America’s largest country. Mexico also raised more funding in the second quarter of 2025.

Overall, the first quarter marks only the second time since Q2 2012 that Mexican startups raised more venture capital than their Brazilian counterparts in Latin America, our data indicates.

Fewer deals

Round counts and total dollars raised decreased substantially sequentially and year over year across angel, seed and early stages. Of the $1.03 billion raised by Latin America’s startups in the first quarter, less than 9% — or $92 million — was raised across the angel and seed stages.

That compares to $161 million raised across those stages in the fourth quarter of 2025, and $152 million in the same first quarter last year.

Just over 17%, or $179 million, was raised at early stages, significantly lower than the $690 million raised in the fourth quarter and $472 million in the same period last year.

We expect the Q1 deal counts to rise somewhat over time, however, as seed rounds in particular are commonly reported weeks or months after they close.

Some big rounds

While Kavak’s round was the largest financing in Latin America in the first quarter, it was not the only nine-figure raise the region saw in Q1.

Argentinian fintech raised $195 million at a $3.2 billion valuation in March in a round led by .

Other large deals that took place in Q1 include:

• Mexico City-based , a financial app built around stablecoins, raised $70 million in a round co-led by and .
• Buenos Aires-based , a payments infrastructure startup, landed a $55 million Series C financing co-led by and.

Notably, the largest rounds included participation from high-profile global funds, including Andreessen Horowitz, Founders Fund, Sequoia Capital and Insight Partners.

Investor POV

, managing partner of New York-based , said his firm has made more than 60 investments in Latin America since 2022 — steadily increasing its investment pace every year from 11 deals in the region in 2023 to 20 in 2025.

In his view, many of the global investors who began putting more funding into Latin America’s startups in recent years are still writing checks there. However, he acknowledges that some “momentum” investors have slowed down.

Still, “almost all of the long-term smart capital investors have remained very active,” he said.

Last year was “all about stablecoins and fintech infrastructure” for the region. We should expect more of that this year, along with increased AI use across all sectors and strong enterprise growth in Brazil, he told Crunchbase News.

Brazil continues to be Endeavor Catalyst’s top market, but it is watching startups across the region, including in countries such as Mexico, Argentina, Colombia, Chile and even smaller markets such as Ecuador, Peru and Uruguay.

Endeavor Catalyst has reason to be bullish on Latin America. Startups it has backed in the region are among the top performers of the firm’s portfolio. More than one-third (34%) of its 2026 Outlier class, which comprise roughly the top 10% best performers in its network, are from Latin America, according to Taylor.

, general partner at São Paulo-based seed-stage firm , told Crunchbase News that his firm’s pace in Latin America has remained constant and “intentionally selective.”

“We’ve always believed that seed in Latin America works best when you’re deeply involved with a small number of exceptional founders and not try to index the market,” he noted.

But like many other investors, OneVC is also investing at an earlier stage.

“One notable shift is that, as founding teams move faster than ever, often reaching product-market signal with leaner teams and AI-native tooling,” Cartolano said, “pre-seed is taking a larger share of our investments, and we expect that to continue being the case for this cycle.”

Like Endeavor Catalyst, Brazil is OneVC’s primary market. It has a home court advantage, but as Cartolano notes, the country also has a lot going for it including being the largest economy in Latin America, one of the world’s most active early-adopter communities for new technology (, -native commerce, AI), and a regulatory environment — particularly in financial services — which in his view “that fosters innovation”

As a secondary focus, interestingly, his firm is tracking an increasing number of strong Latino founders relocating to the United States to build companies.

“We like that,” he said. “They combine deep operational instincts from LatAm with access to the largest addressable market and most liquid exit environment.”

He agrees with Taylor that global interest appears to be renewing in Latin America startups.

“There is no shortage of capital for the best companies in the region, regardless of the state, and we are seeing some large firms investing in LatAm for the first time or coming back after a long period,” he said.

And while fintech has historically dominated when it comes to venture funding in Latin America, Cartolano said that fintech is now unsurprisingly giving way to AI-first companies that sell services, particularly to enterprises.

“The broader market is also shifting from consumer-facing models toward B2B, as enterprise companies are more incentivized than ever to adopt new technologies,” he added. “OneVC is especially focused on GenAI companies that ‘sell work,’ replacing headcount and outsourced services with AI-driven delivery at a fraction of the cost.

Related reading:

• In Q2, Mexico Surpasses Brazil In Venture Dollars For First Time In Over A Decade

Methodology

The data contained in this report comes directly from Crunchbase, and is based on reported data. Data is as of March 31, 2026.

Note that data lags are most pronounced at the earliest stages of venture activity, with seed funding amounts increasing significantly after the end of a quarter/year.

Please note that all funding values are given in U.S. dollars unless otherwise noted. Crunchbase converts foreign currencies to U.S. dollars at the prevailing spot rate from the date funding rounds, acquisitions, IPOs and other financial events are reported. Even if those events were added to Crunchbase long after the event was announced, foreign currency transactions are converted at the historic spot price.

Glossary of funding terms

Seed and angel consists of seed, pre-seed and angel rounds. Crunchbase also includes venture rounds of unknown series, equity crowdfunding and convertible notes at $3 million (USD or as-converted USD equivalent) or less.

Early-stage consists of Series A and Series B rounds, as well as other round types. Crunchbase includes venture rounds of unknown series, corporate venture and other rounds above $3 million, and those less than or equal to $15 million.

Late-stage consists of Series C, Series D, Series E and later-lettered venture rounds following the “Series [Letter]” naming convention. Also included are venture rounds of unknown series, corporate venture and other rounds above $15 million. Corporate rounds are only included if a company has raised an equity funding at seed through a venture series funding round.

Technology growth is a private-equity round raised by a company that has previously raised a “venture” round. (So basically, any round from the previously defined stages.)

Illustration:

Venture firms that set up shop in the Texas capital city included , , and 1, among others. famously moved ’s headquarters to Austin in 2021, while also purchasing a house and establishing a residence there.

But as more employees returned to in-office work, Austin slowly seemed to fall out of favor with the tech community, some of whom said it had been overhyped as a startup hub.

There were reports of tech workers who had moved to the city during the pandemic and , saying they were going back to places like the Bay Area. Musk back to California in 2023.

Funding tops pandemic peak

Undeterred by the “tourists,” the startup and venture community in Austin kept plugging away. And those efforts are reflected in a surge in funding to startups headquartered there last year, with 2025 posting an all-time high for Austin venture investment, Crunchbase data shows.

Investment into Austin-based startups spiked 64.8% to $7.19 billion in 2025 as more investors poured money into companies based in the region, according to Crunchbase . That’s compared with the $4.37 billion raised by Austin-area startups in 2024 and tops even the $6.1 billion raised in 2021, at the height of the venture funding frenzy.

Notably, deal counts actually decreased from 312 in 2024 to 272 year over year, signaling an increase in later-stage deals. Indeed, the data corroborates that with $4 billion of the total raised in 2025 classified as late-stage rounds.

Last year’s totals were also more than double — 130% higher — than the $3.1 billion raised in 2023. That money was raised across 403 deals, signaling much smaller round sizes at the time and a more mature market.

A tech scene decades in the making

, managing partner of , doesn’t believe that the Austin funding performance in 2025 was anomalous.

Rather, he calls it “the payoff from decades of compounding.”

“Talent density in venture categories such as software, fintech, health tech, defense and  robotics has reached a critical mass, driven by waves of Bay Area relocations, both full HQ moves and satellite offices, that brought technical, product and operational talent into the market,” Flager said.

That talent eventually left to build new companies, he said, and the cycle repeated.

“On the capital side, the stack has matured across all stages, from pre-seed through growth, with local firms that have now cycled through multiple funds and understand the market deeply,” Flager said. “Layer in a business-friendly regulatory environment, a relatively lower cost of living, as well as a lower effective tax rate, and Austin becomes an attractive place to start and scale a company.”

Former Austin Mayor saw so much potential in the city’s startup scene that he began a career in venture investing after his tenure ended in early 2023. (He now works for New York-based ).

Part of the city’s success as a startup hub stems from its reputation as a haven for mavericks and risk-takers, Adler has said.

“Most cities in the world, you try something, you fail; it’s hard to have access to the capital the second time,” he told co-founder in a in 2022. “In Austin, the civic folk heroes are the people that tried something and it didn’t quite work out and they worked on it until it did.”

, founder of , a solo GP venture firm based in nearby San Antonio, said that it feels like Texas and the Austin metro area specifically are becoming more attractive to manufacturing- and engineering-heavy businesses.

“Some of that may be thanks to Tesla, and some of it may simply reflect the physical advantages of the state,” he told Crunchbase News. “Either way, this [surge in financing] feels less like hype returning and more like capital concentrating around a narrower set of serious, technically differentiated companies.”

Deal sizes grow

That diversity among funded startups is reflected in last year’s investment totals for Austin, which were boosted by several large, late-stage deals across a broad range of industries.

The largest was a $1 billion Series C round for energy provider in October. New York-based led that financing, which valued the 2-year-old company at $4 billion.

Looking back, February in particular was a busy month for venture funding. That month alone saw the second-, third- and fourth-largest rounds in Austin for the year. They included:

• A February Series C round in which autonomous surface vessels maker raised $600 million at a $4 billion valuation. led the round for the defense tech startup.
• Also in February, , which provides endpoint management, security and monitoring, raised $500 million in Series C extensions at a $5 billion valuation — more than doubling its value from just 12 months prior. The funding came in separate tranches led by and ’s , with participation from other investors.
• Robotics company in February raised $415 million in Series A financing led by  and accelerator (A $520 million extension to that Series A was raised in February 2026, taking the total round to over $935 million.)

The findings correspond with Flager’s observations.

“A good chunk of the capital raised in Austin was driven by several large deals. Similar to what we saw across the U.S. in 2025, venture funding in Austin was more concentrated than it has been in the past,” he told Crunchbase News. “Roughly 38% of the capital deployed went to the top five venture financings in Austin. I believe the top 10 deals nationally accounted for more than 40% of the capital raised last year. We’ll see if this trend continues into 2026 and beyond. The start of the year suggests it will.”

, founding partner of , agrees, noting that from a dollars perspective, the surge in financings was driven by a handful of outsized capital-intensive deals in newer categories such as defense and deep tech.

“These companies require a combination of technology, land for manufacturing facilities, and talent for manufacturing tasks. Austin has unique skillsets for that,” he said. “It has a density of three things: talent in deep tech with , and many others moving to Texas in light of favorable business conditions with expertise in these industries; expansive land around Central Texas that is inexpensive, especially compared to California; and lower cost manufacturing-related labor especially given the surge in manufacturing jobs such as at Tesla in recent times.”

Burgeoning industries

Once upon a time, Austin was better known as home to software and CPG companies. And while those types of companies certainly still exist, a number of other industries are growing increasingly robust, as the local investors have pointed out.

As with many top tech markets, Flager said Austin has long been strong for application and infrastructure software, which is currently being challenged by AI. In his view, that talent has migrated to building “quality” vertical agentic software and AI-native businesses.

“We are seeing these companies grow quickly and build scale, while using less capital — which is exciting,” he added. “The domain experts who built and scaled application software companies here over the last two decades are spinning out to build the next generation of native AI businesses.”

The market overall is also broadening in interesting ways. Defense and autonomy have emerged as breakout categories, with Austin becoming one of the stronger markets in the country for dual-use and autonomous systems companies, noted Flager.

“The combination of software and hardware skills now in Texas, along with a business-friendly regulatory environment, has allowed Austin to take a leadership position in these important and developing markets,” he said. “Energy tech is also a natural fit given Texas’ grid scale and the surging power demands of AI infrastructure.”

Finally, robotics and advanced manufacturing are also gaining momentum, driven by deep engineering talent and the ability to scale manufacturing near Austin cost-effectively, allowing engineers, executives and other factory employees to coexist and collaborate in close proximity.

Srinivasan noted that his firm is seeing strong activity in vertical AI companies, or companies that serve vertical markets with AI that is tuned on specialized proprietary vertical data, often targeting the services and labor expenditures by their customers.

“These companies deliver ‘Services as Software’ with close to software gross margins and pricing models that are based more on usage and outcomes as opposed to the traditional seat-based models,” he said.

Srinivasan also expects the city to continue to see large funding deals in defense and deep tech, given the combination of local strengths and robust global demand for such products.

Continued momentum

Investors and companies continue to be drawn to Austin. In late December, San Francisco-based venture firm in the city. One of the firm’s founders, , also announced that he had personally moved to Austin. The firm’s other founder, , had lived and worked in the city since 2022.

In late March of this year, Musk to build two semiconductor factories totaling 100 million square feet in Austin to supply advanced chips for and Tesla. The venture, known as Terafab, aims to manufacture 1 trillion watts of computing power per year, he said. Media outlets valued the initiative at nearly

Also this week, Barcelona-based AI health tech startup announced it will open an office and hire in Austin.

CEO told Crunchbase News that with the company’s New York office already established, the next step was not just expansion, “but choosing the right place to build.”

“And we chose Austin for one reason above all: talent,” he said. “As an AI health tech company, our success depends on attracting exceptional people across engineering, data and life sciences. Austin has rapidly become one of the most competitive talent markets. The city is one of the fastest-growing in the United States. This brings together deep tech expertise, entrepreneurial energy and a growing concentration of healthcare innovation. Ideal for our goal of building an R&D hub. “

Coelho also points out that Biorce has witnessed a “trend” of people moving from the Bay Area to Austin, noting that “the quality of life has gained notoriety.”

“But for us, this isn’t about following a trend,” he added. “It’s about building where the best people are — and where they want to be.”

Related Crunchbase query:

Related reading:

• Only 2 States Saw Their Share Of US Venture Funding Rise Last Year
• Texas Startup Funding Declines, Led By Dip In Austin-Area Investment
• Lower Costs, Laid-Back Lifestyle Continue To Draw Tech Companies To Austin, Texas
• The 10 Biggest Rounds Of February: Saronic And NinjaOne Lead Big Month
• NinjaOne Snags $5B Valuation In Massive $500M Round
• Amid Record Robotics Funding, Apptronik Raises $520M Series A Extension To Boost Production Of Humanoid Robot Apollo

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