US Startup Funding Overview – July 2025
Key Insights – July 2025
July 2025 showcased exceptional venture capital activity with $16.66B invested across 496 companies, marking one of the strongest funding months of the year. This represents a remarkable 64% increase from May 2025’s $10.15B and demonstrates robust investor confidence in transformative technologies. The month was dominated by several mega-rounds, including Anduril Industries’ massive $2.5B defense technology funding.
Artificial Intelligence emerged as the clear winner, capturing over $5.2B in funding across 65+ companies (31% of total funding), while Aerospace and Defense sectors attracted $2.8B+.
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Top Industries by Investment
| Industry | Total Funding | Deal Count | Avg. Deal Size |
|---|---|---|---|
| Artificial Intelligence (AI) | $5.20B | 65 | $80.0M |
| Aerospace & Defense | $2.80B | 12 | $233.3M |
| Clean Energy | $950M | 15 | $63.3M |
| Information Technology | $750M | 45 | $16.7M |
| Health Care | $650M | 30 | $21.7M |
Funding by Round Type
| Round Type | Total Funding | Deal Count | Avg. Deal Size | Median Deal Size |
|---|---|---|---|---|
| Late-Stage | $9.56B | 46 | $207.8M | $100.0M |
| Early-Stage | $3.00B | 258 | $11.6M | $2.6M |
| Series A | $2.07B | 130 | $15.9M | $12.0M |
| Series B | $2.03B | 62 | $32.8M | $23.7M |
Overall median deal size: $7.0M across all 496 transactions
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Detailed Analysis
Market Context
Total US startup funding in July 2025 reached $16.66B across 496 companies, representing a remarkable 110.9% increase year-over-year from July 2024’s $7.9B. This exceptional performance demonstrates robust investor confidence and marks one of the strongest funding months in recent venture capital history.
Key Metrics
- Average deal size: $33.6M (+52% vs May 2025’s $22.1M)
- Median deal size: $7.0M (showing wide distribution in deal sizes)
- Largest deal: Anduril Industries at $2.5B
- Funded companies: 496 (+8.3% vs May 2025’s 458)
- AI funding dominance: 31.2% of total funding ($5.2B)
- Mega-rounds ($1B+): 3 deals totaling $5.4B
Round Stage Dynamics
Late-Stage rounds dominated funding by volume, capturing 57.4% of total capital ($9.56B) across just 46 deals, with an average deal size of $207.8M. This concentration reflects investor preference for proven companies with established revenue streams and clear paths to profitability.
Early-Stage activity remained robust with 258 deals totaling $3.0B, though at much smaller average sizes ($11.6M average, $2.6M median). The median deal size across all rounds was just $7.0M, highlighting the significant impact of mega-rounds on overall averages.
Series A and B rounds showed healthy activity with $2.07B and $2.03B respectively, indicating a balanced funding ecosystem across company stages. Series B rounds averaged $32.8M, reflecting investor confidence in scaling companies.
Industry Insights
Artificial Intelligence dominated the funding landscape with over $5.2B across 65+ companies, representing 31% of total monthly funding. Major AI deals included Thinking Machines Lab ($2.0B), Anysphere ($900M), and Applied Intuition ($600M), showcasing investor confidence in AI infrastructure, development tools, and autonomous systems.
Aerospace and Defense captured significant attention with $2.8B+ in funding, led by Anduril Industries’ record-breaking $2.5B round. This sector’s strength reflects growing investor interest in national security technologies and advanced defense capabilities.
Clean Energy maintained strong momentum with TerraPower’s $650M nuclear energy round and TAE Technologies’ $150M fusion investment, highlighting continued investor commitment to sustainable energy solutions and next-generation power technologies.
Geographic Distribution
California dominated the funding landscape, securing over $8B across major deals including Anduril Industries ($2.5B), Thinking Machines Lab ($2.0B), and Anysphere ($900M). The state’s continued leadership reflects its deep talent pool and established ecosystem for technology and AI companies.
New York emerged as a significant hub with $875M+ in funding, led by Cyera’s $540M cybersecurity round and strong fintech activity. Washington State contributed substantially through TerraPower’s $650M clean energy round, while Pennsylvania showed strength in AI healthcare with Abridge’s $300M funding.
Market Milestones
- Largest defense tech round: Anduril Industries at $2.5B
- Biggest AI infrastructure deal: Thinking Machines Lab at $2.0B
- Major coding platform funding: Anysphere at $900M
- Nuclear energy breakthrough: TerraPower’s $650M validates investor confidence in next-gen nuclear
- Cross-sector AI adoption: AI companies spanning healthcare, legal, and cybersecurity
- Record monthly total: $16.66B marks one of the strongest funding months in VC history
- Late-stage concentration: 46 deals captured 57.4% of total funding
Notable Highlights
- Anduril Industries’ $2.5B round marks one of the largest defense technology investments in recent history
- AI sector concentration: 31% of total funding went to AI companies, highlighting sector dominance
- Three mega-rounds ($1B+) totaling $5.4B demonstrate continued appetite for transformational companies
- Late-stage bias: 57.4% of capital went to late-stage companies despite representing only 9% of deal count
- Deal size disparity: $200M+ average for late-stage vs $11.6M for early-stage rounds
- Geographic concentration: California captured nearly 50% of total monthly funding
- Sector diversification: Strong performance across AI, aerospace, clean energy, and fintech
Notes:
- Data compiled from US startup funding rounds in July 2025
- Companies may be counted in multiple industry categories
- Anduril Industries’ $2.5B round represents 15% of total monthly funding
- AI-related companies collectively received $5.2B+ (31% of total funding)
- Late-stage rounds represented 57.4% of funding by volume across 9% of deals
- Three companies raised $1B+ rounds in a single month
- California-based companies secured nearly 50% of total funding
- Overall median deal size of $7.0M reflects broad-based activity despite mega-round concentration
- Average deal size of $33.6M reflects healthy, sustainable investment levels
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