Venture capital funding in the startup sector has experienced notable shifts in early 2025. Funding amounts increased by 86% year-over-year, although the number of deals declined by 28%, indicating that more capital is concentrated in fewer startups. Crypto venture capital investments reached $4.73 billion in Q1 2025, marking the highest level since Q3 2022. However, pre-seed capital dipped compared to Q1 2024, reflecting investor caution possibly due to inflation, market volatility, and tariff uncertainties. Crossover funds have reduced the number of deals but increased deal sizes to levels seen during previous market peaks, focusing on startups with proven performance amid constrained IPO and M&A activity. Early-stage deals have seen rising valuations, while late-stage funding has tightened, suggesting reserved investor sentiment as startups approach exit stages. Meanwhile, Carta’s plan to launch a private stock exchange failed to gain traction with startup and VC clients, contributing to a slowdown in its growth to around 20%. Overall, the venture capital landscape in Q1 2025 is characterized by larger investments in fewer, more mature startups and cautious capital deployment in early and late-stage rounds.