Venture capital funding experienced a notable resurgence in the second quarter of 2025, with over $10 billion raised, marking the strongest quarter since the first quarter of 2022. June alone accounted for $5.14 billion, the highest monthly inflow since January 2022. Despite this overall increase, some reports indicate that total capital raised in crypto-specific fundraising rounds fell by 20% quarter-over-quarter to approximately $5 billion, with deal counts also declining by 24% to 640. However, merger and acquisition (M&A) activity in crypto was robust, with the six largest deals totaling $5.44 billion, exceeding the total capital raised in funding rounds. Coinbase Ventures led more than 25 deals in the crypto sector during this period. Nearly half of venture capital investments were directed towards artificial intelligence (AI) startups, with significant funding concentrated in Bay Area companies. This influx of capital has contributed to a slow but steady recovery in the San Francisco office market, driven largely by demand from AI firms. Additionally, billion-dollar-plus M&A deals have increased over recent quarters, with Bay Area companies actively acquiring firms across AI, data management, biotech, marketing, and cybersecurity sectors. Globally, venture capital funding has surpassed $100 billion in exits through IPOs and M&A in the first half of 2025, with AI, fintech, and healthcare leading the growth. European tech funding has also surged, fueled by AI innovation, leading to a rise in megarounds and unicorn creation.