Global VC Hits $120B in Q3 2025 While India Faces Slowed Funding Amid Trade Tensions

Global venture capital funding surged to a record $120.7 billion in Q3 2025, driven predominantly by AI investments concentrated in the US, which received nearly two-thirds of the capital. In contrast, India saw a slowdown in venture capital investments, maintaining a steady $3.2 billion for the quarter amid ongoing geopolitical uncertainties and US trade tariffs, which have created investor caution. Despite the funding slowdown, India experienced a strong quarter for startup exits, with IPO activity hitting a seven-year high and several consumer tech companies preparing for public listings. Experts from KPMG highlight India's robust macroeconomic fundamentals and vibrant capital markets, expressing optimism that VC investment will rebound once trade uncertainties ease. Investors in India are expected to place greater emphasis on profitability and cash flow as prerequisites for future capital market exits. Globally, AI continues to dominate venture funding, signaling a structural shift in global venture capital allocation towards AI-centric deals.