Forbes December 16, 2025
Venture capital is undergoing a dramatic polarization in 2025. At one extreme, massive mega-rounds are flowing almost exclusively to AI companies. At the other, private equity is stepping in to fill the middle-market gap. Meanwhile, traditional small-to-medium VC deals are quietly disappearing.
This shift is fundamentally reshaping who gets funded, how companies scale, and what it even means to be “venture-backable.”
As 2025 comes to an end, several defining trends stand out.
The AI Mania: A New Gold Rush
The gold rush is back—only this time, the gold is AI.
Venture capital firms are chasing AI deals with unprecedented intensity, often at eye-watering valuations. After eight straight quarters of declining VC investment, 2025 began at a low point and ended...
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