Global Venture Funding Declines Amid Caution, Indian Startups Down 16%

Global venture capital funding slowed significantly in April 2025, with total investment dropping from March's exceptional high, largely driven by a record $40 billion round for OpenAI. April saw $23 billion in startup funding worldwide, with artificial intelligence companies leading the way and capturing about 30% of the total, while healthcare, biotech, and financial services also attracted notable investment. U.S.-based startups continued to dominate, raising 62% of global funding, while funding in China, the UK, and India lagged behind. In the crypto sector, both the number of deals and total funding value fell to multi-year lows, with investors shifting focus from AI and Web3 to infrastructure and developer tools, and more private and late-stage rounds replacing early-stage enthusiasm. India's startup ecosystem also experienced a decline, with April’s funding down 16% year-over-year and fintech remaining the most attractive sector for investors; average deal sizes held steady, but overall capital inflow remained subdued. These trends reflect broader investor caution, a heightened preference for later-stage companies, and increased selectivity amid ongoing macroeconomic uncertainties.