Fewer startups get funding as AI giants swallow venture capital

By Yajush Gupta · 27 October 2025 · News

Fewer startups get funding as AI giants swallow venture capital

Startups Struggle to Secure Funding

A record-breaking $193 billion has been invested in AI this year, but at what cost? Venture capital deals have plummeted to a 3-year low, leaving many startups in a precarious position.

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Summary

Just 9,358 VC deals closed in Q3, the fewest since 2020, but AI attracted $193 billion this year. BestBrokers analyst Paul Hoffman reveals why investors are betting bigger.