Global venture capital activity posted its strongest half-year performance since early 2024, with total deal value reaching $178 billion across 16,400 transactions in the first six months of 2026, according to preliminary data from PitchBook and Crunchbase.
The 22% year-over-year increase was driven overwhelmingly by enterprise artificial intelligence startups, which captured $62 billion — more than a third of all venture dollars deployed. The figure underscores the extent to which AI has reshaped the investment landscape, pulling capital away from sectors that dominated funding rounds just two years ago.
“We are witnessing the maturation of the AI investment cycle,” said Marcus Chen, managing partner at Bay Area venture firm Ridgepoint Capital. “The early infrastructure plays have given way to application-layer companies that are generating real revenue. That is what is bringing growth-stage capital back to the table.”
Notably, late-stage rounds accounted for 58% of total deal value, reflecting a shift toward larger, more concentrated bets on proven companies rather than the spray-and-pray approach that characterized the 2021-era market. The median Series C round in the AI sector reached $94 million, up from $71 million in the same period last year.
Geographically, North America maintained its dominance with $98 billion in deal value, but Asia-Pacific showed the fastest growth rate at 31% year-over-year, powered by a resurgence in Chinese semiconductor and robotics startups. European venture activity rose a more modest 14%, though the continent recorded a record number of deals above €100 million.
Exit activity also improved, with 42 venture-backed IPOs in the first half — nearly matching the full-year total for 2025. M&A volume rose 18%, with strategic acquirers paying a median premium of 47% above the last funding round valuation, suggesting corporate buyers are moving aggressively to secure AI capabilities before prices climb further.
The data points to a venture market that has found its footing after two years of recalibration. With interest rates expected to decline modestly in the second half of the year, analysts project full-year 2026 deal value could exceed $380 billion, which would make it the third-largest year on record behind 2021 and 2022.