If you’re raising early-stage capital, the outlook appears strong, but for late-stage companies, the bar is higher than ever.
In partnership with Aumni, a J.P. Morgan company, we’re pleased to share the Q2 2025 edition of the Venture Beacon. This report delivers a detailed, data-driven look at early- and late-stage deal activity, valuation trends, and structural shifts in the venture ecosystem.
Select Highlights from the Q2 2025 Venture Beacon:
- Data through the first half of 2025 reinforces early-stage resilience amid Iate-stage decline. Seed through Series C rounds demonstrated strong performance in Q2 2025, with deal sizes growing 5 to 22% and valuations rising 3 to 60% quarter-over-quarter, while Series D+ rounds experienced sharp declines of 8.9% in capital raised and 48% in pre-money valuations, reflecting reduced mega-round activity at later stages.
- Seed rounds are evolving structurally, likely to bridge extended fundraising timelines. Seed deals continued to outperform later-stage financings in H12025, with companies raising larger Seed rounds. The data suggests traditional stage definitions are evolving as Seed rounds increasingly adopt characteristics historically associated with Series A financings. Further, the Seed to Series A graduation pipeline improved significantly, with 21% of Q2 2023 Seed raises in Aumni data successfully going on to raise a Series A within the following two years, from 12% the prior quarter.
- Al premiums persist despite shifting market share. Artificial Intelligence companies maintained strong valuation premiums across multiple sectors at Series A, though Al representation across funding stages has plateaued or declined in H12025. Al companies in the aggregate have taken a lower share of total funding allocation in the first half of 2025 compared to 2024, with the exception of Series D+ rounds.
- Secondary markets stabilized with improving sentiment. While secondary transaction volume remains at pre-pandemic levels, 28.9% of H12025 secondaries traded at premiums to recent equity rounds. The average secondary tranche size remains subdued at $1.2M to $1.4M, indicating that while sentiment has improved, it remains tempered by continued investor caution.
- Founder-friendly terms continue to accelerate in H12025. Founder preferred stock incidence accelerated to 11% in H12025, measured by inclusion as a stock provision tracked in equity financing closing set documents, from 9% in 2024 and 6% in 2023.
Download the full report for a detailed analysis of these trends and others shaping the venture capital landscape.