World enterprise capital funding reached $120 billion throughout 7,579 offers in Q3 2025, marking the fourth consecutive quarter above $100 billion, a report mentioned on Thursday.
Synthetic intelligence (AI) remained the main sector for funding, whereas exit exercise rose to $149.9 billion, collectively accounting for a big chunk of exercise, in response to the report from international consultancy KPMG.”India skilled a banner quarter for exits in Q3 2025, with exit worth surging to a excessive not seen in not less than seven years.
Regardless of the gentle VC funding in Q3, there continued to be optimism out there given the expansion in startup exit exercise significantly by way of IPO exits,” the report mentioned. The KPMG report mentioned that as a result of India’s sturdy macroeconomic fundamentals and vibrant capital markets, there may be substantial optimism that VC funding will start to rebound as soon as commerce uncertainties are resolved.
Additional, IPO exercise can also be anticipated to extend over the subsequent few quarters in India, the report added.“Macros are nonetheless sturdy, the capital markets are nonetheless vibrant, and numerous capital has been raised that might want to get deployed—so funding ought to enhance as uncertainties calm.
However buyers shall be targeted closely on the trail to profitability and money flows as a result of with out these, you will not get a capital market exit,” mentioned Nitish Poddar, Accomplice and Nationwide Chief, Personal Fairness, KPMG in India.AI mannequin growth and AI-powered functions attracted the biggest funding rounds, whereas buyers are additionally specializing in defence expertise, robotics, well being expertise, quantum computing, and various vitality.
Company VC participation rose to $58.6 billion, with the US on the forefront, whereas software program continued to dominate funding sectors. World exit worth elevated from $119.2 billion in Q2 to $149.9 billion in Q3, marking the very best stage since This fall 2021.
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