AI Continues to Fuel US VC Investment Despite Higher Burn Rates; Silicon Valley Bank Releases Latest State of the Markets Report

Key Themes: Fundraising: Fundraising by venture funds in the US is on track to hit $56B this year, a 21% drop from 2024 and the lowest level since 2017. Mega-funds are dominating, leading to larger deal sizes, especially in AI. Among conventional VC fund capital raised in the US over the last three years, more than 36% went to funds at least a billion dollars in size—up from 20% for the period ending six years ago. AI Burn Rate: $5 is burned by the median Series A AI company to gain $1 of new revenue. Burn ...