Venture capital is flowing heavily toward AI, making fundraising more difficult for startups outside the sector—but the available figures do not show that non-AI companies can no longer raise money. In a TechCrunch report published October 4, 2025, PitchBook data reported by Bloomberg put AI’s share at more than half of venture investment in the latest quarter discussed.
How much venture capital is going to AI startups?
TechCrunch reported that PitchBook data showed $192.7 billion of the $366.8 billion in global venture investment so far in 2025 had gone to AI startups. That is a year-to-date figure reported in the October 4, 2025 article, not a full-year total. The article attributes the figures to PitchBook as reported by Bloomberg; it does not provide PitchBook’s underlying tables or definitions. TechCrunch’s report
The latest quarter had different U.S. and global shares
For the most recent quarter referenced in that report, AI represented 62.7% of money invested by U.S. venture capitalists and 53.2% of money invested by global firms, according to the same PitchBook figures. These are quarter-specific shares, not year-to-date percentages. The article does not state the quarter’s exact dates.
What the numbers say about fundraising conditions
The figures point to a crowded market for companies outside AI: a large portion of available venture dollars was going to AI, and TechCrunch described much of that AI funding as concentrated in marquee companies. The report gives no quantified share for those largest recipients. It cites Anthropic’s announced $13 billion Series F in September 2025 as one example of the scale of funding reaching a prominent AI company.
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The report also says 823 funds had been raised globally so far in 2025, compared with 4,430 in 2022. Those figures count funds raised, not individual startup financing rounds, and the 2025 number is year-to-date rather than a full-year total. They suggest a much thinner fund-formation environment than in 2022, but do not by themselves establish how much capital was available to any particular startup.
Can a non-AI startup still raise venture capital?
Yes. The report describes investment allocation and fund formation; it does not say that every non-AI startup failed to raise, or compare fundraising outcomes by sector, company quality, stage, or geography. Its figures support a market-pressure thesis, not a universal rule about what founders can accomplish.
PitchBook research director Kyle Sanford characterized the market to Bloomberg as “bifurcated,” saying “you’re in AI, or you’re not” and “you’re a big firm, or you’re not,” as quoted in TechCrunch. That captures the perceived divide, but the article does not establish that AI affiliation or firm size alone determines a startup’s fundraising outcome.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What the report cannot establish
- It does not define which companies count as AI startups or explain the underlying data methodology.
- It does not show how funding outcomes differed by startup stage, sector, company quality, or geography.
- It does not quantify how much of AI investment went to the largest companies.
- It does not establish that a non-AI startup is unable to raise venture capital.
Accordingly, the most defensible reading is that AI’s exceptional share of investment raised competitive pressure for other startups, while the odds for any individual company remain unmeasured by this report.
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