Startup funding hit records in Q1. But the outlook for 2025 is still awful.

Startups attracted $91.5 billion in venture capital funding in Q1, according to the latest report from data provider PitchBook. This figure not only exceeds the previous quarter’s allocation by 18.5% but also represents the second-highest quarterly investment in the last decade. Despite this seemingly positive news, Kyle Stanford, lead U.S. venture capital analyst at PitchBook, appears to be the most bearish about VC dealmaking since he started covering this market 11 years ago. The source of Stanford’s negativity? Shattered expectations that 2025 would bring significant exits, creating a cycle where IPOs and big acquisitions would generate tons of cash for investors – and founders – who would then channel plenty of cash back into startup funding. That is, after all, the Silicon Valley way. But the stock market volatility and fears of a recession triggered by President Trump’s tariff policy have derailed these hopes. Startups don’t want to debut on the public markets during a time w ... Read full article.