The venture capital landscape is undergoing a structural shift. Supply chain disruptions, tightening regulations, and new cybersecurity requirements are prompting investors to focus on startups that combine adaptability with strong operational fundamentals.
Global VC investments are projected to exceed USD 400 billion in 2025, a roughly 9 percent increase compared to 2024 levels, despite the macroeconomic outlook. North America continues to account for the majority of global venture capital flows, while Europe has shown more moderate but steady growth. In parts of Asia, early-stage activity has slowed due to policy changes and tighter domestic capital controls. However, deal volumes remain much lower than the record-breaking peak of 2021 (estimated at USD 671 billion).
The year-on-year growth is primarily attributable to specialised funds in AI, deep tech, fintech, and healthcare – accounting for 40 percent of new vehicles – as well as late-stage rounds and mega deals. The latter includes Anthropic’s USD 13 billion and xAI’s USD 10 billion funding rounds, which account for about 60 percent of flows in Q3 2025 late-stage funding.
Other than the appeal of AI, healthcare continues to draw in capital as investors seek defensible demand and long-term resilience, particularly in biotech and medical infrastructure. Regulatory clarity and improvements to financial infrastructure have helped stabilise fintech investments in Europe and the US.
Investors are concentrating capital on sectors that can withstand economic shocks, while spreading funds across multiple regions to reduce risk. Early-stage startups in emerging markets, however, are facing slower fundraising cycles due to economic uncertainty. This has placed additional pressure on seed stage founders to show traction earlier in the lifecycle.
“VC investments have been a lot more cautious as the market corrects itself,” says Alexander Kopylkov, a seasoned investor whose strategic guidance has helped over 20 European startups in AI, advanced technologies, and high-impact innovations achieve multi-million dollar valuations, consistent revenue growth, and market expansion.
“Many investors have re-assessed the pricing of risk and the building of value,” says Kopylkov. Investors are directing more efforts towards reviewing unit economics, the ‘path to profitability,’ governance structures, and leadership decision frameworks. “Strategies are more centred on resilience, adaptability, capital efficiency and long-term execution, rather than on assumptions of quick exits or continuous expansion.”
Drawing on a background in engineering and experience building and exiting a real estate business, Kopylkov has increasingly focused on hands-on engagement with founders. His work often involves refining go-to-market strategies, strengthening governance, and aligning growth plans with regulatory and operational realities, particularly in European markets.
“VC portfolios have become more narrowly concentrated into fewer companies with strong fundamentals,” Kopylkov says. “AI alone drew in USD 49.2 billion in the first half of the year because it is a force multiplier with exponential upside. Other strong sectors that can handle economic fluctuations, like technology and healthcare, are also dominating portfolios,” he adds.
Kopylkov’s investment philosophy places emphasis on the careful selection and development of promising ventures. Over two decades, he has guided companies through critical growth phases, including market entry, operational scaling, and strategic exits, solidifying his reputation as a leader in the European venture capital ecosystem.
“We’re continuously undertaking scenario planning, asset-liability modelling, and stress-testing to counter market risk factors and optimise our portfolios for the long-term,” says Kopylkov. “It is important that portfolios cover different stages, geographies, and types of investments to prevent significant losses during market instability.”
Ultimately, the 2025 landscape reveals a venture capital market that has moved past the ‘growth at all costs’ era, favouring fundamental strength and strategic agility as the most reliable safeguards in today’s environment.
