Key Takeaways
- • Global VC investment more than doubled from $128.6 billion in Q4'25 to a record $330.9 billion in Q1'26 across 8,464 deals, according to KPMG Private Enterprise's Venture Pulse.
- • Ten funding rounds of $2 billion or more contributed more than $206 billion, with seven US-based AI companies including OpenAI ($122 billion), Anthropic ($30.6 billion) and xAI ($20 billion) leading the total.
- • The Americas attracted $270.1 billion, over 80% of the global total, with the US alone accounting for $267.2 billion, more than double its previous record high.
- • Global exit value rose to $413.5 billion in Q1'26, the highest since Q4'21, driven mainly by M&A including SpaceX's acquisition of xAI, while IPO volume remained subdued at 83 listings.
- • US VC fundraising reached $47.8 billion in Q1'26, versus $66.7 billion in all of 2025, with larger funds above $500 million driving the gain.
Summary
Global venture capital investment more than doubled in the first quarter of 2026, rising from $128.6 billion in Q4'25 to a record $330.9 billion in Q1'26, according to the latest Venture Pulse report from KPMG Private Enterprise. The report attributes the surge to an unusual concentration of capital in large megadeals. Ten funding rounds of $2 billion or more contributed more than $206 billion to the global total, the best quarter on record for VC megadeals.
AI-focused companies captured the majority of these large rounds. Seven were US-based: OpenAI ($122 billion), Anthropic ($30.6 billion), xAI ($20 billion), Waymo ($16 billion), Databricks ($7 billion), Polymarket ($2.6 billion) and Shield AI ($2.3 billion). Software remained the leading sector, attracting a quarterly record of $225.2 billion, nearly matching its 2025 annual total and on track to surpass the 2021 record of $241.5 billion.
The Americas accounted for $270.1 billion, up from $78.6 billion in Q4'25, with the United States contributing $267.2 billion compared with $72.6 billion previously. KPMG said the increase was driven by a small number of outlier deals, most notably OpenAI, Anthropic and xAI. The region also recorded 66 new unicorns, up from 44 in Q4'25. In Europe, investment rose to $25.7 billion, a 14-quarter high, supported by six rounds of $1 billion or more, a record for the region, though momentum weakened in the final month of the quarter amid geopolitical uncertainty. In Asia, investment reached a 12-quarter high of $31.8 billion, led by $2 billion raises by China-based Rokid and Singapore-based DayOne.
Global exit value more than doubled to $413.5 billion from $184.3 billion in Q4'25, the highest since Q4'21. KPMG said M&A drove the increase, including SpaceX's acquisition of xAI. IPO activity was more muted, with $65.2 billion in transaction value across 83 new listings. US fundraising reached $47.8 billion in Q1'26, compared with $66.7 billion across all of 2025, while fundraising remained slow in Europe and Asia. KPMG flagged geopolitical tensions, higher oil prices and inflation concerns as key risks for Q2'26, which could keep US IPO activity subdued.
AI-focused companies captured the majority of these large rounds. Seven were US-based: OpenAI ($122 billion), Anthropic ($30.6 billion), xAI ($20 billion), Waymo ($16 billion), Databricks ($7 billion), Polymarket ($2.6 billion) and Shield AI ($2.3 billion). Software remained the leading sector, attracting a quarterly record of $225.2 billion, nearly matching its 2025 annual total and on track to surpass the 2021 record of $241.5 billion.
The Americas accounted for $270.1 billion, up from $78.6 billion in Q4'25, with the United States contributing $267.2 billion compared with $72.6 billion previously. KPMG said the increase was driven by a small number of outlier deals, most notably OpenAI, Anthropic and xAI. The region also recorded 66 new unicorns, up from 44 in Q4'25. In Europe, investment rose to $25.7 billion, a 14-quarter high, supported by six rounds of $1 billion or more, a record for the region, though momentum weakened in the final month of the quarter amid geopolitical uncertainty. In Asia, investment reached a 12-quarter high of $31.8 billion, led by $2 billion raises by China-based Rokid and Singapore-based DayOne.
Global exit value more than doubled to $413.5 billion from $184.3 billion in Q4'25, the highest since Q4'21. KPMG said M&A drove the increase, including SpaceX's acquisition of xAI. IPO activity was more muted, with $65.2 billion in transaction value across 83 new listings. US fundraising reached $47.8 billion in Q1'26, compared with $66.7 billion across all of 2025, while fundraising remained slow in Europe and Asia. KPMG flagged geopolitical tensions, higher oil prices and inflation concerns as key risks for Q2'26, which could keep US IPO activity subdued.
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