VCs poured $680B into startups this year, but early deal counts fell to multiyear lows

Venture capital spending reached historic highs in 2026, approaching nearly $680 billion through the third quarter. However, the surge masks a growing divide across the startup ecosystem. While the total volume of money increased, investors wrote fewer checks, leaving seed and early-stage companies with less access to capital.

Megarounds Dominate the Market

The record funding pace has been driven almost entirely by the largest deals. Market data shows that smaller funding rounds, defined as deals under $100 million, have essentially flatlined since 2023. In contrast, rounds of $1 billion or more surged.

Massive financings for OpenAI and Anthropic fueled the trend during the first half of the year. The concentration at the top persisted into the third quarter, where about one-third of all global venture funding went to just 27 firms raising billion-dollar-plus checks.

Fewer Deals for Early Startups

In North America, total venture dollars jumped 50% year over year to reach $92 billion in the third quarter. Despite the influx of money, the number of completed deals dropped 16% compared to the prior year, marking the lowest quarterly count since 2023. The slowdown in deal volume concentrated heavily in seed and early-stage rounds, while late-stage transactions saw year-over-year gains.

The Series B stage highlighted this imbalance. Although total dollars invested in U.S. Series B rounds reached a multiyear high, the number of completed Series B deals is on track for a multiyear low. Similar dynamics affected seed and Series A tiers, with money focusing on larger checks for fewer companies.

Upcoming Public Market Test

A major test for investor sentiment looms this month. Anthropic is scheduled to launch an initial public offering that could value the firm at $2 trillion. The public market’s response will indicate whether investors remain eager to back massive artificial intelligence companies, though analysts note that high valuations at the top do not necessarily mean capital will spread back to early-stage builders.