At the start of 2025, artificial intelligence continues to dominate the venture investment sphere, absorbing significant amounts of capital and attracting the keen attention of investors.
Artificial Intelligence in Venture Capital
According to JPMorgan's report, AI companies accounted for nearly 60% of all late-stage venture capital investments in the first quarter of 2025. In this context, AI not only dominates news headlines but also absorbs the majority of financial flows.
Record Valuations and Expectations for AI Startups
AI startups have taken advantage of favorable conditions, receiving valuations 12% to 150% higher than average figures. The volume of investments in AI projects far exceeds that of their non-AI counterparts, creating high expectations regarding automation and scalability. However, as the market indicates, such financial exuberance also carries the risk of excessive speculation.
Signs of Contraction in Venture Capital
Despite the dominance of AI, the overall venture capital market shows signs of contraction. Transaction sizes have dropped by 31%, and overall valuations have decreased by 37%. This underscores the unstable state of the market, where AI captures attention, but the overall dynamics indicate instability.
The surge in AI investments presents both opportunities and risks in the form of a potential speculative bubble. Analogies with past experiences in crypto investments highlight the importance of vigilance regarding trends in the market.
