Global VC investment remains strong, driven by AI and supported by increasing exit activity

INDIA: Global venture capital (VC) investment rose from $112 billion in Q2’25 to $120 billion in Q3’25—marking the fourth consecutive quarter of robust investment, according to the latest edition of Venture Pulse from KPMG Private Enterprise, a quarterly report tracking investment trends globally across major regions around the world.

The Americas led with $85.1 billion, while Asia saw muted investment at $16.8 billion. AI continued to dominate VC activity, with significant funding rounds for AI model development and applications. The US accounted for most of the VC investment in the Americas, while Europe saw solid growth. Global exit value climbed to $149.9 billion, the highest since Q4’21, driven by renewed IPO activity. Looking ahead to Q4’25, global VC investment is expected to remain stable, with AI continuing to dominate. Robotics and defense tech will also continue to be focus areas.

The last time the global VC market saw $100 billion+ in investment for four quarters in a row was between Q4’21 and Q3’22. While overall deal volume eased slightly—reflecting a typical seasonal slowdown across the Americas and Europe—the broader market trajectory remained positive. Investor sentiment strengthened steadily throughout the quarter, buoyed by renewed optimism around liquidity pathways and a gradual reopening of exit markets in the Americas and Asia.

During Q3’25, the focus of VC investors globally concentrated on large deals.

AI continued to dominate VC investment activity in other regions as well in Q3’25. In addition to startups engaged in foundational AI model development, venture capital investors worldwide demonstrated increasing interest in AI-powered applications and sector-specific innovations. Beyond AI, defense technology and space technology garnered significant attention during the quarter, largely due to persistent geopolitical tensions. Health technology, quantum computing, and alternative energy also maintained strong investor interest throughout Q3’25.

Regionally, the Americas led global VC investment, attracting $85.1 billion across 3,474 deals in Q3’25. Within the Americas, the United States accounted for $80.9 billion across 3,175 deals. Europe attracted the second-largest share of VC funding during the quarter—$17.4 billion across 1,625 deals—overtaking Asia, where VC investment remained somewhat sluggish at $16.8 billion across 2,310 deals.

“AI is obviously the biggest ticket right now for VC investors globally. If startups aren’t embracing AI in some way, shape, or form, it’s very difficult for them to attract attention,” said Conor Moore, Global Head, KPMG Private Enterprise, KPMG International. “Many of the industries where we’re seeing strong investment are being driven in part by AI-driven solutions—like defencetech and healthtech—or by their importance to the AI ecosystem—like energy and datacentres.”

Q3’25 — Key highlights:

• Corporate VC participating investment increased from $56.1 billion in Q2’25 to $58.6 billion in Q3’25. The United States accounted for a large share of this total ($37.7 billion), marking its fourth consecutive strong quarter of CVC-associated investment. Europe reached a five-quarter high of $9.5 billion in CVC participating investment during Q3’25, while Asia continued to see muted CVC-related investment at $9.1 billion.
• Software remained the leading sector for VC investment.
• Global exit value climbed from $119.2 billion in Q2’25 to $149.9 billion in Q3’25—the highest level seen since Q4’21. At a regional level, U.S. exits rose from $71.0 billion to $74.5 billion quarter-over-quarter, while Asia saw a sharp increase from $28.7 billion to $38.0 billion. Europe also recorded significant growth, with exit value rising from $17.3 billion to $27.8 billion between Q2’25 and Q3’25.
• Global VC fundraising remained exceptionally weak, totaling just $80.7 billion at the end of Q3’25—putting it on pace to fall below 2024’s eight-year low of $196.1 billion.

Key highlights from India:

• India sees VC investment slow in Q3’25 amid an uncertain geopolitical environment.
• India experienced a banner quarter for exits in Q3’25, with exit value surging to a high not seen in at least seven years.
• While interest in India remains high, VC investors have found it difficult to predict what might happen day-to-day, leading them to hold back from making any major funding decisions.
• Despite the soft VC investment in Q3’25, there continued to be optimism in the market given the growth in startup exit activity — particularly in terms of IPO exits.
  • During the quarter, IPO activity was quite strong compared to previous quarters.
• Given India’s strong macros and vibrant capital market, should trade uncertainties be resolved, there is good optimism that VC investment will begin to rebound. Further IPO activity is also expected over the next few quarters in India.

Commenting on the India findings, Nitish Poddar, Partner and National Leader, Private Equity, KPMG in India, said, “VC investment results in India this quarter were driven by the speed bump that was the US tariffs, but people expect that by the end of November, that will settle. And macros are still strong, the capital markets are still vibrant, and a lot of capital has been raised that will need to get deployed — so funding should increase as uncertainties calm. But investors are going to be focused heavily on the path to profitability and cash flows because without those, you won’t get a capital market exit.”

AI continues to power the VC market globally

VC investors continued to double down on AI in Q3’25, with companies developing AI models and platforms attracting many of the largest funding rounds of the quarter. The surge in AI investment extended well beyond the U.S. and Europe. Beyond these headline transactions, AI-focused startups across regions continued to attract significant VC funding rounds, reflecting the growing breadth and attractiveness of AI-focused solutions.

One of the most encouraging developments of Q3’25 was the revival of IPO markets—particularly in the US—which provided long-awaited exit opportunities after years of subdued activity. The number of successful listings not only validated valuations in select high-growth sectors but also reinforced investor confidence that the exit window for VC-backed companies is reopening. For VC investors, the combination of sustained capital deployment and healthier exit conditions suggests a more constructive and balanced venture capital environment heading into 2026.

Steady course expected heading into Q4’25

Looking ahead to Q4’25, global VC investment is expected to remain relatively stable, fueled by continued momentum in AI model development, industry-specific AI applications, and AI infrastructure. Robotics is also anticipated to gain further traction among VC investors over the coming quarter. Given AI’s dominance, companies without AI-driven capabilities could find it increasingly challenging to attract funding. However, in regions such as Africa, Latin America, and Southeast Asia, fintech is expected to remain the primary investment focus.

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MUMBAI: SCHOTT Pharma, a pioneer in drug containment and delivery solutions, announced today that TPG, a leading global alternative asset management firm, has entered into a binding agreement to acquire a 35% stake in its joint venture, SCHOTT Poonawalla, from Serum Institute of India (SII).  SCHOTT Poonawalla is a joint venture of SCHOTT Pharma and SII, part of the Cyrus Poonawalla Group and a global leader in vaccine manufacturing, dedicated to providing affordable vaccines worldwide. TPG Growth, TPG’s middle market and growth equity platform, is funding the investment, along with Novo Holdings as a co-investor. Following the transaction, SII will retain a minority stake in the company.

With deep healthcare investing experience and local expertise in India, having TPG join the partnership alongside SCHOTT Pharma and Serum Institute of India represents a significant milestone in SCHOTT Poonawalla’s growth, equipping the company with additional resources and strategic insight to support its long-term global ambitions.

SCHOTT Poonawalla designs advanced drug containment and delivery solutions for pharmaceutical and biotechnology customers. The company’s portfolio features a large range of products, including cartridges for auto-injector pens, prefillable syringes for a wide variety of biologics, vials, ampoules, as well as regulatory services for biotech and pharmaceutical companies, and Contract Development and Manufacturing Organizations (CDMOs).  

“We are excited to partner with SCHOTT Pharma and Serum Institute of India and build upon SCHOTT Poonawalla’s market leadership position as India’s largest injectables-focused drug containment solutions company,” said Bhushan Bopardikar, Business Unit Partner at TPG Growth. “On the back of a world-class manufacturing infrastructure in India, SCHOTT Poonawalla has developed an industry-leading reputation by offering a comprehensive product portfolio of the highest quality for over two decades. We look forward to partnering with the senior leadership team as they continue to innovate and improve the quality and standards of pharmaceutical drug containment solutions.”

“Partnering with TPG marks an important step for us,” said Adar Poonawalla, CEO of Serum Institute of India. “Their experience in healthcare investing and global network makes them a strong partner as we scale and explore new opportunities. Our collaboration with SCHOTT Pharma will continue, ensuring supply chain resilience and advancing innovation in vaccine packaging and delivery.”

“India continues to be one of the most dynamic and strategically important manufacturing hubs for SCHOTT Pharma. Welcoming TPG to the partnership marks an exciting step forward in our collaboration. SCHOTT Pharma’s innovation capabilities and pure-play focus on injectables will be complemented by TPG’s local market expertise, relationships, and experience from its strong presence in the Indian healthcare sector. As we continue to expand our local production capacities and leading role in the Indian market, we are confident that this step will further enhance our global footprint and deliver exceptional value to our customers,” said Andreas Reisse, CEO at SCHOTT Pharma.

“Now more than ever, our pharmaceutical customers are relying on us to supply next-generation cutting-edge drug delivery solutions, as they continue to innovate, expand operations, and supply complex drugs,” said Ashok Saxena, Managing Director, SCHOTT Poonawalla. “We are excited to welcome TPG onboard as an investor, and are confident that their proven track record of successfully driving healthcare businesses in the Indian market will greatly benefit SCHOTT Poonawalla.”

The transaction is subject to customary closing conditions and is expected to close within the first half of 2025.

Jefferies acted as the financial advisor to TPG. AZB & Partners acted as the legal advisors to TPG and SCHOTT Pharma. J. Sagar Associates (JSA) acted as the legal advisors to Serum Institute.

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CHENNAI: Aquaconnect, a full-stack aquaculture platform with embedded fintech that leverages satellite remote sensing and artificial intelligence to improve the efficiency of stakeholders in the fish and shrimp farming industry, completed a $4 million (INR 33 Cr) Pre-Series B funding round led by S2G Ventures.

Aquaconnect will utilize the new capital to continue scaling its operations and enhance its coverage of the major aquaculture production states in India. The company has recently expanded its footprint in West Bengal, Uttar Pradesh, and Assam, and achieved 4x revenue growth in the last fiscal year.

With this new funding, Aquaconnect also seeks to double its Aqua Partner network in the next 6 months, strengthening post-harvest linkage solutions and expanding its product portfolio with farmer-focused innovations, formal credit services, and new products to amplify its reach and impact. Aqua Partners are rural entrepreneurs who provide last-mile assistance to farmers while delivering the company’s services, including farm advisory, access to feed and other farm inputs, and post-harvest market linkage to domestic and international buyers.

Commenting on the Pre-Series B funding round, Rajamanohar Somasundaram, Founder & CEO of Aquaconnect, said, “The investment from S2G reinforces our mission of transforming the Indian aquaculture landscape through a  phygital approach. The funds come at a critical juncture as we gear up for our next phase of growth to capture new opportunities, with an intense focus on expanding our operations in major markets. This expansion is more than just scaling. It’s about deepening our impact within the farming communities by strengthening our Aqua Partners and seafood buyer network, thus creating a more sustainable ecosystem while simultaneously enhancing the service offerings and innovative tech-driven solutions to strengthen our position in the aquaculture sector.”

“Aquaconnect’s full-stack solution is revolutionizing aquaculture in India through reliable access to a diverse set of farming input products, working capital financing, marketplace commerce, and streamlined logistics,” said Kate Danaher, Managing Director at S2G Ventures. Kate further added, “Aquaculture is the fastest growing method of food production in the world and a critical solution for long-term food security. Platforms that contribute to the viability of the sector through sustainable farming practices and trade are paramount. As a leading organization in the second largest aquaculture market in the world, we believe Aquaconnect is ideally positioned to capture meaningful market share and contribute to a future of sustainable growth across the sector.”

Aquaconnect raised $15 million in a Series A funding round last year from Lok Capital, Louis Dreyfus Company (LDC) Ventures, Suneight Investments, AgFunder, Omnivore, Rebright Partners, Flourish Ventures, and Hatch Blue.

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JAIPUR: Celebal Technologies, a premier software consulting and delivery organization, specializing in cutting-edge technologies such as AI, Big Data, Data Science, and Enterprise Cloud, today announced that it has secured a $32 million minority growth investment from Norwest Venture Partners, a leading venture and growth equity investment firm. This is Celebal Technologies’ first institutional investment and marks the beginning of a new chapter in the company’s growth story. The investment will strengthen its foothold in existing markets across North America, India, and Asia Pacific as well as fuel its expansion in new territories across Europe, the Middle East, and Japan. Some of the funds would be utilized towards increasing delivery capacity and building industry-focused solution accelerators.

Founded by tech visionaries, Anupam Gupta and Anirudh Kala, Celebal Technologies is a high-growth firm that employs 1,600+ software engineers delivering new-age solutions to over 100 clients globally. The company’s unique expertise lies at the intersection of “Traditional Enterprise” and “Modern Cloud Innovation”. Celebal Technologies is a Premier Global Partner of Microsoft and Databricks. It offers differentiated services and accelerators on the Microsoft Azure and Databricks platforms to drive continuous innovation and empower enterprises in their digital transformation journeys across various industries such as manufacturing, financial services, energy, CPG, retail, and healthcare. Celebal Technologies was recognized as the winner of the 2022 Microsoft India Partner of the Year for the second consecutive year and the 2022 Databricks Partner of the Year for the Asia Pacific and Japan.

“We are excited about our partnership with Norwest Venture Partners, who have an enviable track record of building scaled new-age technology companies globally. They understand our business and are passionate about companies in the next-gen Cloud, Analytics, and AI services segments,” said Anupam Gupta, co-founder of Celebal Technologies. “In terms of market potential, we feel we’ve just scratched the surface and this partnership will enable us to pursue growth opportunities in the Microsoft and Databricks ecosystem.”

“We are pleased to welcome Celebal Technologies to the Norwest family,” said Shiv Chaudhary, Managing Director of Norwest Venture Partners. “Celebal Technologies continues to demonstrate strong, differentiated execution and team culture. The company is laying the foundation for further scale and capturing the very large global market opportunity.”

“We are bullish on the growth of the digital technology services sector and offshore delivery. With a strong DNA of innovation-led culture and customer-centricity, backed by strong partnerships with Microsoft and Databricks, we are well-positioned to capitalize on new opportunities and serve our fast-growing roster of clients,” said Anirudh Kala, co-founder, and CEO of Celebal Technologies. “Norwest’s deep business and technology services sector expertise, along with its global portfolio presence, complements Celebal Technologies’ strengths and ability to grow the business in key markets and in new domains like sustainability.”

Avendus Capital acted as the exclusive financial advisor and Shardul Amarchand Mangaldas & Company served as the legal advisor to Celebal Technologies. Shardul Amarchand Mangaldas & Company served as the legal advisor to Norwest Venture Partners.

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