Explosive AI growth is changing the math of startup investing

Leading AI startups are growing so fast that they’re forcing investors to rethink how they evaluate firms in the sector, venture capitalists say.

San Francisco-based Anysphere’s AI coding assistant Cursor reportedly hit US$100 million in annual recurring revenue in January, just 14 months after launch. The firm’s revenue run rate had topped US$500 million by June. Stockholm-based Lovable Labs, which also makes AI development tools, claimed in May to have reached US$50 million in annual recurring revenue in six months. READ MORE

Venture Capital Market to Reach USD 1,283.27 Billion by 2032

The global Venture Capital (VC) market was valued at USD 250.26 billion in 2023 and is projected to reach USD 1,283.27 billion by 2032, expanding at a CAGR of 20.1% during the forecast period from 2024 to 2032.

The market's robust growth is fueled by surging investment in technology startups, rising entrepreneurial activity worldwide, and the proliferation of disruptive innovations across industries. READ MORE

Valuation Doubts Challenge Private Equity

Private equity giants like Blackstone Inc., Apollo Global Management, and other major players in private capital have committed to pouring hundreds of billions of dollars into Europe over the next ten years. However, despite these ambitious plans, the short-term outlook for leveraged buyouts and private equity deals remains uncertain and challenging.

‍Recent months offered some optimism for M&A bankers, as a few high-profile corporate transactions were finalized and concerns surrounding U.S. President Donald Trump’s trade policies temporarily eased. Still, many professionals in the private equity world are far from optimistic. READ MORE

US is propping up climate tech VC deals—for now

Venture capital investments in climate tech startups are still sinking—and growing uncertainty in the crucial North American market is throwing a new wrench into the sector.

Worldwide, climate tech VC investment decreased for the third consecutive year in 2024 to $37.8 billion, according to a new PitchBook research report. That amount was down 37.6% from the sector’s 2021 peak, and 21.7% from 2023. READ MORE

When not to take VC advice

One often overlooked skill for VC-backed founders is learning to discern good advice from bad.

Unlike in the US, many European VCs haven’t been operators before, so the advice they give doesn’t always come from direct experience. Though this is starting to change — with more investors stepping into operator roles to gain hands-on experience, some with the intention to return to VC later — founders tell me that investors who haven’t built companies themselves often give misguided advice. READ MORE

A Woman-Led VC Firm Fuels The Future Of The Space Economy

Stellar Ventures is bringing deep technical expertise, conviction-based investing, and a fresh perspective to the booming space economy. Led by aerospace engineer and entrepreneur Celeste Ford, the woman-led venture capital firm is backing early-stage space startups with more than just funding. As costs to access space plummet and commercial applications soar, Stellar Ventures is helping shape the next generation of space technology companies poised to transform communications, defense, manufacturing, and more. READ MORE

DOJ Declination of Private Equity Firm Underscores Need for Robust M&A Due Diligence

On June 16, 2025, the U.S. Department of Justice (“DOJ”), including its National Security Division (“NSD”) and the U.S. Attorney’s Office for the Southern District of Texas, announced that they would not prosecute White Deer Management LLC (“White Deer”), a Texas‑based private equity firm, in connection with sanctions and export control violations committed by Unicat Catalyst Technologies LLC (“Unicat”), a portfolio company it had acquired in 2020. This declination marks the first application of the DOJ’s M&A Safe Harbor policy, which encourages acquiring companies to voluntarily self‑disclose misconduct identified post‑acquisition. READ MORE

When Private Goes Public: Inside The S&P Listed Private Equity Index

The private equity (PE) industry has experienced a notable shift with a growing wave of high-profile public listings worldwide. This trend traces back to the mid-2000s, with Blackstone (BX) being among the first major firms to list its shares on the NYSE. This unlocked an era where industry giants such as KKR (KKR) and Carlyle (CG) followed suit with their own IPOs. A decade later, European PE firms dominated headlines with their own IPOs. This blog explores the trend of public listings within the private markets space and dives into the S&P Listed Private Equity Index as a tool to track and gain insight into this expanding market segment. READ MORE

Private equity wants to get into your 401(k). Trump might let them.

The private equity industry wants to get into your 401(k). The industry is lobbying the Trump administration to issue an executive order that would open the way for retirement plans to add private equity investments. The effort brings to mind Groucho Marx’s famous observation, “I don’t want to belong to any club that will accept me as a member.” Why would this supposedly elite investment class want the Trump administration to make it easier for small-time savers to invest in their offerings?

The answer, as you might suspect, is nothing good. READ MORE

How AI is reshaping the venture capital landscape

Artificial intelligence is no longer a distant concept - it is a transformative force that is redefining industries and reshaping the rules of innovation and investment. In venture capital, its impact is particularly profound, influencing not only what firms invest in, but how they operate, evaluate, and support the companies in their portfolios.

As part of an ongoing editorial initiative, CTech has launched the VC AI Survey, a series of in-depth interviews with dozens of leading venture capital investors to understand how AI is affecting their business routines, operational strategies, and long-term thinking. This project sheds light on how AI is embedded in the daily workflow of venture capital funds, offering a rare look at how technology is rewriting the internal playbook of the investment world. READ MORE

From Deal Sourcing to Exits: The AI Advantage in Venture Capital

Artificial Intelligence is fast becoming the next big disruptor in the venture capital landscape, not just as an investment theme but as a transformative internal tool. In India, firms are doubling down on tech-led diligence and proprietary data-driven strategies. As AI adoption deepens, it promises to sharpen competitive edges, even as challenges around infrastructure and talent persist.

According to a recent report by Gitnux, 42 per cent of VC firms globally use AI for deal sourcing, while 68 per cent of the firms believe that this technology will significantly improve investment decision accuracy. The report further stated that in deal sourcing and market research, proprietary deal-scanning tools and analytics platforms are adopted by 75 per cent of top-tier VC firms worldwide. READ MORE

Private equity sits on $1 trillion amid uncertainties, M&A stalls, PwC says

Private equity firms are holding about $1 trillion in unsold assets, PricewaterhouseCoopers (PwC) said on Wednesday — capital that, in a typical market environment, would have been returned to investors.

High interest rates in the United States, President Donald Trump’s on-again, off-again approach to tariff policy, and geopolitical uncertainties have eroded company valuations and contributed to firms holding onto portfolio firms far longer than expected. READ MORE

How Private Equity Killed the American Dream

In her new book, Bad Company: Private Equity and the Death of the American Dream, journalist and WIRED alum Megan Greenwell chronicles the devastating impacts of one of the most powerful yet poorly understood forces in modern American capitalism. Flush with cash, largely unregulated, and relentlessly focused on profit, private equity firms have quietly reshaped the US economy, taking over large chunks of industries ranging from health care to retail—often leaving financial ruin in their wake. READ MORE

What the Wright Brothers can teach science entrepreneurs about how to survive a funding pullback

What happens when venture capital and government pull back from science entrepreneurs at the same time? Many scientists think we’re about to find out, and are looking at how we can preserve our country’s innovative leadership. While others are pulling back, at Activate we’re leaning in and asking, “What should we teach the scientist founders we support so they can find the opportunity in this crisis?” READ MORE

A Tale Of Two Cities In Venture Capital

“It was the best of times, it was the worst of times.” On the heels of Super Venture & Super Return Berlin, and a LP/GP summit in Montreal organized by Inovia, I wanted to reflect on what felt like a panoramic view of the industry, across 1) managers of VC funds 2) startups raising capital and 3) incumbents in the public markets. What struck me most wasn’t any one deal or datapoint, but the duality of two starkly different realities.

The technology industry today, for startups and venture capital firms alike, is best described as a tale of two cities. READ MORE

AI Roll-Up Deals Accelerate as Top VC Firms Edge Towards Private Equity

The AI roll-up has officially gone mainstream.

Large VC firms like General Catalyst, Thrive Capital, and 8VC are increasingly running the private equity playbook of buying legacy businesses and trying to improve their performance. The special sauce is AI, these investors believe, and half-a-dozen top-tier firms have now backed efforts to combine established companies in the same market and supercharge them with artificial intelligence. READ MORE