Greetings, Time period Sheeters. That is finance reporter Luisa Beltran, subbing for Allie.
It’s time to take the temperature of the enterprise and personal fairness sectors, and we’ve bought some new numbers.
VC investing in startups is on the upswing, with enterprise companies pouring $91 billion into firms throughout the second quarter, a roughly 11% improve year-over-year, in line with enterprise knowledge and predictive intelligence agency Crunchbase. Second quarter’s $91 billion represents a 20% drop from the primary quarter when startups raised $114 billion. Nevertheless, Q1 was the strongest quarter for enterprise funding since Q2 2022. (First quarter additionally included OpenAI’s $40 billion financing, the biggest personal spherical ever.)
Almost half of Q2’s $91 billion got here from one sector: AI, which kicked in $40 billion. (Meta’s $14.3 billion funding in Scale AI in June generated greater than one-third of AI sector funding.) Healthcare and biotech got here in second with $14.8 billion in funding, whereas monetary companies delivered $11.3 billion for third place.
“International funding has elevated yr over yr for the previous three quarters, pushed primarily by billion-dollar-plus rounds into AI analysis labs in addition to knowledge and infrastructure suppliers within the sector,” Crunchbase stated within the report.
Almost one-third of all capital in Q2 went to 16 firms—together with Anduril Industries’ $2.5 billion spherical, and the separate $2 billion fund rounds for Considering Machine Labs and Secure Superintelligence.
Startup M&A was additionally lively. Q2 noticed $50 billion in reported exit worth, the second strongest quarter since 2021. The whole was down from $71 billion within the first quarter, which included Google’s $32 billion purchase of Wiz. OpenAI was essentially the most lively and largest acquirer of startups in Q2, scooping up 4 firms, together with Jony Ive’s io for $6 billion and Windsurf for $3 billion.
PE on the sidelines
On the personal fairness aspect of issues, fundraising amongst PE companies continues to tug. International PE funds have collected $223 billion to this point in 2025, on tempo to fall wanting final yr’s efficiency, when PE swimming pools gathered $551 billion for all of 2024, in line with analysis and knowledge agency PitchBook. US funds have raised $149 billion to this point in 2025, additionally beneath final yr’s tempo, when PE swimming pools collected $333.4 billion.
The slowdown in PE fundraising is because of fewer mergers and a decline in IPOs. PE companies have struggled to promote their investments, which implies they’ll’t ship a reimbursement to their traders and this causes their very own fundraising to stall. PE companies entered 2025 anticipating a powerful yr, or not less than a rebound, in mergers. However volatility on account of President Trump’s Liberation Day tariffs brought on many offers and IPOs to be placed on maintain in April. Whereas new points started rebounding in June, M&A stays sluggish.
U.S. personal fairness managers have greater than $1 trillion in dry powder, or uninvested, dedicated capital, in line with Kyle Walters, personal fairness analysis analyst at PitchBook. Many PE companies are “[sitting] on the sidelines, selecting to not promote most of their belongings in what they deem to be an unfavorable exit market,” Walters stated. (The PE dry powder complete determine is as of Sept. 30, 2024, and has probably dropped since then, Walters stated. Enterprise companies had $701.2 billion in uninvested capital, he stated.)
To this point in 2025, PE funds have clinched $339.8 billion in complete exit worth, which is on tempo to surpass final yr’s complete of $384.2 billion. A handful of huge offers, together with pure fuel exporter Enterprise International’s $58.7 billion IPO and WorldPay’s $24.3 billion sale to International Funds, have helped enhance exit worth this yr.
“We have to see a powerful pick-up when it comes to exit depend if we wish to see the fundraising slowdown come to an finish. And given that almost all exit exercise is in a wait-and-see mode, you probably gained’t see fundraising exercise choose again up till 2026,” Walters stated.
See you Wednesday,
Luisa Beltran
X: @LuisaRBeltran
E mail: luisa.beltran@fortune.com
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Enterprise Offers
– Talon.One, a Berlin-based enterprise loyalty and promotion software program firm, raised $135 million in funding. Silversmith Capital Companions and Meritech Companions led the spherical and have been joined by present investor CRV.
– CarOnSale, a Berlin-based B2B market for used automobile buying and selling, raised €70 million ($82 million) in Sequence C funding. Northzone led the spherical and was joined by present traders HV Capital, Perception Companions, Stripes, and Creandum.
– QEDMA, a Tel Aviv-based quantum computing firm, raised $26 million in Sequence A funding. Glilot Capital Companions led the spherical and was joined by IBM, Korea Funding Companions, present investor TPY Capital, and others.
– Bumo, a Pasadena, Calif.-based little one care market, raised $10 million in seed funding. Offline Ventures and True Ventures led the fund and have been joined by Goodwater Capital, Market Capital, and others.
– Fantasy Life, a New York Metropolis-based on-line sports activities and gaming firm, raised $7 million in seed funding. LRMR Ventures and SC Holdings led the spherical and have been joined by Eberg Capital, Bolt Ventures, Wasserman Ventures, and others.
– BridgePort, a New York Metropolis-based middleware software program supplier for crypto buying and selling, raised $3.2 million in seed funding. Additional Ventures led the spherical and was joined by Virtu, XBTO, Blockchain Founders Fund, Enjoyable Truthful Ventures, and Humla Ventures.
Personal Fairness
– Thoma Bravo agreed to amass Olo, a New York Metropolis-based SaaS restaurant platform, in an all-cash deal valuing the corporate at roughly $2 billion.
–Tikehau Capital raised €1 billion ($1.17 billion) for its portfolio firm Egis, a Paris-based architectural and civil engineering agency.
–Growth Companions Worldwide, agreed to amass a $190 million minority stake in Alameda Healthcare, an Cairo-based personal healthcare group.
– TEAM Applied sciences, backed by Arlington Capital Companions, acquired Duke Empirical, a Morgan Hill, Calif.-based developer and producer of cardiovascular medical units. Monetary phrases weren’t disclosed.
–ORIX USA, a subsidiary of Japan-based ORIX Company, agreed to amass a majority stake in Hilco International, a Northbrook, Ailing.-based diversified monetary companies firm. Monetary phrases weren’t disclosed.
Exits
– The Chamberlain Group, backed by Blackstone, agreed to amass Arrow Tru-Line, an Archbold, Ohio-based producer and provider of storage door {hardware}, from MiddleGround Capital. Monetary phrases weren’t disclosed.
OTHER
– TPG Capital acquired a 70% stake in DIRECTV, an El Segundo, Calif-based satellite tv for pc tv firm, from AT&T for $7.6 billion in money.
– Lightcast acquired Rhetorik, a Wokingham, UK-based B2B organizational intelligence and knowledge supplier. Monetary phrases weren’t disclosed.
FUNDS + FUNDS OF FUNDS
–Pink Dot Capital Companions, a Tel Aviv-based enterprise capital agency, raised $320 million for its third fund centered on early-stage progress firms throughout numerous sectors.
PEOPLE
–Olympus Companions, a Stamford, Conn.-based personal fairness agency, promoted Matt Bujor to principal, Connor Wooden to principal, Courtney Dunne to vp, and Marty Durkin to vp.
–Partech, a Paris-based enterprise capital agency, promoted Alison Imbert to associate, Moritz Steinbrecher to principal, and Ariadne Lemieux-Cumberlege to senior affiliate on the Seed group. The agency promoted Simone Riva to associate and Julia Najman to senior affiliate on the Enterprise group.
–Stonepeak, a New York Metropolis-based personal fairness agency, added Cindy Marrs as a senior advisor. Beforehand, she was at Wellington Administration.
