September 2025, By AlternativeSoft

Venture capital fundraising in the first half of 2025 has hit its weakest point in nearly a decade, according to Venture Capital Journal. Firms raised $41.6 billion worldwide in H1 2025 — the lowest since H1 2017 and well below the $105 billion raised just three years earlier.

A Three-Year Decline

Fundraising momentum has steadily declined:

• H1 2022: $105 billion
• H1 2023: $80 billion
• H1 2024: $60 billion
• H1 2025: $41.6 billion

The number of venture vehicles raised has also fallen sharply. Just 453 funds closed in H1 2025, compared with 899 in H1 2021. At the same time, the average fund size shrank to $124 million, the smallest in at least six years.

Regional Breakdown

Despite the slowdown, North America continues to dominate, accounting for 62% of capital raised ($25.6 billion). Multi-regional funds captured 18%, followed by:

• Europe: 13%
• Asia-Pacific: 6%
• MENA, Latin America, Sub-Saharan Africa combined: 1%
  
  

Large Funds Still Command Attention

While overall fundraising has softened, the largest players still attract significant capital. The 10 largest funds closed in H1 2025 represented nearly one-third of the total raised ($12.9 billion). Among them:

• Founders Fund Growth III – $4.6B
• Recognize Partners II – $1.7B
• Cathay Innovation Fund III – $1.1B
• Emergence Capital Partners VII – $1B
• Pearl Energy Investments IV – $1B

Meanwhile, funds in the market are seeking a staggering $266 billion globally, with more than half of that targeting North America. Giants like Andreessen Horowitz ($20B AI fund) and General Catalyst ($5B) highlight that while mid-sized managers face headwinds, mega-funds remain resilient.

Why Managers Need to Rethink Capital Raising

With fundraising shrinking and competition intensifying, smaller and mid-sized managers can no longer rely on traditional networks alone. Allocators are more selective, focusing on managers who can demonstrate differentiated strategies, strong track records, and — crucially — visibility among institutional investors.

This is where AlternativeSoft’s Fund Marketplace provides a distinct advantage.

Get Seen by 150+ Allocators with AlternativeSoft

AlternativeSoft’s Fund Marketplace connects hedge funds, venture funds, and alternative managers directly with over 150 allocators actively seeking opportunities. By listing on the platform, managers gain exposure to family offices, pension funds, and institutional investors — expanding their reach beyond closed networks.

For managers struggling to stand out in a crowded, capital-constrained environment, visibility is no longer optional — it’s mission critical. AlternativeSoft makes it possible to:

• Showcase your fund to professional allocators worldwide.
• Highlight strategy, performance, and differentiation with clarity.
• Gain access to decision-makers looking for new managers, not just established giants.

Final Thoughts

The fundraising slowdown of 2025 underscores the importance of efficiency and visibility. While mega-funds will continue to attract outsized commitments, the broader market is becoming tougher for emerging and mid-sized managers.

For firms looking to break through, AlternativeSoft’s Fund Marketplace is a proven way to get in front of serious allocators and maximize fundraising potential, even in challenging times.

Register today on AlternativeSoft’s Fund Marketplace and get access to over 150+ allocators. It takes just a few minutes to get started — and you can begin raising capital and seeing results today.