If you’re not an AI startup, good luck raising money from VCs

According to a recent PitchBook report, the venture capital (VC) investment landscape is heavily skewed towards AI startups. The data shows that AI is poised to account for more than 50% of all VC funding in 2025, marking the first time this milestone has been reached. This trend underscores the significant investor interest and confidence in the potential of AI technology. Startups focused on developing AI-powered solutions are receiving an increasingly larger share of the available VC funding, making it increasingly challenging for non-AI startups to secure investment. The dominance of AI in startup funding reflects the rapid advancements and widespread adoption of AI across various industries, from healthcare and finance to logistics and consumer services. Investors are eager to capitalize on the transformative power of AI and the promising growth opportunities it presents. This shift in VC funding patterns highlights the need for non-AI startups to differentiate themselves and potentially explore alternative funding sources, as the competition for traditional VC investment becomes more intense.