Q3 2025 Emerging Tech Indicator (PitchBook)

Summary

• ETI funding across pre-seed, seed, and early-stage deals involving the top 15 VC firms reached $6.1 billion across 215 deals in Q3 2025.p.3
• ETI rounds captured 21% YTD of total venture capital deployed in pre-seed, seed, and early-stage deals, compared to the 2021-2024 annual average of 14.4%.p.3
• AI remained the leading ETI vertical for the seventh consecutive quarter, attracting $2.2 billion across 52 core deals.p.3
• Industrial tech set a record in Q3 2025, reaching $782.4 million across 17 deals.p.3
• Fintech ETI funding totaled $591.1 million across 21 deals in Q3 2025, with average deal sizes reaching a record $32.8 million.p.22

Key insights

1. In Q3 2025, median ETI pre-seed and seed rounds were 2.8x the broader venture ecosystem median, while early-stage rounds reached 6.1x the industry size.p.5
2. Core AI and vertical-specific AI applications together accounted for 60.7% of total ETI capital deployed and 57.7% of all ETI deals closed in Q3 2025.p.13
3. Industrial tech expanded its share of VC investment among top investors from 2% in 2024 to 6.7% in 2025, spurred by expanding defense budgets and domestic production trends.p.3
4. Average deal sizes in fintech rose to $32.8 million in Q3 2025, up from an eight-quarter average of $15.9 million, driven by premiums paid for AI-enabled startups.p.22
5. China registered only two ETI deals since 2024, down from 73 deals between 2021 and 2023, reflecting a shift toward US-aligned countries such as India, the UK, and Israel.p.33
6. Top venture firms are increasingly making direct investments in traditional, less tech-centric healthcare service networks transitioning to value-based care.p.25