Through Q3, a top 15 VC firm has participated in 3.5% of all pre-seed, seed and early-stage rounds. While this figure remains in line with previous years, the total value of these rounds now accounts for a record 21% of all capital deployed at these stages—compared to 2021-2024 annual average of 14.4%.

This rising share of capital from top firms highlights shifting dynamics in early-stage venture investing. With deal sizes and valuations at record highs, large, multi-stage investors are playing an outsized role.

 

These firms, which we rank based on a methodology considering exit rates and future valuation growth of past investments, are leveraging their size and access to highly competitive rounds to place larger early-stage bets.

Rounds with top investor participation now command a median deal size at 2.8 times the overall venture median at the pre-seed and seed stages and 6.1 times the median for Series A and B.

As top investors' portfolio companies are equipped with significantly more capital, a distinction is growing between this unique subset of investment and the broader venture space.

Among areas targeted by this investor cohort, AI saw the most activity, accounting for 57.7% of all transactions and 60.7% of total capital deployed in Q3. Top investors also shifted attention toward industrial technology, driving a record $782.4 million in funding across 17 deals in the vertical over the quarter. Expanding defense budgets and a renewed emphasis on domestic production drove activity into the historically niche area of investment, with Castelion and Mariana Minerals closing headline rounds.

View more data in our Q3 Emerging Tech Indicator, which tracks seed and early-stage rounds from the most successful investors, revealing the products and technologies best positioned to alter the venture landscape. This report breaks down which startups these firms are funding and what it tells us about where venture is headed next.

Japan's private capital markets continue to defy global sluggishness, maintaining strong deal flow across PE and VC even as fundraising cools, according to the 2025 Japan Private Capital Breakdown.

At the heart of this resilience is Japan's uniquely supportive financing landscape. Even as the Bank of Japan began gradually easing in 2024, leveraged buyout loans remained among the lowest in the developed world at around 3% to 4%. A persistently weak yen further boosted dollar-based returns, giving nondomestic sponsors an added lift and widening Japan's appeal as a buyout destination.

Corporate reform is powering the pipeline. Governance pressures and the Tokyo Stock Exchange's campaign for capital efficiency have pushed conglomerates to streamline portfolios. Carveout deal value rebounded to $4.1 billion, while take-private transactions have exceeded 25% of PE deal value for six straight years—clear signs that divestments and privatizations remain central engines of activity.

Succession dynamics are adding another engine. Roughly one-third of Japan's SMEs are owned by founders over 70 without clear successors, creating a steady flow of middle-market opportunities where PE firms step in to support leadership transitions and modernization.

Venture dealmaking has been equally resilient. Late-stage deals have nearly doubled their share since 2016, reaching 45%, underscoring the rapid maturation of Japan's startup ecosystem. Software and business-to-consumer are the dominant verticals as corporates continue to accelerate digital transformation and shift to subscription-based models.

Fundraising is the one clear weak spot. Japan-focused GPs have raised just $2.6 billion YTD, down sharply from $12.2 billion in 2024, with only two funds exceeding $500 million. LP caution mirrors global trends, with capital flowing primarily toward thematic strategies.

Even so, Japan's private markets will continue to punch above their weight, as long as structural drivers remain intact. A rebound in fundraising could unlock a fresh wave of capital, allowing Japan's already-robust deal flow to accelerate into 2026.

For more data, download the report, which is available in English and Japanese.