Venture capital investment in U.S. startups started off slow in January 2025, with only Andreessen Horowitz reaching double-digit deals. The firm led the pack with 13 investments, while other big names like General Catalyst, Sequoia Capital, and Bessemer Venture Partners trailed behind with 8, 6, and 6 deals respectively.
Despite the overall slowdown, there were still some notable rounds in January. Andreessen Horowitz co-led voice AI startup ElevenLabs’ $180 million round at a $3.3 billion valuation and participated in Hippocratic AI’s $141 million Series B, valuing the healthcare AI company at $1.6 billion. The firm also backed shopping platform Whatnot’s $265 million Series E at a nearly $5 billion valuation.
General Catalyst’s January investments included co-leading military planning software Onebrief’s $50 million Series C and participating in recruiting startup Mercor’s $75 million round at a $2 billion valuation. Sequoia Capital made a big bet on crypto, co-leading digital asset wallet Phantom’s $150 million raise with Paradigm at a $3 billion valuation.
The slower pace of deals in January suggests that VCs are becoming more cautious and selective in the current economic environment. With concerns about a potential recession and the fallout from the crypto market downturn, investors seem to be focusing on startups with strong fundamentals and clear paths to profitability.
However, the continued interest in AI and crypto startups indicates that these sectors are still seen as high-potential areas for growth. As the year progresses, it will be important to watch how VC investment trends evolve and which startups are able to secure funding in a more challenging market.
For startups seeking to raise capital in this environment, it will be crucial to have a compelling value proposition, a solid business model, and a team with the expertise to navigate uncertainty. Those that can demonstrate traction and a clear path to revenue generation will be best positioned to attract investor interest.
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Tags: Andreessen Horowitz, venture capital, startups, AI, crypto, investing
Source: https://news.crunchbase.com/venture/most-active-us-investors-january-ai-a16z-general-catalyst/