$510 billion in global venture funding marked a record for H1 2026, driven by the AI boom and a surge in exits. Open AI and Anthropic dominated, capturing 43% of all funding—$217 billion combined—highlighting how a handful of AI giants are reshaping markets. This concentration contrasts with broader sector growth: $108.6 billion went to 16 billion-dollar rounds in Q2 alone, spanning AI infrastructure, defense, and healthcare. The U.S. remained dominant, with two-thirds of capital flowing there, though AI’s share of funding rose to 70% from 50% YoY.

The AI boom’s impact extended beyond funding. Q2 saw record exits, with 32 IPOs above $1B and $113 billion in acquisitions. Space X’s $1.77 trillion IPO and $60 billion Anysphere deal underscored liquidity’s return. Late-stage funding hit $134 billion in Q2, while early-stage surged 100% YoY to $589 billion. Seed rounds remained strong at $12 billion, though a gap persists between mega-rounds and smaller investments. The market’s revival isn’t just about AI—defense, robotics, and healthcare also attracted massive capital, signaling diversification.

The resurgence of IPOs and M&A completes a new venture cycle. H1’s record funding is framed by extreme concentration: Anthropic alone raised $65 billion in Q2, becoming the most valuable private firm post-Space X’s exit. Yet, the ecosystem shows resilience. Funding grew across all stages, and exits matched 2021 levels. This balance—massive AI-driven deals paired with broader sector activity—suggests 2026 could redefine venture capital’s relationship between innovation and liquidity. Investors betting on AI’s long tail or broader tech trends may find new opportunities as the market stabilizes.