VC & StartupsMarket Pulse
Global Startup Funding Rebounds — $72B Raised in Q1 2026
Venture capital activity bounced back sharply in Q1 2026, with AI, climate tech, and defence tech drawing the majority of capital globally.
CrunchbaseMay 12, 2026
Global venture capital funding reached $72 billion in Q1 2026, a 34% increase year-over-year and the strongest first quarter since 2022, according to Crunchbase data. The recovery was led by large rounds in AI infrastructure, climate technology, and defence tech — three sectors that now account for over 55% of all VC dollars deployed.
India was a notable bright spot in the Asia-Pacific region, with Indian startups raising $4.2 billion in the quarter — a record Q1 figure — driven by rounds in fintech, B2B SaaS, and electric mobility.
Sector breakdown
- —AI / ML infrastructure: $28B — largest single sector by far
- —Climate and clean energy: $11B — driven by grid storage and green hydrogen
- —Defence tech: $8B — global geopolitical environment fuelling investment
- —Fintech: $6B — payments and embedded finance leading
- —Health tech: $5B — AI diagnostics and longevity focus
The AI funding cycle is not slowing. If anything, Q2 is shaping up to be even larger as sovereign AI and enterprise agentic deployments attract fresh capital.