"AI Boom"... Global VC Investment Hits All-Time High in Q1

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In the first quarter of this year, global venture capital (VC) investment volume more than doubled compared to the previous quarter, surpassing $330 billion (approximately KRW 48.756 trillion) and setting an all-time record. This is attributed to a series of large-scale investments in the artificial intelligence (AI) sector.

According to the “Global Venture Capital Investment Trends for Q1 2026” report published by global accounting and consulting firm KPMG on April 27, total global VC investment in the first quarter of this year was tallied at $330.9 billion, nearly three times higher than the $128.6 billion of the previous quarter.

Notably, in the first quarter of this year, there were 10 mega-deals each exceeding $2 billion. A total of $206 billion, accounting for over 60% of all VC investment, was concentrated in a small number of companies. In particular, U.S.-based AI firms dominated the top ranks, including OpenAI ($122 billion), Anthropic ($30.6 billion), xAI ($20 billion), Waymo ($16 billion), Databricks ($7 billion), Polymarket ($2.6 billion), and Shield AI ($2.3 billion).

By region, the Americas were overwhelming. VC investment in the Americas during the first quarter reached $270.1 billion, accounting for more than 80% of all investment. Within the United States alone, investment hit a record high of $267.2 billion. Europe recorded $25.7 billion, its highest in 14 quarters, while Asia also reached a 12-quarter high at $31.8 billion.

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Thanks to these large-scale investments, fundraising in the United States is also showing signs of recovery. In the first quarter of this year, a total of $47.8 billion was raised, achieving more than half of the total annual fundraising for the past three years. A total of 66 new unicorns (unlisted startups valued at over KRW 1 trillion) were created, primarily centered on AI companies.

The European VC market continued its stable trend, recording $25.7 billion in the first quarter. Notably, the number of companies raising investments of $1 billion or more in the AI and deep tech sectors reached a record high of six. Large-scale investments took place across a wide range of industries, including infrastructure, autonomous driving, energy management, enterprise software, cleantech (eco-friendly clean technology), legaltech (technology in legal services), and even defense technology.

In Asia, major investments led market growth, including Chinese company Rokid, a leader in augmented reality (AR) solutions such as smart glasses, and Singapore-based data center company DayOne. In particular, China saw a remarkable expansion of investment focused on AI, biotech, semiconductors, and space technology.

By industry, the software sector achieved a record-high quarterly investment of $225.2 billion, approaching last year’s full-year total of $241.5 billion. Software investments, particularly those centered on AI, are seen as driving market growth.

The exit market also showed positive momentum. Global exit volume in the first quarter reached $413.5 billion, the highest since Q4 2021. Large-scale mergers and acquisitions (M&A) were a major driving force. In contrast, the initial public offering (IPO) market remained weak, with IPO volume at just $65.2 billion and only 83 new listings.

Scale and number of global venture investment exits from 2020 to the first quarter of this year. For initial public offerings (IPO), the calculation is based on pre-IPO valuation. Provided by Samjeong KPMG

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The fervor for investment in the AI sector also continues. The scope of investment has rapidly expanded beyond large language model (LLM) companies to include infrastructure areas such as semiconductors and data centers, as well as industry-specific AI application solutions, agentic AI, and physical AI.

The report analyzed that concerns over rising oil prices and a resurgence of inflation in the second quarter could dampen investor sentiment. Accordingly, a short-term recovery in the IPO market is also expected to be limited. However, AI is anticipated to remain a core focus in the global VC investment market going forward, with investment likely to continue not only in model development but also in industry-specific applications.

Jung Doyoung, Head of the Startup Support Center at Samjong KPMG, stated, “The first quarter of this year marked a strong starting point for the global VC investment market as a series of mega-deals were executed. While geopolitical tensions and macroeconomic uncertainties may pose challenges for the VC market, sectors such as AI, defense technology, space technology, and cybersecurity will continue to attract sustained attention from investors.”

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