SaasRise Research
The Definitive Guide to Software Venture Capital
$512B invested globally · AI dominance · Top VC rankings · Q1 2026 record quarter
Welcome to the SaaS VC Report 2026, SaasRise's annual deep dive into the state of venture capital for software and SaaS companies worldwide. This report covers full-year 2025 data with Q1 2026 updates, analyzing investment trends, valuations, top VC firms, geographic distribution, and what it all means for founders and investors.
2025 was a year of extremes. Global venture capital hit $512 billion in deal value — the second-highest annual total ever — driven almost entirely by artificial intelligence. AI companies captured more than half of all VC deal value globally, reshaping the venture landscape in ways not seen since the dot-com era. Meanwhile, Q1 2026 shattered all records with $297 billion in a single quarter, fueled by unprecedented mega-rounds from OpenAI, Anthropic, xAI, and Waymo.
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Here are the key statistics for the software venture capital market in 2025:
The top 20 SaaS VC firms ranked by software investment count, software exits, and assets under management:
| Rank | Firm | Software Investments | Software Exits | AUM (Millions) |
|---|---|---|---|---|
| 1 | Sequoia Capital | 2,010 | 535 | $90,000 |
| 2 | Andreessen Horowitz | 1,780 | 355 | $45,000 |
| 3 | Accel | 2,050 | 540 | — |
| 4 | New Enterprise Associates | 1,420 | 520 | $27,500 |
| 5 | General Catalyst | 1,185 | 285 | $35,000 |
| 6 | Lightspeed Venture Partners | 1,210 | 340 | $26,500 |
| 7 | Tiger Global Management | 1,090 | 215 | $58,000 |
| 8 | Bessemer Venture Partners | 1,240 | 385 | $19,500 |
| 9 | Kleiner Perkins | 1,115 | 400 | $21,000 |
| 10 | Index Ventures | 1,030 | 290 | $4,500 |
Combining software investment count (33%), AUM (33%), and software exits (33%), the top 25 Power Rankings are:
| # | Firm | City | Investments | Exits | AUM ($M) |
|---|---|---|---|---|---|
| 1 | Sequoia Capital | Menlo Park | 2,010 | 535 | 90,000 |
| 2 | Andreessen Horowitz | Menlo Park | 1,780 | 355 | 45,000 |
| 3 | New Enterprise Associates | Menlo Park | 1,420 | 520 | 27,500 |
| 4 | Tiger Global Management | New York | 1,090 | 215 | 58,000 |
| 5 | General Catalyst | San Francisco | 1,185 | 285 | 35,000 |
| 6 | Lightspeed Venture Partners | Menlo Park | 1,210 | 340 | 26,500 |
| 7 | Kleiner Perkins | Menlo Park | 1,115 | 400 | 21,000 |
| 8 | Bessemer Venture Partners | Redwood City | 1,240 | 385 | 19,500 |
| 9 | HongShan Capital Group | Beijing | 920 | 140 | 57,000 |
| 10 | IDG Capital | Beijing | 850 | 230 | 24,500 |
| 11 | Norwest Venture Partners | Menlo Park | 780 | 248 | 16,500 |
| 12 | Khosla Ventures | Menlo Park | 740 | 210 | 16,000 |
| 13 | Founders Fund | San Francisco | 695 | 200 | 13,000 |
| 14 | TCV | Menlo Park | 390 | 185 | 22,500 |
| 15 | Thrive Capital | New York | 425 | 95 | 18,000 |
| 16 | Bain Capital Ventures | San Francisco | 660 | 185 | 11,500 |
| 17 | Index Ventures | San Francisco | 1,030 | 290 | 4,500 |
| 18 | Redpoint Ventures | Woodside | 620 | 215 | 8,000 |
| 19 | First Round Capital | San Francisco | 810 | 270 | 3,500 |
| 20 | Entrepreneur First | London | 650 | 170 | 4,200 |
| 21 | IVP | Menlo Park | 405 | 185 | 9,200 |
| 22 | Canaan Partners | San Francisco | 490 | 175 | 7,200 |
| 23 | Sapphire Ventures | Austin | 420 | 148 | 11,000 |
| 24 | Peak XV Partners | Bengaluru | 700 | 95 | 9,500 |
| 25 | Shenzhen Capital Group | Shenzhen | 340 | 65 | 68,000 |
These 25 firms control approximately $645 billion in AUM with over $130B in dry powder. 18 of the top 25 are based in the San Francisco Bay Area.
The defining story of 2025 wasn't just how much money was invested — it was where it went. Artificial intelligence has fundamentally reshaped the venture capital landscape, absorbing more than half of all global deal value for the first time in history.
52.7% of all global VC deal value in 2025 went to AI/ML companies — up from 30% in 2023 and just 10% in 2015. In the US alone, AI captured 65.6% of all VC deal value ($222B of $339B).
AI/ML Share of Global Software VC Deal Value
Since the launch of ChatGPT in late 2022, AI investment has grown from $73 billion in 2022 to $222 billion in 2025 in the US alone — a 204% increase in just three years.
🤖 Largest AI Funding Rounds of 2025:
1. OpenAI — $40B (Valuation: $300B)
2. Meta/Scale AI — $14.3B (49% stake)
3. Anthropic — $13B (Valuation: $183B)
4. xAI — $10B (Elon Musk's Grok AI)
5. Databricks — $4B+ (Valuation: $134B)
6. Cursor — $2.3B (Valuation: $29.3B)
7. Anduril — $2.5B (Defense AI)
After declining from pandemic-era peaks, software VC deal count recovered in 2025, rising approximately 12% to an estimated 9,200 deals from 8,188 in 2024. This marks the first year-over-year increase since 2021.
SaaS VC Deals By Year
The average deal size surged to an estimated $21.7 million, up 42% from $15.3 million in 2024 — continuing the trend of fewer deals but much larger check sizes.
Average Software VC Deal Size By Year
Total software VC invested globally reached an estimated $200 billion in 2025, up 60% from $125 billion in 2024 and the second-highest annual total ever, behind only the $297 billion peak in 2021.
SaaS VC Dollars Invested By Year
Non-AI software VC investment remained relatively flat at roughly $95 billion, meaning the headline growth was almost entirely AI-driven. For SaaS founders, the implication is stark: integrating AI into your product strategy has become table stakes for attracting venture investment.
| Year | Seed | Series A | Series B | Series C | Series D+ | Total |
|---|---|---|---|---|---|---|
| 2025 | $17.5B | $35.0B | $24.5B | $38.0B | $85.0B | $200B |
| 2024 | $15.7B | $26.4B | $17.6B | $30.0B | $35.4B | $125B |
| 2023 | $17.9B | $24.8B | $9.8B | $17.3B | $27.0B | $97B |
| 2022 | $28.5B | $49.7B | $21.8B | $38.2B | $58.5B | $197B |
| 2021 | $22.0B | $54.2B | $32.7B | $64.7B | $123.2B | $297B |
| 2020 | $11.7B | $30.1B | $11.6B | $24.5B | $53.0B | $131B |
The most striking change in 2025 was the explosion in Series D/E/F+ investment, surging to $85 billion — up 140% from $35.4 billion in 2024, driven almost entirely by AI mega-rounds.
Here are the median pre-money valuations per round over the last twelve years for Series A, B, and C software startups.
Series A Median Pre-Money Valuations By Year
Series A median pre-money valuations reached a new all-time high of $47.0 million in 2025, up 18% from the previous record of $39.9 million in 2024. AI-native startups are commanding $60-80M+ pre-money valuations at Series A.
Series B Median Pre-Money Valuations By Year
Series B median pre-money valuations rose to an estimated $185.0 million in 2025, up 10% from $168.2 million in 2024.
Series C Median Pre-Money Valuations By Year
Series C median pre-money valuations recovered to an estimated $255.0 million in 2025, up 13% from $225.0 million in 2024 but still below the $320 million peak in 2021.
| Year | Series A Amount | Series A Val. | Series B Amount | Series B Val. | Series C Amount | Series C Val. |
|---|---|---|---|---|---|---|
| 2025 | $13.5M | $47.0M | $32.0M | $185.0M | $42.0M | $255.0M |
| 2024 | $12.0M | $39.9M | $30.0M | $168.2M | $35.0M | $225.0M |
| 2023 | $10.4M | $30.1M | $28.5M | $140.4M | $30.0M | $211.0M |
| 2022 | $11.4M | $35.0M | $34.0M | $180.6M | $50.0M | $270.0M |
| 2021 | $10.0M | $30.0M | $30.9M | $155.0M | $50.0M | $320.0M |
| 2020 | $7.0M | $20.0M | $20.0M | $80.0M | $30.8M | $175.0M |
| 2019 | $6.6M | $17.9M | $20.0M | $80.0M | $30.0M | $150.0M |
| 2018 | $6.3M | $17.0M | $16.0M | $63.0M | $25.8M | $117.0M |
In 2025, the median revenue multiple for venture-backed SaaS companies was approximately 10.8x ARR, up from 10.1x in 2024. AI-powered SaaS companies typically commanded 14-20x+ revenue multiples, while traditional SaaS companies without an AI narrative saw multiples compress to 6-8x.
SaaS Revenue Multiples By Year
| Annual Revenue Growth Rate | Median Revenue Multiple (2025) | Change from 2024 |
|---|---|---|
| <20% (Low Growth) | 4.5x | -0.5x |
| 20–40% | 7.2x | -0.3x |
| 40–60% | 9.8x | +0.2x |
| 60–80% | 12.5x | +0.5x |
| 80–100% | 15.0x | +1.0x |
| >100% (Hyper Growth) | 20.0x+ | +2.0x+ |
While private venture-backed SaaS valuations held up reasonably well in 2025 (boosted by AI), the public SaaS market told a very different story. Public SaaS multiples declined sharply throughout 2025, driven by fears of AI disruption and a rotation toward profitability metrics.
Public SaaS Revenue Multiples – Quarterly Trend (SEG SaaS Index & BVP Cloud Index)
⚠️ The SaaSpocalypse and AI Disruption: Investors are increasingly questioning whether traditional SaaS business models — based on per-seat licensing — will survive the rise of AI agents. This has led to a broad repricing of the sector, with median revenue growth falling to 12.2% by Q4 2025. Companies with clear AI integration stories have been rewarded; those without face existential questions from investors.
| Company Profile | Expected Revenue Multiple (2026) |
|---|---|
| Public SaaS – Median (157 companies) | 4.0x median / 6.6x average |
| Private VC-Backed SaaS (Series A–C) | 5.3x median / 8.0–10.0x top quartile |
| High-Growth SaaS (>40% growth, >120% NRR) | 10.0x – 15.0x |
| AI-Native SaaS (>100% growth) | 15.0x – 25.0x+ |
| Traditional SaaS (<20% growth) | 2.0x – 5.0x |
| SaaS with NRR < 90% | 1.0x – 2.5x |
| City | Total AUM (Millions) | % of Total |
|---|---|---|
| San Francisco | 565,200 | 49.2% |
| New York City | 118,450 | 10.3% |
| Beijing | 109,250 | 9.5% |
| Shenzhen | 78,200 | 6.8% |
| London | 31,050 | 2.7% |
| Seoul | 27,600 | 2.4% |
| Boston | 26,450 | 2.3% |
| Singapore | 18,400 | 1.6% |
| Tel Aviv | 14,950 | 1.3% |
| All Others | 259,450 | 22.6% |
Top 400 SaaS VC Firms – AUM By City
Top 400 SaaS VC Firms – AUM By Country
Top 400 SaaS VC Firms – AUM By Continent
$297 billion in global VC funding in Q1 2026 alone — 2.5x the $118B raised in Q4 2025 — more than every full year before 2019.
Q1 2026 VC Mega-Rounds
The unprecedented spike was driven by four behemoth deals:
| Company | Amount | Post-Money Valuation | Key Investors |
|---|---|---|---|
| OpenAI | $122B | $852B | SoftBank, a16z, Amazon, Nvidia, Microsoft |
| Anthropic | $30B | $380B | GIC, Coatue, Founders Fund, ICONIQ |
| xAI | $20B | ~$230B | Valor Equity, Fidelity, QIA, Nvidia |
| Waymo | $16B | $126B | Dragoneer, Sequoia, Alphabet |
These four rounds alone raised $188 billion, accounting for 63% of total Q1 2026 funding. OpenAI's $122 billion round — the largest private funding round in history — valued the company at $852 billion.
Our Prediction: We expect total software VC investment to reach $250–300 billion in 2026, potentially matching the 2021 record. AI mega-rounds will continue to dominate headline numbers, but we also expect a recovery in traditional SaaS investment as the exit window opens and SaaS companies increasingly integrate AI.
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Apply to Join SaasRise →This report draws on data from the following sources, all accessed and verified in March–April 2026:
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