India's startup ecosystem raised nearly $11 billion in 2025, with investors becoming more selective and focusing on early-stage startups that demonstrate strong product-market fit and revenue visibility. The number of funding rounds decreased by 39%, while total funding fell by 17%, highlighting a shift towards more deliberate capital deployment. AI startups in India raised $643 million, mainly in early-stage deals, contrasting with the U.S.'s $121 billion AI funding surge. The Indian government increased its involvement, launching initiatives to support deep-tech and innovation, which helped stabilize the regulatory environment and improve exit opportunities. This evolving landscape suggests a maturing ecosystem, with India increasingly seen as a complementary market to developed economies, offering unique opportunities and challenges. This matters because it highlights the strategic shifts in India's startup funding landscape, emphasizing the growing importance of early-stage investments and government involvement in fostering a sustainable and innovative ecosystem.
European universities and research labs have become a fertile ground for deep tech innovations, with 76 spinouts reaching significant milestones of $1 billion valuations or $100 million in revenue by 2025. Venture capital is increasingly drawn to these academic spinouts, with new funds like PSV Hafnium and U2V emerging to support talent from tech universities across Europe. Despite a decline in overall VC funding in Europe, university spinouts in deep tech and life sciences are set to raise nearly $9.1 billion, highlighting their growing importance. However, a notable challenge remains in securing growth capital, as a significant portion of late-stage funding still comes from outside Europe, particularly the U.S. This matters because fostering local investment is crucial for Europe to fully capitalize on its research and innovation capabilities.