OpenAI and Anthropic Are Soaking Up VC Cash as Startup Deals Dry Up

Venture capital funding is reaching record levels in 2026, but a growing share of that money is flowing to a handful of artificial intelligence giants, leaving fewer dollars and deals for early-stage startups.

Global venture capital investment approached $680 billion through the first three quarters of 2026, according to Crunchbase data. However, the surge in funding has been driven largely by massive financing rounds for companies such as OpenAI and Anthropic, rather than a broad recovery across the startup ecosystem.

The concentration of capital was particularly evident in the first half of the year, when record-setting financings for the two AI companies helped drive a wave of billion-dollar-plus funding rounds.

The trend continued in the third quarter, with approximately one-third of global venture funding going to just 27 companies that raised rounds of at least $1 billion, Crunchbase reported.

Fewer Startup Deals Despite More Money

North America, the world’s largest startup funding market, offers a clear example of the growing divide between investment dollars and deal activity.

Reported venture deal counts in the region fell 16% year over year and 14% quarter over quarter in the third quarter, reaching their lowest quarterly level since 2023.

At the same time, funding dollars jumped 50% year over year to $92 billion.

The decline has been concentrated in seed and early-stage companies, while late-stage deal counts actually increased year over year.

The imbalance is also becoming apparent among more mature startups. U.S. Series B funding has reached a multiyear high in dollar terms so far this year, but the number of deals is on track to hit a multiyear low.

AI Giants Set the Pace

The funding disparity highlights how the artificial intelligence boom is reshaping venture capital markets.

OpenAI and Anthropic have attracted enormous investor commitments, helping push overall funding totals higher even as smaller companies struggle to secure financing.

Anthropic, the largest venture-backed private company, is expected to go public this month in a potential $2 trillion IPO, creating a major test of public-market demand for the companies driving the AI investment boom.

A successful debut could encourage venture investors to continue backing massive AI financings. A disappointing reception, however, could put pressure on private-market valuations.

Still, even a strong IPO would not necessarily translate into more funding for smaller startups.

Crunchbase said a broader startup recovery will ultimately depend on whether deal counts begin rising alongside investment dollars, rather than capital remaining concentrated among a small group of heavily funded companies.

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