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Amid macroeconomic uncertainty and geopolitical tensions, 2025 presents a paradox for the innovation economy. While overall venture financing has slowed, massive capital flows to AI leaders have driven the highest investment levels alongside the lowest deal counts of the decade. Our H1 2025 Innovation Economy Update examines these market contradictions and emerging signals that point toward potential shifts ahead.

The update explores critical developments, including:

  • The AI investment surge driving record funding levels despite fewer overall deals
  • How startups working on AI secured premium valuations across all stages
  • Venture market dynamics with founder-friendly terms amid near all-time high valuations

Download our complete analysis to understand the contradictions and opportunities shaping today’s innovation economy. Connect with a J.P. Morgan Startup Banking expert to discuss how these dynamics impact your company’s strategic planning.

Contributors

John China

Co-Head of Innovation Economy, J.P. Morgan Commercial Banking

Andrew Kresse

Co-Head of Innovation Economy, J.P. Morgan Commercial Banking

JPMorgan Chase Bank, N.A. Member FDIC. Visit jpmorgan.com/commercial-banking/legal-disclaimer for disclosures and disclaimers related to this content.

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