The concentration of capital has reached a critical tipping point. A single semiconductor deal captured $1.5B, nearly 40% of the total $3.8B disclosed across 48 rounds, creating a stark divide between hardware giants and the rest of the ecosystem.

This imbalance leaves founders in sectors like Fintech, Defense, and Security facing a significant capital squeeze. While AI remains active with 17 rounds, the sheer scale of the semiconductor lift suggests a pivot toward the foundational layer of the stack, leaving application-layer startups to compete for smaller slices of the pie.

The Capital Concentration

The data reveals a top-heavy distribution. Semiconductors took the lead with $1.5B from just one round. AI followed closely with $1.4B across 17 rounds, indicating that while AI is more active, the individual ticket sizes are being dwarfed by hardware infrastructure.

At the bottom of the stack, the pressure is evident. Fintech, Defense, and Security combined for only $26M across four rounds, highlighting a widening gap in investor appetite between hardware and traditional software services.

Biggest rounds

What founders can do

  • Pivot toward infrastructure: With semiconductors and AI labs capturing the largest checks, founders should highlight how their product integrates with the underlying hardware layer.
  • Diversify investor targets: With active players like Scaleup Europe Fund and M Ventures participating in non-AI rounds, target investors with a proven track record in sector-specific growth rather than generalist AI funds.