State of Startups 2025

Every year, we step back and look at what the data is actually telling us about the startup ecosystem. This year's report pulls from millions of data points across the Carta platform and captures where founders, investors, and operators really are heading into 2026.

A few insights that stood out and are already fueling conversation internally:

• A faster-than-expected venture recovery
  After the 2022 bubble popped, history suggested a longer cooldown. Instead, AI has accelerated the rebound. Are we truly in a different cycle this time? The data has a point of view.

• Deep tech’s moment
  36% of all venture funding went to deep tech this year. It’s hard to see that number staying below 40% for long.

• The “muddled middle” of venture funds
  Funds are polarizing. It’s increasingly about being either an agile first-check fund or a mega-fund with massive reserves. Sitting in the middle is getting tougher.

• Startup hiring remains sluggish
  Hiring has been soft for more than two years. The outlook suggests a slow, uneven path toward a potential rebound in 2026.

• Why next year’s IPOs matter more than you think
  A small number of anticipated IPOs could have an outsized impact on market sentiment and downstream activity.

We’d love to hear from this community:

• Are these trends matching what you’re seeing firsthand?

• Where do you think the data is most surprising?

• What are you watching most closely as we head into 2026?