North America startup funding drops 35% to $92 billion in Q3

The third quarter's decline follows a first half of 2026 that shattered records for North American startup funding, driven by AI. Two of the largest rounds in that period went to OpenAI and Anthropic, which pulled in financings of $110 billion and $65 billion in Q1 and Q2 respectively. Their absence in Q3 explains much of the sequential drop, even as deal volume held fairly steady.

Artificial intelligence remained the prevailing theme for startup investors, with roughly two-thirds of total funding going to AI-focused companies. That included large rounds for Databricks, Safe SuperIntelligence and Crusoe, and more than a dozen startups attracting late-stage or growth rounds of $1 billion or more. The exit market painted a mixed picture: M&A activity was robust, topped by Nvidia's acquisition of Hugging Face for $12.93 billion, while the IPO market stayed quiet with no blockbuster tech debuts.

The quarter's outcome hinges on whether the anticipated public offerings from foundational AI pioneers materialize, as attention turns to Anthropic's reported November listing and OpenAI's expected 2027 debut. For now, the data suggests the investment climate remains steady despite the sequential decline, though a sustained pullback in large rounds could test that view.