Record Highs, Record Lows: Tracking the Shifting VC Landscape

January 6, 2026 / Monica Zent
Venture Legal 22

For venture capital, 2025 was remarkable for highs and lows.

Among the highs: Two of the three biggest quarters ever for venture funding took place last year.

And, the lows: Overall, firms closed a record-low number of funds.

This dichotomy inspires this edition of Venture Legal, exploring some of the ways in which the VC landscape is evolving, including:

⭐Record raises for the biggest VCs, but a difficult time for mid-level funds.

While big VC firms announce mega-fundraises, many newer and mid-level funds struggled in 2025.

⭐Venture capital goes global. VCs are traveling the world to find new investors, while India and other global markets have had robust activity.

⭐The potential upcoming IPO “mega-cycle.” Experts are predicting a possible “mega-cycle” for IPOs, and projecting what it will mean for VCs and LPs.

⭐Enterprise AI consolidation. As enterprise-focused VCs anticipate consolidation of AI spend, we may see even more M&A activity – a trend which may already be underway in LegalTech.

➡️Read the full feature story: Record Highs, Record Lows: Tracking the Shifting VC

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