08. May 2025
Us Startups Face Slow Funding Pace As Spring Arrives
The Spring Season Brings Slow Funding Deals for US Startups
According to data from various sources, including Crunchbase and PitchBook, only two firms, Andreessen Horowitz (a16z) and Khosla Ventures, managed to break double digits in terms of deal count in April. This month’s relative slow pace of venture capital firms in the United States leaves observers wondering what’s behind this trend.
To gain insight into the state of US startup investing, a closer look at the most-active firms was taken. The analysis reveals a fascinating mix of deal sizes, valuations, and industry focus that provides a glimpse into the current market landscape.
At the top of the list is Andreessen Horowitz (a16z), with an impressive 13 deals made last month. The firm’s prolific activity is not new, but the sheer number of deals in April is noteworthy. a16z’s involvement in funding rounds often goes hand-in-hand with significant investments.
One notable example is its participation in Base Power’s $200 million Series B round, co-led with Addition, Lightspeed Venture Partners, and Valor Equity Partners. This deal not only demonstrated a16z’s interest in the startup but also highlighted the firm’s willingness to go big on investment. Base Power, an Austin-based company, specializes in installing residential backup power systems designed to charge batteries when electric prices are low.
Another significant deal made by a16z was its lead role in Flow’s $100 million-plus round at a valuation of $2.5 billion. Flow is the residential real estate startup founded by WeWork co-founder Adam Neumann, which aims to bring luxury living experiences to everyday people. This investment marks a new chapter for Flow as it seeks to expand its operations and solidify its position in the competitive residential real estate market.
Khosla Ventures trailed closely behind with 10 deals made last month. The firm’s relative activity is often accompanied by some notable investments that catch investors’ attention. One such deal was its participation in Science’s $104 million round, which marked a significant milestone for the Alameda-based biotech company.
Science, founded by a co-founder of Neuralink, is working on both brain implant systems and retina implants to treat eye diseases. Khosla Ventures’ involvement in this round underscores the firm’s interest in cutting-edge technologies with potential applications beyond traditional industries.
Another notable deal made by Khosla Ventures was its participation in Cyberhaven’s $100 million Series D round, which valued the startup at a whopping $1 billion. Cyberhaven is a data detection and response startup that has gained traction in recent years due to growing concerns about cybersecurity threats.
General Catalyst, another prominent VC firm, took part in 9 deals last month, its slowest pace of investment since January. The firm’s involvement in Mainspring Energy’s massive $258 million Series F round was a notable exception, demonstrating the firm’s willingness to invest in emerging technologies that have potential applications beyond traditional industries.
The recent surge in interest from investors in renewable energy, driven by increasing concerns about climate change, is reflected in General Catalyst’s investments. By backing companies like Mainspring Energy, which produces generators that have become increasingly attractive to investors as AI continues to suck down energy, the firm is positioning itself for long-term growth and returns.
The analysis of April’s funding deals provides a glimpse into the evolving ecosystem of US startups. The demand for sustainable solutions continues to grow, with companies like Mainspring Energy poised to capitalize on this trend. The biotech sector also remains a hotbed of investment activity, with firms like Khosla Ventures actively backing companies working on cutting-edge technologies like brain implants and retina implants.
The data suggests that investors are still focused on high-growth startups with significant market potential. Whether it’s renewable energy or biotech, these sectors will likely continue to attract investment as entrepreneurs strive to address pressing global challenges.
Andreessen Horowitz’s lead role in funding rounds is often accompanied by its ability to go big on investment. The firm’s strategy is clear: identify promising startups with significant market potential and provide the necessary resources to help them grow.
Khosla Ventures has taken a more diversified approach to investing, backing companies across various industries and geographies. This strategic approach allows the firm to stay informed about emerging trends and invest in opportunities that may not be as obvious but still have significant potential.
General Catalyst’s focus on long-term growth and returns is reflected in its investments, which often prioritize emerging technologies with broad applications beyond traditional industries. By backing companies like Mainspring Energy, General Catalyst positions itself for future success.
The analysis of April’s funding deals provides a comprehensive view of the US startup investing landscape. The following firms were among the most active investors last month:
- Andreessen Horowitz (a16z) - 13 deals
- Base Power ($200 million Series B)
- Flow ($100 million-plus round at $2.5 billion valuation)
- Khosla Ventures - 10 deals
- Science ($104 million round)
- Cyberhaven ($100 million Series D round at $1 billion valuation)
- General Catalyst - 9 deals
- Mainspring Energy ($258 million Series F)
- BoxGroup - 8 deals
- Index Ventures - 8 deals
- Ocampo Capital Partners - 7 deals (most led or co-led deals last month)
- Greenoaks Capital Partners - 5 rounds led or co-led with highest dollar amounts
- Y Combinator - 22 startups invested in April