State of Enterprise Software
2025 Report

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Key Takeaways

Amid uncertain macroeconomic conditions and a challenging exit environment, artificial intelligence/machine learning (AI/ML) stands out as a primary force driving the venture ecosystem. The technology will continue to attract capital and investor interest, but mass adoption and AI’s long-term success will be dependent on trust, credibility, and its ability to increase efficiency across all layers of the software stack.

43% YoY growth in US VC investment in enterprise software companies

Capital requirements and optimism surrounding AI drove much of this growth in 2024, with investors anticipating a new era of opportunity.

1 in 6 US VC enterprise software deals involved AI/ML startups

Up from 1 in 12 deals pre-pandemic, highlighting the rapid rise of AI technology.

307 US VC-backed unicorns are enterprise software

This number accounts for 40% of all US VC-backed unicorns last year, up from 31% five years ago.