Startup funding rebounds in Q2, led by energy software

Global venture funding rose 18 percent quarter on quarter in the three months to June, the strongest reading in two years, according to data released on Wednesday.

Energy software led the rebound: startups building grid-management, demand-response and battery-optimization tools raised $9.4 billion, more than double the same period last year. AI infrastructure remained the largest single category by dollars, though its share of total funding fell for a second straight quarter.

Late-stage valuations recovered faster than early-stage rounds, which investors attributed to a reopening IPO window giving growth funds a visible exit path for the first time since 2024.