US Startup Funding Plunges to $13 Billion in March 2026 After Record AI Megarounds

US startups have raised approximately $13 billion in seed-through growth-stage funding so far in March 2026, marking a sharp slowdown from the explosive start to the year.

This downturn follows robust funding in January and February, driven by unprecedented artificial intelligence investments.

February's Historic Surge

February saw global venture funding hit a record $189 billion, largely propelled by massive US deals.

OpenAI secured the largest venture round ever at $110 billion, valuing the company at $840 billion.

Anthropic followed with a $30 billion financing round, the second-largest in history, at a $380 billion valuation.

Waymo also raised $16 billion in late-stage funding, contributing to the month's frenzy.

Drivers of the March Slowdown

The pullback is primarily in late-stage rounds, with fewer giant AI megarounds materializing this month.

Early- and seed-stage dealmaking remains steady, matching levels from the prior two months.

Geopolitical tensions, including the Iran War that began on February 28, have sparked investor caution amid falling stock indexes.

Global Context and Future Outlook

While US funding decelerates, Europe is experiencing a yearly high, boosted by AI infrastructure deals like Nscale's unicorn round.

This slowdown underscores the volatility in venture capital, with startups now facing tighter capital amid economic uncertainties.

Experts anticipate February's records will stand unmatched for years, signaling a potential new normal of more measured AI investments ahead.