Insights

In the quarter immediately following an all-time high, the global venture market recorded its second-highest result ever. According to this KPMG report based on PitchBook data, global VC investment reached USD 227.4 billion across 8,440 deals in the second quarter of 2026. Although below the previous quarter's record USD 332.8 billion, which included OpenAI's USD 122 billion raise, market momentum continued as U.S. LLM company Anthropic raised USD 65 billion, the second-largest round on record. The Americas accounted for the largest share with USD 150 billion across 3,999 deals, while Asia Pacific (USD 50.8 billion across 2,676 deals) and Europe (USD 25.6 billion across 1,636 deals) also remained resilient.

Concentration in AI and polarization by investment stage. Median deal sizes and valuations rose across all stages, but capital was concentrated in late-stage financings, including AI megadeals. Three U.S. companies and four Chinese companies were among the quarter's ten largest fundraising rounds, and every region recorded AI deals above USD 1 billion, including Anthropic at USD 65 billion, Prometheus at USD 12 billion, and DeepSeek at USD 7.4 billion. Defense tech also performed strongly amid geopolitical tensions, including a USD 5 billion round for Anduril Industries, while biotech maintained momentum with deals such as the USD 2.1 billion raise by AI drug-design company Isomorphic Labs.

SpaceX opens the exit window, raising expectations for a second-half IPO rush. SpaceX raised USD 75 billion in the largest IPO on record, achieving a valuation above USD 2 trillion and driving a sharp increase in global exit value. Anthropic and OpenAI have also filed confidentially for listings with the U.S. Securities and Exchange Commission, raising the prospect of IPOs within the year. The report also notes that some startups may delay listings to avoid being overshadowed by megascale IPOs. For the second half, AI is expected to remain the market's primary engine, defense tech to stay strong in the United States and Europe, and interest in space tech to expand following the SpaceX transaction.

Implications for M&A. First, the valuation gap created by weak early-stage investment and late-stage concentration may expand secondary transactions and acquisition opportunities involving early- and growth-stage startups. Second, the reopening of exits through major IPOs could stimulate fundraising and reinvestment cycles among Korean VC and PE firms, potentially catalyzing a recovery in deal activity in the second half. Third, concentration of capital in AI, defense tech, and space tech is likely to increase demand for cross-border fundraising and strategic equity partnerships involving Korean technology companies in those sectors.