How AI shaped the private market: A look at the data behind 2025’s transformation
The steady rise and sudden surge of AI companies
If you spent any time around the private market this year, you probably felt it: 2025 wasn’t just another chapter in the artificial intelligence (AI) story, it was the moment the plot went full blockbuster. And now, with the data in hand, there are several trends that have emerged.
The rise of AI in the private market didn’t happen overnight. Instead, it built steadily and then suddenly into a tidal wave. Back in 2022, only 12% of mid- and late-stage companies raising capital fell into the AI bucket.1 By 2025, that share had climbed to 20%. But the real jolt came from funding volume, where growth continued to accelerate. As the share of AI companies raising capital ticked up modestly, their share of dollars raised increased sharply from 9% in 2022 to 67% in 2025.2
Funding flows into AI account for most of growth
So how much money is actually flowing into this corner of the market? In 2022, mid- and late-stage AI companies raised a respectable $8.2 billion.3 But by 2025, that figure had soared to an astonishing $94.6 billion, a level exceeded only once in total funding over the past seven years – in the frenzy of 2021. In fact, virtually all the growth in capital raised since 2023 can be traced back to AI. Remove AI from the equation, and the market’s fundraising landscape looks far more subdued.
AI’s impact on secondary trading activity
With that kind of capital pouring in, it’s no surprise that the ripple effects spread quickly into secondary trading. Investor interest has risen significantly over the past few years. In 2022, AI companies represented just 2% of total trading volume on the secondary market.4 This year they reached 44%. Interestingly, while 2025 was the year of peak AI buzz (so far), the biggest leap actually happened from 2023 to 2024. The step-up from 2024 to 2025 was relatively modest, suggesting the surge in trading activity was less a sudden frenzy and more likely the result of groundwork laid years prior.
Looking ahead: The lasting impact of 2025
Taken together, these trends paint a striking picture: AI is no longer a niche theme or an emerging segment, it’s currently a significant focal point of private market activity. From fundraising to valuations to secondary trading, the sector reshaped the market’s structure and direction in just a few years. And if 2025 taught us anything, it’s that AI’s influence continues to grow both in scale and impact.
The seeds of this growth were planted long before the headlines declared “The Year of AI.”5 But 2025 is undeniably when the story reached a turning point that may continue to shape the private market landscape for years to come. Whether you're ready to create an account and dive into these market dynamics or log in to explore detailed pricing on AI opportunities, the numbers make one thing clear: it’s worth paying attention to how AI is shaping today’s private market.
FAQs about AI's Transformation of the Private Market in 2025
What made 2025 such a pivotal year for AI in private markets?
While AI's rise began earlier, 2025 marked the moment it became a force in private market activity. The convergence of massive funding flows ($94.6 billion), heavy investor interest, and AI companies capturing two-thirds of all private market dollars created a transformation of the entire landscape.
How can AI companies represent only 20% of fundraising companies but capture 67% of all funding?
This dramatic disparity reflects the massive scale and ambition of AI ventures compared to traditional startups. AI companies are raising significantly larger funding rounds, often requiring substantial capital for computing infrastructure, talent acquisition, and research development. While fewer in number, these companies are pursuing opportunities that demand more investment, creating this striking concentration of capital.
What could this mean for non-AI companies seeking private market funding?
With potentially less capital available, non-AI companies may face a more challenging fundraising environment, as the data shows virtually all growth in private market capital since 2023 has flowed to AI ventures. However, this concentration also creates opportunities—investors seeking diversification may find attractive valuations in overlooked sectors, and companies that can credibly integrate AI into their business models may access this capital pool.
How has this AI transformation affected secondary market dynamics?
Secondary markets have become increasingly AI-centric, with trading volume jumping from 2% to 44% of total activity. This shift reflects both the maturation of earlier AI investments reaching tradeable stages and growing institutional appetite for AI exposure. The relatively modest increase from 2024 to 2025 suggests this trend is stabilizing rather than accelerating, potentially indicating a new equilibrium in secondary market composition.
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