Venture capital activity kicked off the week with a blend of optimism and strategic shifts. The Financial Times reported yesterday that U.S. VC is riding its biggest wave in three years, driven by an AI frenzy. Massive funding rounds in 2025 reflect investor enthusiasm for generative AI and infrastructure plays, with firms betting big on tech’s next evolution. Notable recent raises—like Fluent Labs’ $8 million led by Polychain Capital and Mavryk Dynamics’ $5 million from Ghaf Capital—underscore this trend, per Cointelegraph’s March 3 update.

Globally, China’s state planner announced plans for a 1 trillion yuan ($138 billion) national VC guidance fund, targeting “hard tech” like semiconductors and renewables. Reuters noted on March 6 that this public-private partnership aims to bolster tech startups, signaling Beijing’s push for innovation dominance. Meanwhile, Israel’s VC scene struggles, with Xinhua reporting a decade-low $1.15 billion raised in 2024, though investment volumes ticked up, hinting at a potential 2025 rebound.

Posts on X today highlight a growing narrative: VC fundraising lags private equity, with sentiment suggesting a consolidation among top-tier funds. Sammy Abdullah’s Medium piece, shared this morning, argues that while private equity adapts, VC faces a tougher road—smaller funds may shutter as LPs favor proven winners. India, however, bucks the trend, with EY-IVCA noting a 37% surge to $6.3 billion in January investments, fueled by tech and green energy.

The VC playbook for 2025 is taking shape—AI and deep tech dominate, but regional disparities and fundraising challenges signal a Darwinian shakeout ahead. Watch this space as the quarter unfolds.