AI Startups Snagged $274M as Seed Rounds Soared to $873M in August

August 2025 Seed Funding: What Founders Need to Know

It’s been a sweltering summer for seed funding, and not just the weather. Behind the headlines, August 2025 closed out with a surge of capital into early-stage startups, as investors doubled down on deep tech and classic verticals alike. If you’re building right now, knowing where the money is flowing, who’s writing checks, and how rounds are structured is more crucial than ever. Let's break down the numbers, trends, and takeaways so you can navigate (and catch) the current funding wave.

Where the Money Poured In

North America, and the U.S. specifically, once again topped the charts, accounting for over $300 million in seed cash. California and New York, true to form, remain the heavyweight champions. In cities, San Francisco, New York, and Los Angeles lead, with LA’s Bonus Homes propelling PropTech into the spotlight through a standout $65.5 million round.

Emerging markets didn’t stay quiet: China and India were both top five by total capital, and Singapore continued to punch above its weight. For U.S. founders, Delaware’s third-place finish among states is a reminder of the legal entity games startups play, while Texas and Austin underline the growing power of “second-tier” hubs.

AI Takes the Throne, By a Mile

If you’re in Artificial Intelligence, you’re in the center of the action: AI rounds collected over $274 million in seed capital, dwarfing runners-up like FinTech ($60M) and Biotech ($44M). Across 83 AI deals, the average check size was nearly $5 million, with $30M+ outliers making headlines. Software, Health Care, and SaaS saw robust activity too, but it’s clear that Generative AI and machine learning are top-of-mind for VCs.

Notably, the companies drawing crowds included first-timers like Munify and Cirrus Therapeutics, as well as returning favorites such as FriendliAI (yes, that’s more AI).

Deal Dynamics: Sizing Up the Rounds

The median seed round now clears $2.5 million, a figure pulled higher by outsized deals, especially in AI and IT. And while nearly half the rounds were true “first money in,” just over half went to companies already on their second or third bite; these "follow-on" rounds pulled in most of the dollars ($616M vs. $258M for first-timers).

Peak days for announcements clustered late in the month, but August 12th logged a record 24 deals in a single day. If timing your news matters, watch these weekly cycles.

Investors: Who's Dominating?

This month’s frequent flyers included FasterCapital, Antler, Y Combinator, and Coinbase Ventures. Most had an unmistakable AI or FinTech focus. Importantly, many rounds saw multiple lead investors, a trend linked with materially bigger checks (average $2.5M versus $1.8M for solo-led rounds). That’s a cue: if you want a larger seed, building a syndicate might be the way to go.

TL;DR, August’s Seed Funding Summed Up

• Total August Seed Capital: $873.6 million across 390 rounds
• AI rules: $274M+ invested, ~5x the next sector (FinTech)
• Hot geos: CA, NY, LA (with Bonus Homes’ $65.5M round), TX, Austin; global heat from China, India, Singapore
• Benchmark Seed Round: Median $2.5M; AI/IT can command much more
• First-time vs. follow-on: Split nearly 50/50, but follow-ons took home 70%+ of dollars
• Active investors: FasterCapital, Antler, YC, Coinbase Ventures, Bessemer, AI, FinTech, Software in focus
• Bigger checks via syndicates: Multi-lead rounds = higher capital pool
• Actionable insight: If you’re pitching AI/FinTech/Software, especially in top geos, the capital’s there. Syndicates and good timing can meaningfully impact your outcome.

Founders: it’s still a seller’s market at seed, especially if you’re leveraging AI or clustering in a hot region. Sharpen those decks, and know the competition’s fierce but the wallets are open.