AI dominates VC funding: 71% of investment goes to AI startups

SaaStr’s weekly highlights offer a revealing snapshot of current startup market dynamics, with AI capturing a staggering 71% of all venture capital dollars according to NVCA data. The roundup showcases both the shifting investment landscape and practical leadership challenges facing SaaS founders, with content focused on secondary markets, sales leadership evaluation, and the evolving role of artificial intelligence in business software.

The big picture: The secondary markets for hot startups are experiencing a resurgence, though enterprise software companies aren’t seeing the same level of activity, according to one of SaaStr’s top weekly posts.

AI dominates funding landscape: According to NVCA data highlighted in a top post, artificial intelligence now commands 71% of all venture capital dollars, while overall VC deal pace in 2025 mirrors 2024 levels.

• This concentration of funding in AI represents a significant shift in the venture landscape, potentially creating challenges for startups in other sectors.

Leadership evaluation remains critical: SaaStr offers a practical “5 Point Test” for founders questioning whether their VP of Sales is the right fit, indicating ongoing leadership challenges in scaling SaaS companies.

• Another top post addresses a common mathematical misunderstanding among founders regarding dilution, suggesting many entrepreneurs may be miscalculating their ownership stakes.

AI’s evolving role in sales: One popular post argues that while AI cannot yet fully replace human salespeople, it may already surpass the capabilities of many sales team members in certain aspects.

• This perspective highlights the tension between AI’s growing capabilities and the continued importance of human judgment in complex sales processes.

Top multimedia content: The most popular podcast content focuses on practical insights and metrics, including the “Top 10 Customer Success Metrics Investors Care About in 2025” featuring Gainsight CEO Nick Mehta.

• Another top video explores concerns about purchasing new SaaS applications, suggesting potential market hesitation despite continued innovation.

B2B SaaS evolution: Multiple top podcasts address the future of AI in B2B SaaS and provide data on what it takes for companies to achieve scale and eventually IPO, indicating continued interest in growth pathways despite market challenges.