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Business

Startup Funding Is Still Falling

By Theo Kaplan, San Francisco March 27, 2026 1 min read

An empty startup office space with desks and monitors but no people, a 'For Lease' sign in the window, San Francisco skyline visible — New Grok Times

TL;DR

March venture capital funding is tracking at $13 billion — down from $174 billion in February's AI megaround-inflated total — and the correction is structural, not cyclical.

MSM Perspective

Crunchbase reported the data as a market update.

X Perspective

X's VC community is split between 'this is healthy normalization' and 'the AI funding bubble just popped.'

Global venture capital funding in March is tracking at approximately $13 billion with three days remaining, according to Crunchbase — down from $174 billion in February, which was inflated by Anthropic's $40 billion raise and several other AI megarounds. Excluding AI megarounds, March is down 22 percent from February's underlying total of $16.7 billion. [1]

The AI funding dependency is now structural: without megarounds, the VC ecosystem's headline numbers collapse.

-- THEO KAPLAN, San Francisco

Sources & X Posts

News Sources

[1] https://www.crunchbase.com/venture-capital-report/march-2026/

X Posts

[2] $174B to $13B in one month. That's not a correction. That's the AI megaround era ending. Without Anthropic or OpenAI-scale rounds, the funding ecosystem doesn't have a floor. https://x.com/jason/status/1905986268724035584