On the surface, 2024 was a decent year for venture capital (VC)—both deal value and exit value increased more than 20% year-over-year in the U.S.
But this growth was concentrated in fewer, larger, and mostly AI deals. In fact, AI and machine learning deals accounted for 46% of total VC deal value last year. Outside of these standout AI deals, the state of venture capital in 2024 was more sobering.
Affinity data on the deal flow, email volume, and network activity of almost 3,000 VC firms across 65+ countries illuminates these trends, while also indicating what’s to come for the remainder of this year. In our 2025 venture capital benchmark report, we analyze the key dealmaking activities of our VC firm customers (“All Firms” versus a subset of those ranked as top investors by Dealroom’s VC Investor Ranking (“Top Firms”).
The report uncovers how top firms are adapting to the current landscape and outperforming their peers across the globe—from San Francisco, and Menlo Park to beyond Silicon Valley in hubs like New York, London, and Berlin. Read on for the key takeaways and explore the report for a deeper analysis.
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Key takeaways:
- The VC landscape is facing greater concentration and competition, with AI activity largely driving industry growth.
- Top Firms are investing in fewer but larger deals with higher growth potential.
- Portfolio support is a key priority for Top Firms, who are making a rising number of targeted introductions to drive growth and reinforce limited partner (LP) confidence.
- In today’s competitive landscape, outbound deal sourcing is becoming essential, with firms leveraging targeted outreach, research, and data-driven strategies.
1. Selectivity reigns king
When we asked nearly 300 dealmakers about the most significant factor impacting VC deal flow this year, 42% cited competition. The data from our benchmark report reinforced this trend.
Throughout 2024, Top Firms worked on more than twice as many deals as All Firms. Despite this dominance, Top Firms’ deal flow was significantly lower; they ended 2024 with 55% fewer deals year-over-year. The key reason? Selectivity.
Top Firms are focusing on fewer, but larger, deals—likely backing startups with stronger paths to growth and higher valuations in top-performing sectors like AI and enterprise software. The data shows that average deal size is increasing across all stages, from seed to early-stage venture (Series A and Series B), and continuing into late-stage and private equity rounds.
To learn the other reasons driving Top Firm’s dominance, read the report.
2. Top VCs are doubling down on portfolio support
A key function of venture capitalists is providing support—making sure that portfolio companies have the resources (both financial and otherwise) they need to grow and operate efficiently. Almost half (48%) of firms view portfolio support as a top priority in 2025. One way firms provide support is by connecting founders, co-founders, and portfolio companies with top talent, potential vendors, and customers.
Throughout 2024, Top Firms consistently made more introductions between their networks and portfolio companies. For example, Top Firms made 28% or more introductions than All Firms each quarter last year.
Why is portfolio support a priority for Top Firms now? In a liquidity-challenged environment where general partners (GPs) are struggling to deliver returns, Top Firms are focusing on reinforcing LP confidence by deepening founder support.
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3. Outbound deal sourcing is becoming a necessity
With a backdrop of heightened competition, outbound deal sourcing is gaining traction across stages and marketplaces, and more venture firms are actively reaching out to companies through targeted research, networking, or cold outreach.
In Q4 2024, All Firms added 4% more contacts to their networks and sent and received 17% more emails year-over-year—likely in an attempt to build the right relationships and get in on deals sooner.
Outbound sourcing is becoming a business imperative, where firms are leveraging not just their existing networks, but working hard to find and nurture new connections. As Andre Retterath, Partner at Earlybird Ventures, explains:
“Historically, around 70% [of deals] were mostly inbound, driven by a great brand—either firm brand or personal brand of the investor. We see that as competition increases among investors, a shift from mostly inbound to outbound—meaning investors need to [...] do their homework, desk research, be data-driven, [and reach] out to the most promising founders.”
To learn why dealmakers are focusing more on outbound and how they’re using data and technology to facilitate it, check out our 2025 private capital predictions report.
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How your firm can become more like a top venture capital firm
The top VCs are ahead because of a unique combination: well-maintained networks powered by underlying relationship intelligence technology that helps them monitor and nurture their most important relationship. Paired with a data-driven approach to deal sourcing and management, these firms have sharper, faster paths to conviction in a competitive market.
To stay competitive, firms need to evolve with the trends outlined in the report. Learn more about how relationship intelligence can help you find, evaluate, and close deals and other key strategies of top firms. Get your copy of Affinity’s 2025 venture capital benchmark report to find out:
- Key trends in deal flow and network activity
- Firm benchmarks to contextualize your VC’s performance
- The characteristics that set top firms apart
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FAQs
What distinguishes top VCs from others?
Top VCs are focusing on fewer, larger deals with strong growth potential. They also prioritize portfolio support, offering key introductions and resources to reinforce LP confidence. To learn more about their specific strategies, download the 2025 venture capital benchmark report.
Why is outbound deal sourcing so important now?
In an environment where 42% of dealmakers cite competition as the biggest factor impacting deal flow, more VCs are moving beyond inbound deal sourcing and proactively reaching out to startups through targeted research and data-driven strategies to secure deals earlier on.
What is venture capital?
Venture capital is a form of financing that provides early-stage, high-growth companies with capital, typically in exchange for equity. In today’s competitive landscape, top VCs are using a more selective approach to identify and back these high-potential companies.
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