The Q3 2025 report on private markets reveals significant growth in the U.S. venture capital sector. Startups utilizing Carta raised $27.3 billion in Q3, marking a 5% increase from the previous year and a striking 48% rise compared to two years ago. This figure represents the highest quarterly amount in three years, indicating a robust recovery in fundraising activities. Key trends highlight a consistent upward trajectory in early-stage valuations. The median pre-money valuation for seed rounds reached $16 million, a 14% increase year-over-year. Series A valuations also hit a record at $49.3 million. Notably, down rounds—where a startup raises funds at a lower valuation than before—occurred in only 17% of new venture rounds, the lowest rate in nearly three years. The San Francisco Bay Area remains dominant, bringing in $8.1 billion in new funding, significantly outpacing other major metros. Throughout the first three quarters of 2025, startups raised a total of $79.8 billion, which is about 80% of the total venture funding from 2024. The number of funding rounds decreased, with only 1,131 new events in Q3, making it the second-slowest quarter for deal-making in six years. However, the average size of funding rounds has increased, reflecting a trend toward larger investments in fewer rounds. In terms of stage distribution, Series A deals accounted for nearly a quarter of all VC investments, while seed rounds made up about 40% of the deal count but contributed only 9.4% of total funding.