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Startups are navigating a transformed funding landscape. Big data, healthtech and AI companies lead seed to Series A graduation rates, while defense tech is seeing unprecedented investment. Regional power centers are shifting—with New York overtaking San Francisco in fintech deals. Our 2025 report examines the critical trends reshaping success in the innovation economy:

  • Market dynamics are tightening graduation rates, which have ranged between 10% and 33% of startups advancing from seed to Series A in recent years.
  • The U.S. Department of Defense is helping accelerate startup innovation across 14 critical technology areas with a requested $17.2 billion R&D budget.
  • Supply chain disruption has sparked sustained investment in automation, particularly in autonomous delivery and robotics.
  • Regional innovation hubs are evolving. The New York metro now captures 30% of U.S. fintech deals, while Austin, Texas, defense tech’s share of deals is triple the national average. 
  • Quantum computing investment continues growing despite broader venture pullback, with U.S. companies leading global development.

Contributors

Ashraf Hebela

Ashraf Hebela

CFA, Co-Head of Technology Banking & Head of Startup Banking

JPMorgan Chase Bank, N.A. Member FDIC. Visit jpmorgan.com/commercial-banking/legal-disclaimer for disclosures and disclaimers related to this content.