Enterprise software captured 52% of all VC funding in 2025, Sapphire Ventures report finds

Enterprise software captured 52% of all venture capital funding in 2025, up from 41% in 2024 and an average of around 29% for most of the prior decade, according to Sapphire Ventures' 2026 Software x AI Report. Total enterprise software VC hit $263 billion in 2025, a 64% jump year-on-year and just 2% shy of the all-time 2021 record. From 2015 through 2020, enterprise software averaged about 28% of total VC. The report found that 17 of the 20 largest VC rounds of all time happened post-ChatGPT. In 2025 alone, there were 14 rounds of $1 billion or more in enterprise software, representing approximately $100 billion in capital. There were only 29 such rounds in the entire decade from 2015 to 2024 combined. Concentration has gone vertical. From 2015 to 2022, the top 20 deals averaged about 8% of total enterprise software VC funding. In 2025, they captured 41%. The top five deals alone claimed 30%. The report also found that more than 80 AI-native companies have crossed $100 million in annual recurring revenue. AI-native companies are compressing the time to $100 million ARR from a five-year horizon to under 18 months. AI-native teams generate $1 million to $5 million in ARR per employee, compared with $200K to $300K for classic B2B companies. AI-native gross margins range from 40% to 70%, below classic B2B's 70% to 90%, reflecting inference costs. Since the October 2025 peak, public enterprise software has lost $2.4 trillion in market cap. The Sapphire Broad Software Index is down 29% from peak. The Pure SaaS Index is down 30%. The median next-twelve-months revenue multiple for Pure SaaS sits at 3.1 times, down 80% from the December 2020 peak of 15.2 times.