India is set for a surge in venture capital (VC) investments driven by artificial intelligence (AI), with global funding more than doubling to a record $330.9 billion in the first quarter of 2026. According to KPMG, global VC funding sharply increased from $128.6 billion in Q4 2025 to $330.9 billion in Q1 2026, with a shift towards fewer but larger transactions.
Nitish Poddar, Partner and National Leader, Private Equity at KPMG in India, stated that AI-first businesses are expected to drive the next phase of VC investment growth in India. The report highlighted that AI is becoming a key investment theme in India, despite the country being at a nascent stage in AI adoption and service delivery.
The Americas accounted for over 80% of the total global VC funding, with ten megadeals worth over $2 billion each contributing more than $206 billion to the total investment value. Majority of these deals were focused on AI companies, particularly in the US.
Sector-wise, software attracted a record $225.2 billion in VC funding in Q1 2026, making it the top destination for investments. Global exit value also more than doubled to $413.5 billion during the quarter, driven by large mergers and acquisitions, while IPO activity remained subdued.
