Venture funding surge adds to the case for U.S. stocks
DataTrek's Jessica Rabe says a deeper startup pipeline can support public-market innovation, even as most venture-backed companies fail.
Key takeaways
- Global venture funding was 53% above 2025 levels in the first three quarters, Rabe said, citing Crunchbase.
- Rabe described venture capital as a source of research and development for public-market investors.
Global venture funding was 53% above 2025 levels in the first three quarters, according to Crunchbase data cited by DataTrek's Jessica Rabe. She argues that the increase matters to public-market investors as well as those who can invest in private companies.
Rabe said venture capital acts as a research-and-development engine for stock investors. Venture firms identify, fund and scale companies with the potential to disrupt markets, she wrote.
Most of those companies will fail, the article notes, and a large share of the private bets is AI-based. Rabe said successful companies could become major market players, and called the innovation pipeline a strength of U.S. capital markets.
This article was produced with the help of AI technology. Source: Yahoo Finance
