Seed Funding Concentrates in Bay Area

Seed funding in the U.S. is experiencing a significant concentration in the San Francisco Bay Area, which captured 45% of total seed funding in 2025, up from 33% in 2024. While the Bay Area and New York remain the primary hubs for seed investment, startups outside these regions accounted for only 28% of funding, the lowest share on record. Despite this concentration, two-thirds of U.S. seed-stage startups are based outside the Bay Area, indicating a diverse startup landscape. The trend suggests a bifurcated funding environment where major hubs attract more capital, while smaller ecosystems continue to generate new companies.