VCs are investing more money in social media startups this year after a dismal 2025
The number of venture capital deals backing social media startup has declined since 2021. The sector is seeing new signs of life, though.
Since 2021, venture capital deals in the social media category have steadily declined, with a rebound in overall deal value driven by AI-powered social investments. The number of deals has declined each year since 2021's peak, when there were 239 deals totaling $2.2 billion, according to PitchBook data of US transactions. So far in 2026, as of July 21, there have already been over 50 deals totaling $355 million in the space, surpassing 2025's dollar flow.
Fizz, an anonymous social app for Gen Z, and Corner, a social mapping app, are among the startups raising capital. Across all venture capital deals in 2025, $513 billion in deal flow was estimated, with AI and SaaS making up a bulk of this. Investors, such as Menlo Ventures, Forerunner, and newly founded funds, are backing social startups across sectors like networking, dating, and AI. The question remains, however, what will actually stick in this rapidly changing landscape.
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