2025 October Event Recap

VC Talk: Venture Capital Investing Trends in North America
Guest speaker: Yigang Yang, WaterStar Capital
Hosted by AAIA on October 24th, 2025

The seminar on Venture Capital (VC) Investing Trends in North America provided an in-depth overview of current market dynamics, highlighting the transformative impact of artificial intelligence (AI), digital infrastructure, and advanced manufacturing on the investment landscape.

Overview

Since February 2022, the United States has entered what Mr. Yang describes as the Fourth Industrial Revolution, characterized by rapid advancements in semiconductor technologies, AI applications, and manufacturing innovation. Venture capital activity has increasingly concentrated on AI-related high technology sectors, where investors prioritize firms capable of integrating AI across diverse functions and creating sustainable, revenue-generating solutions.
Venture capital investors are emphasizing whether a company can:

  • Integrate AI to create multiple or comprehensive solutions, rather than simple tools (e.g., document editing).
  • Generate direct revenue streams from AI applications.

Supporting US Market Highlights:

  • Manufacturing growth: Manufacturing construction spending surged from approximately $75 billion in 2017 to roughly $220 billion in 2023, reflecting renewed domestic and global investment in manufacturing.
  • Digital infrastructure: U.S. corporations invested over $800B (2014–2023) in this area; the country now hosts 5,000+ data centers, more than all other major economies combined.
  • R&D dominance: Big Tech’s R&D spending ($173.7B) outpaces total U.S. VC investment ($105.3B), underscoring the innovation gap.
  • Emerging sectors: Supply chain technology, especially last-mile and drone delivery, has seen strong recent growth.
  • AI leadership: The U.S. houses 43% of global AI companies, consolidating its position as the global AI hub.
  • ESG and EV challenges: Revenues in these sectors have declined in recent years.
  • Corporate distress: U.S. bankruptcy filings reached a 14-year high in 2024, highlighting that AI has been reforming the industry and market focus.

Investment & Talent Trends

  • Advanced manufacturing funding rose 46% QoQ (Quarter on Quarter), signaling investor optimism in tangible innovation.
  • AI-driven decision-making is transforming management; leaders are now expected to combine data fluency, statesmanship, and interpersonal skills.
    Many emerging executives come from consulting backgrounds.
  • Robot manufacturing remains a low-margin industry, struggling to compete with major players like Musk’s AI-powered Humanoid robots.
  • Patents and intellectual property (IP) are now critical factors in VC evaluations.

Takeaways for Startups

  • Build a forward-looking strategy that anticipates industry shifts.
  • Develop proprietary technology and patent strategy to attract investors.
  • Position AI as a core driver of value creation, not just an add-on feature.
  • Stay adaptive as the balance between innovation and automation reshapes the market.

Conclusion and Appreciation:

Mr. Yigang Yang’s talk provided a comprehensive and forward-looking analysis of the North American VC environment. His insights illuminated the crucial balance between technological advancement and strategic foresight, offering invaluable guidance for investors, entrepreneurs, and students alike.

We extend our sincere gratitude to Mr. Yang for his time, expertise, and generosity in sharing his knowledge. His perspective not only broadened our understanding of global investment trends but also inspired us to think more boldly about innovation and leadership in the era of AI.