Venture funding in the second quarter of 2026 reached $212.9 billion, marking the second-highest quarterly total on record and signaling continued strength in the tech investment landscape. However, a closer look from CB Insights reveals a highly concentrated market where a small number of outsized deals are driving the majority of activity. According to CB Insights’ analysis, mega-rounds—defined as large financings typically exceeding $100 million—accounted for 81% of all venture dollars deployed in Q2. This represents the largest private funding round in European defense tech history and brings the Munich-based firm’s total raised to $3.3 billion. CB Insights concluded that while headline funding numbers impress, the underlying dynamics suggest investors and founders must navigate increasing selectivity and specialization to excel.