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SoundCloud acquires decentralized music platform Nina Protocol months after its shutdown
Airbus Migrating 70 Critical Apps From AWS to France's Scaleway
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Google Brings Air-Gapped Gemini to India for Regulated Enterprises
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The post Google Brings Air-Gapped Gemini to India for Regulated Enterprises appeared first on TechRepublic.
AWS Billion-Dollar Software Bug Explained
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Apple Sued Over Hide My Email Privacy Claims
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Claude for Chrome Flaw Puts Gmail at Risk From Rogue Extensions
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UK Puts AWS, Azure, Google Cloud, and Oracle Under Direct Financial Oversight
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Venture funding drops in Seattle area as AI boom reshapes startup world

Seattle-area startups raised $2.7 billion in venture funding through the first half of 2026, across 163 deals, down about 40% from $4.5 billion in 210 deals during the same period a year ago.
The figures come from the recently released PitchBook-NVCA Venture Monitor report for Q2 2026. The decline in capital reflects fewer deals across the board in the Seattle region, with much of the funding going to a handful of large rounds for energy, cybersecurity, and space startups.
Here is the regionβs top 5 for the second quarter, as tracked in the report:
- Helion Energyβs $465 million Series G round was the biggest deal of the quarter.
- Starcloud raised $170 million for space-based data centers.
- XBOW pulled in $155 million for autonomous cybersecurity systems.
- Starfish Space closed about $110 million for spacecraft servicing.
- Gradial raised $65 million for its agentic enterprise software platform.
Against the AI grain: In Q2 2026 specifically, startups in the Seattle area closed 85 deals totaling $1.5 billion. That was down from 101 deals and $2.3 billion in the same quarter a year ago, but up from Q1 2026, which PitchBook revised to 78 deals and $1.2 billion as part of its regular data updates.

Heavy infrastructure investments by Microsoft and Amazon have helped to establish the Seattle area as an AI hub, but the regionβs pure-play AI startups, on the whole, arenβt seeing investment on the same scale as some of their peers in Silicon Valley and other tech hubs around the country.
That creates a disconnect with the larger U.S. venture capital market. AI companies accounted for 86% of all U.S. venture dollars in the first half of the year, according to the PitchBook-NVCA data.
Nationally, it was a record half: U.S. startups raised $412.7 billion through June, already surpassing the full-year record of $358.6 billion set in 2021. But the number is misleading. Deals of $100 million or more accounted for 87.5% of the total, and AI companies captured 86 cents of every venture dollar.
OpenAI and Anthropic alone absorbed roughly 43% of all global venture capital in the first half of the year, by one estimate. The Bay Area, home to both, pulled in $319 billion, about three times its H1 2025 total.
Strip out those two companies and the national picture looks very different. Seed funding fell 27% nationally in the first half, and first-time fund formation is on pace for its lowest year since 2016.
Regional trends: In that way, whatβs happening in the Seattle area reflects the current realities of the market. However, the region is also slipping relative to its peers in the latest numbers.
Among the 10 largest U.S. metro areas for venture funding, Seattle ranked seventh by capital invested in the first half of the year, down from fifth in H1 2025. By deal count, the region was last in the top 10.
The data used in this analysis covers the Seattle-Tacoma combined statistical area (CSA), a broader regional boundary that includes communities beyond the core metro region.
Political climate: Washingtonβs shifting tax and economic landscape adds another variable.
The state now taxes capital gains at up to 9.9%, a new millionairesβ tax takes effect in 2028, and legislators this year floated taxing the federal QSBS exemption that startup founders and early employees rely on when they sell shares at exit. That bill didnβt pass, but generated enough alarm to cause a backlash from startup community leaders and investors.
Looking ahead: Blue Origin, Jeff Bezosβ Kent-based space company, is reportedly seeking up to $10 billion in what would be its first outside funding round. A deal that size would be larger than every other Seattle-area venture round this year combined.
AI-driven Datacenter Builds Increased Microsoft's Emissions 25% In One Year
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This 20TB Cloud Storage Lifetime Subscription is on Sale for $350
Instead of paying iCloud or Dropbox more every month, get a 20TB cloud storage that stays with you for life.
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Your Data, Always Within Reach β 2TB of Lifetime Cloud Storage Is $59
Say goodbye to recurring fees and complicated systems with FileJumpβs straightforward and secure cloud storage platform β with lifetime access to your files.
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Azure CLI Password Spray Attack Exposes Microsoft 365 MFA Gap
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Metaβs Reported AI Cloud Plans Are Not Yet Ready for APAC Procurement
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Appleβs βHide My Emailβ Privacy Flaw Exposes Real Email Addresses
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Meta Could Sell AI Compute Capacity as Infrastructure Costs Rise
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