2025 in Review: San Diego’s Biggest VC Rounds and M&A Deals
A roundup of San Diego’s top venture capital deals and acquisitions in 2025.
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SAN DIEGO — 11 San Diego-based companies secured venture funding rounds totaling more than $100 million-plus in 2025, according to data collected by Connect.
The largest round went to Shield AI, which raised $240M in a Series F round at a $5B valuation. Crystalys Therapeutics followed, emerging from stealth and announcing a $205M Series A round in September 2025.
Deal activity in San Diego declined slightly, with deal count down 6% year over year, from 161 to 152.
Despite a more selective investment environment, dozens of San Diego life science companies raised mega-rounds in venture capital. A total of three companies went public, including Aardvark Therapeutics, Carlsmed and Aptera Motors.
The local startup ecosystem ranked No. 7 in venture capital funding behind Seattle and Austin, according to Carta, which evaluated total seed through Series C rounds across major U.S. ecosystems in 2025.
Top Technology Companies in 2025
Shield AI. artificial intelligence and defense tech drone company, raised $240M.
Cybereason, a cybersecurity company with military ties, raised $120M.
Netradyne, a telematics and fleet safety solutions company, raised $90M.
Flock Freight, a freight tech company improving supply chain, raised $60M.
Clearspeed, a voice-based risk assessment company, raised $60M.
Top Life Science Companies in 2025
Crystalys Therapeutics, a biotech focused on therapeutic products, raised $205M.
Timberlyne, a biotech focused on autoimmune disorders, raised $180M.
Protego Biopharma, a biotech focused on small molecule therapy, raised $130M.
Aspen Neuroscience, a biotech focused on unmet medical needs, raised $115M.
RayThera, a biotech focused on developing immunology drugs, raised $110M.
Top Biotech M&A Deals in 2025
Founded in 2012, Avidity Biosciences was acquired by Novartis for $12B.
Founded in 2012, Cidara Therapeutics was acquired by Merck & Co for $9.2B.
Founded in 2021, Capstan Therapeutics was acquired by AbbVie for $2.1B
Founded in 2007, Regulus Therapeutics was acquired by Novartis for $1.7B.
Founded in 2018, Arthrosi Therapeutics was acquired by Sobi for $1.5B.