Arkansas entrepreneurs secured more venture deals in 2025, but they had a smaller overall pool of venture dollars to share.

A new Arkansas Capital Scan released by the University of Arkansas tracks $197 million in angel, seed and venture funding across the state.

Within that total, venture capital investment fell 33% to $184.3 million, reaching its lowest level in five years.

At the same time, the number of venture deals rose 47% to 28, an important distinction in understanding the headline decline.

More completed deals do not necessarily mean a healthier financing environment when the typical company receives less capital.

The report found that five large deals accounted for 83% of all venture dollars raised statewide.

That concentration means a relatively small number of investments had an outsized effect on the annual total.

Angel and seed funding, often used by younger businesses, increased 60% to $12.7 million.

However, the number of angel and seed deals declined 8% to 22, suggesting a mixed picture rather than an across-the-board surge.

Northwest Arkansas accounted for 77% of the state's angel and seed deals, underscoring a regional imbalance in early-stage activity.

For business owners and founders in Little Rock and surrounding Central Arkansas communities, access to financing remains a practical issue.

Early investment can help a company hire staff, develop a product, test a service and reach customers.

When funding becomes concentrated, promising smaller ventures may face a more difficult path to growth.

The figures also suggest that statewide totals can conceal differences in what founders experience depending on their stage and location.

Investors may see an increasing number of opportunities while still committing less money to each transaction.

The report was commissioned by the Northwest Arkansas Council and prepared by the University of Arkansas Office of Entrepreneurship and Innovation, with funding from the Walton Family Foundation.

Now in its sixth year, the Capital Scan also looks at other financing sources, including crowdfunding and certain federal grants.

For Central Arkansas, the opportunity is to turn entrepreneurial ideas into fundable, sustainable companies.

Local founders, economic development groups and lenders can use the findings to identify where early-stage financing and business support may be most useful.

The latest numbers do not predict what will happen in 2026, but they provide a useful baseline for tracking the region's entrepreneurial economy.