Startup and Venture Investment News — Friday, August 1, 2025: AI Boom, IPOs, and Global Deals

The global startup ecosystem continues to confidently revive and grow by the end of July 2025. After a prolonged downturn, investors worldwide are actively financing tech companies again: record funding rounds are being secured, and startup plans for public listings are back in the spotlight. Major funds and corporations are returning to aggressive investments, initiating new investment programs, while governments across various countries are ramping up support for innovation, striving not to fall behind in the global tech race. The first half of 2025 marked the strongest venture investment volume since 2021, instilling additional optimism in the market. Venture deals now encompass all regions—from Silicon Valley and Europe to Asia, the Middle East, Africa, and Latin America. Even local markets, such as those in the CIS countries, are trying to catch the wave of venture growth in spite of external constraints.

Below are the key events and trends shaping the current agenda for the venture market as of August 1, 2025:

Continued IPO Wave. Successful stock market debuts of tech "unicorns" and new applications confirm that the long-awaited "window" for exits remains open.
Mega Funding Rounds and New Unicorns. Unprecedented investments are raising startup valuations to record levels, particularly in the field of artificial intelligence and related technologies.
Return of Large Investors and Mega Funds. Major players are launching record venture funds and increasing investments, refilling the market with capital and enhancing risk appetite.
Industry Diversification. Investors are putting money not just into AI but also into fintech, climate projects, biotechnology, defense developments, and even crypto startups, broadening the horizons of the venture market.
Consolidation and M&A Deals. A wave of large mergers, acquisitions, and strategic investments is reshaping the industry's landscape, opening new opportunities for exits and consolidation of companies.
Global Expansion of Venture Capital. The investment boom is reaching new markets—from the Persian Gulf and Southeast Asia to Africa and Latin America—creating their own tech ecosystems.
Local Focus (Russia and CIS). Despite restrictions, new funds and initiatives are emerging to develop local startup ecosystems that attract investor attention to the region.

IPO Wave Continues: The Window to Go Public Remains Open

The global IPO market is steadily reviving after a prolonged silence. In Asia, Hong Kong has sparked a new wave of IPOs: in recent weeks, several large tech companies have successfully gone public there. For instance, the Chinese battery manufacturer CATL raised about $5.2 billion, while pharmaceutical giant Hengrui and food conglomerate Haitian each raised about $1.3 billion. These high-profile debuts indicate that regional investors are once again ready to actively invest in public offerings. The listing queue in Hong Kong includes other heavyweights as well— for example, chip developer Montage Technology plans to raise up to $1 billion, signaling a revival of IPO activity, at least in the Asian markets.

In the United States and Europe, the situation is also improving significantly. American fintech unicorn Chime recently debuted on the stock market, soaring more than 30% on its first trading day, making it one of the largest fintech IPOs of the year. This success encourages others. Design platform Figma has officially conducted its listing: its IPO was valued at approximately $1.5 billion (with the company’s revenues reaching $749 million in 2024) at a valuation of around $15–20 billion. Figma's shares began trading up, confirming high investor demand for tech placements. A number of notable startups (including payment service Stripe and social platform Reddit) are also considering the public market in the second half of 2025, evaluating favorable conditions. In emerging markets, their own significant listings are on the horizon: Indian e-commerce leader Meesho has announced IPO plans that could become one of the largest in the history of the Indian tech sector.

The continuation of the active IPO wave is vital for the entire venture ecosystem. Successful stock market exits finally provide venture funds an opportunity to realize profits and channel capital into new projects. Despite ongoing investor caution, the long-open "window" for public listings is encouraging more and more startups to prepare for listing.

Mega Rounds and New Unicorns: Investments Hit Records

The artificial intelligence sector remains the primary driver behind the venture boom of 2025, setting new financing records. Investors around the world are eager to invest in AI leaders, pouring colossal amounts into promising projects. Nearly every week, new mega rounds are announced, reinforcing AI's status as a primary magnet for venture capital. For instance, startup Thinking Machines Lab (led by former OpenAI director Mira Murati) raised approximately $2 billion in an early-stage round, valuing the company at about $12 billion, highlighting the incredible appetite of investors. Elon Musk’s startup xAI closed a record funding round: around $5 billion was raised in equity and another $5 billion through debt instruments, providing the project with colossal resources to develop its AI platform and data center infrastructure. According to insider estimates, xAI's value now exceeds $100 billion, placing the company among the most valuable private firms globally. Significant investment is also flowing into Safe Superintelligence (a project co-founded by OpenAI’s Ilya Sutskever)—industry reports indicate it raised around $2 billion at a valuation exceeding $30 billion for the development of safe AI systems. Furthermore, there are reports that another AI industry leader, Anthropic, is in the final stages of negotiations for a new round of $3–5 billion, potentially raising its valuation to an astounding $170 billion.

Such mega deals are giving rise to a new wave of "unicorns" and even "decacorns" (private companies valued over $10 billion), especially in the AI sector. According to industry analysts, in the second quarter of 2025, up to 45% of all venture funding globally went to AI projects. Moreover, investors are attracted not only to developers of basic AI models and platforms but also to specialized solutions—from medical data analysis and financial analytics to business process management. This widespread "AI frenzy" continues to shape the venture market agenda, ensuring an unprecedented influx of capital, even though some experts warn of overheating risks.

Meanwhile, investors are actively supporting other rapidly growing segments, leading to the emergence of new unicorns apart from AI. Recent examples of large deals in recent days include:

Israeli startup Cato Networks (cloud cybersecurity) raised $359 million (valuation ~ $4.8 billion).
Fintech startup Ramp (USA, corporate expense management service) secured $500 million (valuation increased to approximately $22.5 billion).
Investment software platform Juniper Square (USA) raised $130 million (valuation ~ $1.1 billion).
Content creation service Substack (USA) received $100 million (valuation ~ $1.1 billion).

Collectively, these and other deals have sharply raised valuations of many companies. In the first half of 2025 alone, several dozen new unicorns (valued at over $1 billion) emerged, with some quickly reaching "ultra-unicorn" status (over $5 billion). Record investments in AI, fintech, biotech, and other innovative niches confirm a resurgence of investor confidence in promising technologies.

Return of Mega Funds: Large Investors Refill the Market with Capital

The largest investment players are triumphantly returning to the venture scene, indicating a renewed appetite for risk. Japanese conglomerate SoftBank is once again focusing on large-scale investments: Masayoshi Son has announced the formation of the Vision Fund III with a target size of approximately $40–50 billion, centered on advanced technologies (with an emphasis on AI and robotics). Sovereign wealth funds from the Persian Gulf countries have also become more active: they are funneling billions into tech projects and launching state mega-programs to develop the startup sector, creating their own tech hubs in the Middle East. Simultaneously, new venture funds are being established worldwide—both independent and corporate—that are attracting significant institutional capital for investments in high technologies.

Notably, reputable Silicon Valley firms are also expanding their presence. For instance, venture giant Andreessen Horowitz (a16z) is raising a record fund of approximately $20 billion, predominantly focused on investments in late-stage American AI startups. According to industry research, venture funds in the U.S. currently hold unprecedented reserves of uninvested capital (over $300 billion of "dry powder") ready for investments as market confidence returns. Such flows of "big money" are filling the ecosystem with liquidity, providing fuel for new rounds and supporting the growth of promising companies’ valuations. The return of mega funds and large institutional investors not only intensifies competition for the best deals but also instills confidence in the industry’s further capital influx.

Investment Diversification: Fintech, Climate, Biotech (and Even Crypto) on the Rise

In 2025, venture investments are spreading across an increasingly broad array of industries, moving beyond just artificial intelligence. Following last year's downturn, fintech has noticeably revived: large rounds are occurring not only in the U.S. but also in Europe, Asia, and emerging markets. A notable return of large deals in financial technologies is evidenced by New York-based platform iCapital, which raised $820 million from a consortium of investors at a valuation exceeding $7.5 billion, signaling renewed interest in the sector. At the same time, there is a boom in "green" technologies: venture funds are eagerly financing climate projects—from renewable energy and electric transport to innovative nuclear technologies. For instance, Swiss startup Climeworks secured $162 million to further the development of direct CO₂ capture technology from the atmosphere (bringing its total raised to over $1 billion). In the field of nuclear fusion, European companies have set a new financing record (around €290 million in the first half of 2025), while American projects lead in mega rounds (for instance, Commonwealth Fusion Systems secured about $1 billion).

In biotechnology and medtech, deals are also growing larger: AI-enabled platforms for drug discovery, new genetic solutions, and other medical startups are accumulating substantial capital from funds. For instance, American startup Centivax raised $45 million for developing a universal flu vaccine. The cybersecurity segment remains one of the market’s drivers (as exemplified by the Cato Networks deal mentioned above). Crypto and Web3 startups are beginning to revive after a deep slump— in the second quarter of 2025, venture investments in blockchain projects exceeded $10 billion (the highest since 2022), indicating a gradual return of interest in this field. Thus, the venture market is demonstrating increasing maturity: capital is now being distributed across a wide variety of sectors—from finance and energy to agritech and defense. Investors are diversifying their portfolios, making the innovative ecosystem more resilient to overheating in individual industries.

Consolidation and M&A Deals: Consolidation of Players

High valuations for companies and fierce market competition are pushing the startup ecosystem towards consolidation. Major mergers and acquisitions are once again coming to the forefront, reshaping the balance of power in the industry. In Southeast Asia, a potential mega deal is being discussed: the ride-hailing and delivery leader Grab has resumed merger negotiations with Indonesian tech holding GoTo. Uniting with an estimated total valuation of around $25 billion would create a dominant platform in the region. The mere fact of returning to dialogue between Grab and GoTo reflects the desire of players to optimize costs and strengthen positions through collaboration.

In the U.S. and Europe, tech giants have also accelerated their acquisition of promising projects. Google recently completed a record acquisition of cloud cybersecurity startup Wiz for $32 billion—this is the largest tech deal of the year, significantly boosting Google's position in the cloud services market. Simultaneously, Meta* invested about $14 billion in startup Scale AI (data labeling platform), acquiring approximately 49% of shares at a valuation of about $28 billion. This strategic investment underscores the tech giants' drive to secure key AI competencies. Furthermore, amid the demand for AI infrastructure, American cloud provider CoreWeave announced the acquisition of mining company Core Scientific for $9 billion, intending to repurpose its data centers (originally built for crypto mining) for AI needs.

Interest in defense and aerospace technologies is also leading to record deals. Europe is witnessing unprecedented growth in this segment: German startup Helsing raised around €600 million in a funding round led by the investment fund of Spotify’s founder, boosting the company's valuation to ~€12 billion. As a result, Helsing has entered the top five most highly valued young companies in Europe, confirming the trend towards strengthening the private defense sector. Overall, the current activity in M&A and large venture deals reflects a reorganization and maturation of the industry. Mature startups either merge with one another or become targets for acquisition by corporations, while venture funds finally gain the long-awaited opportunities for profitable exits from their investments.

Global Expansion of Venture Capital: New Markets and Regions

The venture boom of 2025 is taking on a truly global scale, reaching markets that were recently on the periphery of the tech scene. Countries in the Middle East are demonstrating record activity: with the support of government initiatives, large funds and hubs for developing startups are being created, and an increasing number of regional projects are receiving funding. In the Gulf States, mega projects aimed at diversifying the economy through technology are being launched, while local venture funds are becoming leading investors both domestically and abroad.

New "unicorns" are emerging in Southeast Asia: tech companies in the fields of e-commerce, fintech, and logistics are achieving valuations over $1 billion amid the rapid growth of the digital economy and vast user bases. India and Indonesia are also experiencing a surge in venture activity: in recent weeks, several Indian and Indonesian startups have closed funding rounds worth tens and hundreds of millions of dollars, while successful companies are announcing plans for IPOs. The geographical expansion of venture capital intensifies competition for the best projects: today, funds and investors are tracking promising teams from Singapore and Dubai to Nairobi and São Paulo.

Africa is also experiencing an unprecedented influx of venture investments, leading to the rapid development of local startup ecosystems. From Nigerian fintech projects to Kenyan agri-tech startups, an increasing number of African teams are attracting international capital for scaling. Latin America is keeping pace: in 2025, Mexico surpassed Brazil for the first time in venture investment volumes, while startups in the region actively secure funding in fields such as fintech, e-commerce, and delivery. New innovation centers in Mexico, Brazil, and other countries enhance global competition for capital and talent.

Russia and CIS: Local Focus Amid Global Trends

Despite external constraints, active steps are being taken in Russia and neighboring countries to develop their own startup ecosystems, aligned with global venture trends. At the St. Petersburg International Economic Forum (SPIEF-2025), a new venture fund from PSB Bank was announced in partnership with others (target amount – 12 billion rubles) to invest in dual-use projects (drones, AI, robotics, and other high-tech areas). Besides government institutions, private players have started to show activity: for example, venture firm Kama Flow launched a new fund of 10 billion rubles for investments in mature startups. Even under sanctions, the market is seeking opportunities to fund priority technologies and is striving to cultivate its own successful "unicorns."

Simultaneously, some regional startups are reaching new heights. For instance, the Krasnodar foodtech project Qummy raised 440 million rubles at a valuation of ~2.4 billion rubles, preparing for an IPO—this case demonstrates the seriousness of even regional initiatives. Additionally, a government fund, Qazaqstan Venture Group, was established in Kazakhstan with a volume of $1 billion to support AI startups. In July 2025, Russia also eased regulations for foreign investors: they were allowed to acquire shares in domestic companies and freely withdraw funds. These steps are aimed at reviving international investments and integrating into the global venture capital market.

While the scale of the venture market in the region is still relatively modest, the groundwork for future growth is gradually being laid. Investors are shifting their attention towards more mature projects with proven business models, while the government is expanding support through the development of IT education, accelerators, and special tax regimes. Local startups are striving to enter global value chains, leveraging their strengths in advanced technology areas (AI, Big Data, and others).

Conclusions: Cautious Optimism and Quality Growth

By the beginning of August 2025, sentiments in the venture industry remain cautiously optimistic. Successful IPOs and large funding rounds provide grounds to believe that the bottom of the downturn has been reached; however, investors continue to approach opportunities selectively, favoring companies with sustainable business models and paths to profitability. A significant influx of capital into AI, fintech, and cybersecurity instills confidence in the industry's further development, yet funds pay increased attention to diversification and risk management. If the current momentum is maintained, the second half of 2025 may witness further deal growth, but the key priority will remain the quality of growth and the long-term sustainability of startups.