Startup and Venture Investment News — Wednesday, July 30, 2025: AI Investment Boom, Surge in IPO Activity, and Wave of M&A Deals

By the end of July 2025, the global startup ecosystem is showing a strong revival and growth after several years of decline. Investors are once again actively allocating capital to technology companies: record deals for fundraising are taking place, and startups’ plans for IPOs are returning to the forefront. Major corporations have resumed bold venture investments, launching new funds and initiatives, while governments worldwide are increasing support for innovation, eager to keep pace in the global tech race. Preliminary data indicates that in the first half of 2025, global venture capital funding reached its highest level since the beginning of 2022. In the second quarter of 2025, global investments in startups totaled approximately $90–91 billion, representing an increase of around 10–12% from the previous year. Although the numbers are still far from the peak levels of 2021, current growth signals the return of private capital to the startup market and the emergence of a new venture boom.

Venture deals are now encompassing all regions — from Silicon Valley and Europe to Asia, the Middle East, Africa, and Latin America. North America has experienced a particularly notable upturn (accounting for up to 70% of all investments, a significant portion of which is directed toward the AI sector). In Europe, a restructuring of the landscape is evident: in 2025, Germany surpassed the UK in venture capital investment for the first time in a decade, signaling growth in continental ecosystems. Meanwhile, the dynamics in Asia are uneven — in China, startup financing has dropped to multi-year lows, while India and Southeast Asia continue to attract significant capital. Even local markets, such as those in the CIS, are eager to catch the new wave of growth despite external constraints. The overall picture indicates a resurgence of the global venture boom, although market participants remain cautious and selective.

Below are key events and trends defining the current venture market agenda as of July 30, 2025:

• Ongoing surge in the IPO market. Successful IPOs and new filings from tech "unicorns" confirm that the long-awaited "window" for exits remains open.
• Record funding rounds and new "unicorns." Unprecedented investment volumes are raising startup valuations into the multibillion-dollar range, especially in the artificial intelligence sector.
• Return of major investors and mega-funds. Leading players are launching large-scale venture funds and increasing their investments, once again flooding the market with capital and enhancing the appetite for risk.
• Industry diversification of investments. Venture capital is being directed not only to AI but also to fintech, climate projects, biotechnology, defense developments, and even crypto-startups, broadening market horizons.
• Consolidation and M&A deals. A wave of large mergers, acquisitions, and strategic investments is reshaping the industry landscape, opening new avenues for exits and company scaling.
• Global expansion of venture capital. The investment boom is reaching new markets — from Gulf states and South Asia to Africa and Latin America — forming their own tech ecosystems.
• Local focus (Russia and CIS). Despite constraints, new funds and initiatives for developing startup ecosystems are emerging in the region, capturing investors' attention to the local market.

The IPO Wave Continues: "Window" for Exits Remains Open

The initial public offering (IPO) market has confidently revived after a prolonged lull and continues to gain momentum. In Asia, a new wave of IPOs was initiated by Hong Kong: in recent weeks, several large tech companies successfully listed, raising billions of dollars in total. For instance, one leading battery manufacturer raised approximately $5 billion at its listing, while several fintech and biotech firms conducted IPOs in the range of $1–2 billion each. In the USA and Europe, the situation is also improving: the recent debut of fintech "unicorn" Chime on the New York Stock Exchange resulted in a stock price increase of over 30% on its first trading day, solidifying the company’s valuation at around $15 billion. This success is inspiring other players — the design platform Figma has begun its IPO roadshow and is preparing to raise nearly $1 billion with a valuation of around $16 billion. Several well-known startups (including payment service Stripe and social platform Reddit) are eyeing the public market in the second half of 2025 amid favorable conditions.

Even companies from the crypto industry are entering the IPO market. Crypto custody service BitGo announced the filing of a confidential listing application, reflecting renewed investor interest in this recently downturned sector. Additionally, high-profile listings are taking shape in emerging markets: in India, the Middle East, and Latin America, several fast-growing companies have announced plans to go public. The wave of successful IPOs worldwide confirms that the "window" for entering public markets is once again open, and investors are ready to welcome new tech issuers.

Mega Rounds and New "Unicorns": Investments Break Records

The artificial intelligence sector continues to serve as the main magnet for venture capital in 2025, setting new funding records. In the first half of the year, unprecedented mega rounds took place: an investment consortium led by SoftBank invested about $40 billion in AI developer OpenAI — the largest private financing in the history of the tech sector. Startup xAI, founded by Elon Musk, raised approximately $10 billion in total (including venture and debt capital), achieving a valuation of over $100 billion and becoming one of the most valuable private companies in the world. Corporation Meta invested $14 billion in AI data platform Scale AI, aiming to accelerate its own AI developments.

Just days ago, a new project founded by former OpenAI leaders attracted a record seed round of $2 billion at a valuation of around $12 billion — an unprecedented case for a startup at such an early stage. New massive deals continue to be announced weekly, pushing the valuations of promising companies to previously unseen heights. For example, defense technology startup Anduril raised $2.5 billion in its Series G round, doubling its valuation to around $30 billion, while Safe Superintelligence, founded by OpenAI co-founder Ilya Sutskever, secured around $2 billion in funding, underscoring the enthusiasm surrounding "safe" AI projects.

In total, dozens of new "unicorns" have emerged worldwide in the first six months of 2025 — private companies valued at over $1 billion. Some of them have swiftly ascended to "decacorn" status (valuations exceeding $10 billion). According to industry analysts, since the beginning of the year, more than 40 startups worldwide have crossed the billion-dollar threshold. Estimates suggest that nearly half of all venture funding in the second quarter was directed towards AI projects. Nonetheless, the excitement is not limited to AI alone: the return of significant capital to the market at large drives valuations in other segments as well. The new influx of capital and record rounds indicate that investors are keen to seize the opportunities presented by this new technology-driven revolution, once again turning to the potential of promising projects.

Return of Mega Funds: Large Investors Flood the Market with Capital Again

The largest investment players are triumphantly returning to the venture scene, signaling an increased appetite for risk. The Japanese conglomerate SoftBank is once again doubling down on large investments: Masayoshi Son officially announced the formation of the Vision Fund III, sized around $40–50 billion, focused primarily on advanced technologies, notably in the areas of AI and robotics. Sovereign funds from Gulf states have also become more active — they are pouring billions into tech projects and launching state mega-programs for developing the startup sector, creating their own tech hubs in the Middle East.

Simultaneously, new venture funds — both independent and corporate — are being established worldwide, attracting significant institutional capital for investments in high-tech industries. Renowned Silicon Valley firms are also expanding their presence: for instance, venture giant Andreessen Horowitz (a16z) is raising a record fund of around $20 billion for investments in American late-stage AI startups. According to industry research, venture funds in the USA currently hold record levels of uninvested capital (over $300 billion of so-called "dry powder") ready to be deployed as confidence returns to the marketplace. Such inflows of "big money" inject liquidity into the ecosystem, providing fuel for new rounds and supporting the growth of promising companies' valuations. The return of mega funds and large institutional investors not only heightens competition for the best deals but also instills confidence in the sector regarding ongoing capital influx.

Diversification of Investments: Fintech, Climate, Biotech (and even Crypto) on the Rise

In 2025, venture investments are being distributed across an increasingly broad range of industries, extending beyond artificial intelligence alone. After last year’s downturn, there is a noticeable rebound in adjacent sectors — investors are once again turning their attention to fintech, climate technologies, biomedicine, defense developments, and other fields. Below are key areas where venture investments are currently on the rise:

• Fintech: Large deals are returning in the financial technology sector worldwide. For example, the New York alternative investment platform iCapital raised around $820 million from a consortium of investors at a valuation of around $7.5 billion, signaling renewed interest in the fintech sector.
• Climate and Energy: Venture funds are actively financing "green" technologies — from renewable energy and electric mobility to innovative nuclear energy. For instance, the Swiss startup Climeworks secured over $160 million for its direct air capture technology (the total amount raised by the company exceeds $1 billion). In the area of nuclear fusion, European projects set new funding records (almost €290 million in the first half of 2025), while the American startup Commonwealth Fusion Systems raised around $1 billion for further developments.
• Biotech and Medtech: Significant rounds are taking place in biotechnology and medical startups. Platforms developing drugs using AI, genetic technologies, and other medtech projects are again attracting substantial capital. For example, biomedical company Altos Labs continues to raise hundreds of millions for research in extending human life, while the Greek project Centivax secured over €130 million for creating a next-generation universal vaccine.
• Defense Technologies: Investments in startups related to defense and security are increasing amid geopolitical tensions. Projects in the fields of drones, cybersecurity, space systems, and related areas are receiving support from both state funds and private investors looking to strengthen technological sovereignty. For instance, the American company Anduril, specializing in defense solutions with elements of AI, has secured significant funding to scale up production and develop new products.
• Crypto Industry: After the correction of 2022–2023, the crypto market is showing new signs of life. Venture deals in the blockchain sector are once again surfacing, though investors are acting selectively — primarily funding infrastructure solutions and financial applications built on cryptocurrencies. The emergence of clearer regulations (for instance, a law regulating stablecoins was passed in the USA this spring) has boosted market participants' confidence. Against this backdrop, even large crypto companies are preparing to go public, a prospect that seemed unlikely just a year ago.

Consolidation and M&A Deals: Scaling Up Players

High company valuations and fierce competition for markets are pushing the startup ecosystem toward consolidation. Large mergers and acquisitions are once again taking center stage, providing investors with exit opportunities and giving companies access to new technologies and scale. Records are being set for the size of exits: for example, Google agreed to purchase the cloud cybersecurity startup Wiz for approximately $32 billion — an unprecedented sum for a company from a venture portfolio. Additionally, several well-known startups worldwide are finding strategic buyers for deals valued in the nine and ten-figure range. Consolidation is impacting a wide array of industries: from fintech (e.g., the acquisition of regional neobanks by major players) to enterprise software and artificial intelligence.

Among the notable recent examples is Grammarly's acquisition of the email service Superhuman as part of its strategy to build an AI-powered productivity platform, as well as the activity of major IT corporations acquiring promising developments. The overarching trend is that both traditional tech giants and the unicorns themselves are increasingly becoming buyers of startups, aiming to solidify their positions. The wave of M&A deals is reshaping the industry landscape, providing startups with new exit paths and allowing investors to realize profits. This trend signals market maturity: successful companies either go public or integrate into larger firms, ultimately revitalizing the ecosystem and making room for new players.

Global Expansion of Venture Capital: New Markets and Regions

The venture boom of 2025 is taking on a truly global scale, encompassing markets that were recently on the periphery of the technology scene. Gulf states (e.g., UAE, Saudi Arabia, and Qatar) are actively investing in startups and building infrastructure to support technology development — from local accelerators to giant investment funds focused on technology investments. In Southeast and South Asia, there is a surge in entrepreneurial activity: India, Indonesia, Vietnam, and other countries in the region are seeing growth in later rounds and upcoming IPOs, reflecting the dynamics of their rapidly developing digital economies. In just the past few weeks, several Indian startups have closed funding rounds worth tens and hundreds of millions of dollars, and a number of unicorns in the region have announced plans to become public companies.

Africa is also witnessing an unprecedented inflow of venture investments, accelerating the development of local startup ecosystems. From Nigerian fintech projects to Kenyan agritech startups — an increasing number of teams on the continent are attracting international capital. Similarly, Latin America is not being left behind: in countries like Brazil, Mexico, and Chile, the number of venture deals is rising, and new unicorns are appearing as global investors seek opportunities in this region. The geographical expansion of venture capital intensifies competition for the best projects. Major investment funds are now closely monitoring promising startups from Singapore and Dubai to Nairobi and São Paulo, eager to discover the next "diamond" on the global tech scene. As a result, founders from various countries are now presented with unprecedented opportunities to attract capital, making the venture market more international.

Russia and CIS: Local Focus Amid Global Trends

In Russia and neighboring countries, active steps are being taken to develop their own startup ecosystems, taking into account global trends. At the St. Petersburg International Economic Forum (SPIEF 2025), a new venture fund was announced with the participation of the state bank PSB, targeting around 12 billion rubles for investments in dual-use projects — from drones and artificial intelligence to robotics. The PSB acts as the anchor investor for this fund, also attracting private capital; even amid sanctions, the market is seeking ways to finance priority technologies and cultivate its own unicorns.

Concurrently, some regional startups are reaching new heights. For instance, the Krasnodar foodtech project Qummy raised 440 million rubles at a valuation of approximately 2.4 billion rubles, preparing for an IPO — this case illustrates the seriousness of technological business aspirations in Russian regions. In Kazakhstan, the state fund Qazaqstan Venture Group has been established with a volume of $1 billion to support AI startups and a new wave of tech projects. Furthermore, in July 2025, the President of the Russian Federation signed a decree effectively easing restrictions for foreign investors: they are once again permitted to acquire shares in Russian companies and freely withdraw capital from the country. This move is intended to revive international investments in the economy and venture sector, despite the geopolitical situation.

Notably, individuals from the CIS are already achieving global success, integrating into the worldwide industry. For example, the AI startup Perplexity (founded by a Belarusian entrepreneur and based in the USA) recently attracted an additional funding round of approximately $100 million, bringing its valuation to around $18 billion. Another noteworthy example is the Dubai project Xpanceo, founded by a Russian and a Ukrainian: it received approximately $250 million in a Series A round at a valuation of $1.3 billion for developing "smart" augmented reality contact lenses. These cases affirm that innovative projects with roots in CIS countries can compete at the leading edge of the global tech arena.

While the scale of the venture market in the region is still smaller than in the West, the foundation for future growth is currently being laid. Investors are redirecting their focus to more mature projects with proven business models, while the government is expanding support — from developing IT education to creating a network of regional accelerators. Local startups aspire to enter global value chains, leveraging strong competencies in high-tech niches (AI, big data, cybersecurity, etc.). Despite various challenges, Russia and neighboring countries are gradually building their own venture landscape, hoping to eventually secure a respectable place in the global technological race.

Conclusions: Cautious Optimism

As we enter the second half of 2025, sentiments among venture investors remain cautiously optimistic. Record deals and successful IPOs instill confidence that the low point of the recent downturn has been passed; however, lessons learned from previous years restrain the market from excessive euphoria. Investors are now much more attentive to the quality of startup growth and their ability to build sustainable businesses, preferring companies with validated business models and metrics close to profitability.

A significant influx of capital into the fields of AI, fintech, and cybersecurity boosts confidence in the sector's continued development. At the same time, funds are paying increased attention to risk diversification and a measured approach to valuations. If the macroeconomic environment remains favorable, the market may accelerate its growth in the second half of the year. For this, a combination of local potential (talent and projects from various countries) together with access to global markets is essential.

Overall, the startup and venture investment news at the end of July 2025 reflects an increased interest in innovation combined with a pragmatic approach to investing. Venture funds and entrepreneurs demonstrate a willingness to collaborate: the former provide capital to promising projects, while the latter showcase real progress in developing technologies. The current situation allows for cautious optimism regarding the future, anticipating new technological breakthroughs and the continuation of the venture surge.