Startup and Venture Investment News — Tuesday, July 29, 2025: The AI Investment Race, New Wave of IPOs, and Global Venture Capital Expansion

By the end of July 2025, the global startup ecosystem is showing signs of steady revival and growth following several years of decline. Investors are once again actively pouring capital into tech companies: record deals are being struck for fundraising, and startup plans for going public are back on the agenda. Major corporations have resumed bold venture investments, launching new funds and initiatives, while governments across various countries are increasing support for innovation, striving not to fall behind in the global technological race. Preliminary data indicates that global venture funding reached its highest level since early 2022 in the first half of 2025. In the second quarter of 2025, worldwide investments in startups totaled around $90–91 billion, representing an increase of approximately 10–12% compared to the previous year. Although still far from the peak levels of 2021, this current growth signals a return of private capital to the startup market and the formation of a new venture boom.

Venture deals now span all regions — from Silicon Valley and Europe to Asia, the Middle East, Africa, and Latin America. North America has seen a particularly notable uptick, accounting for up to 70% of all investments, a significant portion of which is directed towards the AI sector. Europe is witnessing a reshaping of its landscape: for instance, Germany has, for the first time in a decade, outpaced the UK in terms of venture investments, signaling growth in continental ecosystems. Meanwhile, the dynamics in Asia are uneven — funding for startups in China has dropped to multi-year lows, while India and Southeast Asia continue to attract substantial capital. Even localized markets, such as the CIS countries, are striving to catch a new wave of growth despite external constraints. The overall picture indicates a resumption of global venture capital boom, although market participants remain cautious and selective.

Below are key events and trends defining the current venture market agenda as of July 29, 2025:

• Ongoing IPO market revival. Successful initial public offerings (IPOs) and new applications from tech "unicorns" confirm that the long-awaited "window" for exits remains open.
• Record rounds of funding and new "unicorns." Unprecedented levels of investment are elevating startup valuations to multi-billion-dollar levels, particularly in the artificial intelligence sector.
• Return of major investors and mega funds. Leading players are launching large-scale venture funds and ramping up investments, refilling the market with capital and increasing risk appetite.
• Industry diversification of investments. Venture capital is flowing into not only AI but also fintech, climate projects, biotechnology, defense technologies, and even crypto startups, broadening market horizons.
• Consolidation and M&A deals. A wave of major mergers, acquisitions, and strategic investments is altering the industry landscape, creating new exit opportunities and allowing for company scaling.
• Global expansion of venture capital. The investment boom is reaching new markets — from the Persian Gulf and South Asia to Africa and Latin America — forming their own technological ecosystems.
• Local focus (Russia and CIS). Despite restrictions, new funds and initiatives are emerging in the region to develop startup ecosystems, attracting investor attention to the local market.

IPO Wave Gains Momentum: The Window for Exits Remains Open

The initial public offering (IPO) market has confidently revived and continues to gain momentum after a prolonged lull. In Asia, Hong Kong has initiated a new wave of IPOs: in recent weeks, several large technology companies have successfully gone public, collectively raising billions of dollars. For example, one of the leading battery manufacturers raised approximately $5 billion at listing, while several fintech and biotech companies executed IPOs at around $1–2 billion each. In the US and Europe, the situation is also improving: the recent debut of fintech "unicorn" Chime on the New York Stock Exchange saw stock rise more than 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 commenced its IPO roadshow, intending to raise nearly $1 billion at a valuation of about $16 billion. Numerous well-known startups (including payment service Stripe and social platform Reddit) are eyeing the public market in the second half of 2025 against a favorable backdrop.

Even companies from the crypto industry are going public. The crypto custody service BitGo has announced a confidential filing for a listing, reflecting a renewed interest from investors even in this recently depressed sector. Additionally, on emerging markets, high-profile listings are on the horizon: in India, the Middle East, and Latin America, several rapidly growing companies have announced plans to go public. The wave of successful IPOs worldwide confirms: the "window" for accessing public markets is once again open, and investors are ready to welcome new technology issuers.

Mega Rounds and New "Unicorns": Investments Hit Records

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

Just days ago, a new project founded by former OpenAI leaders secured 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. Meanwhile, new enormous transactions continue to be announced weekly, raising the valuations of promising companies to previously unseen heights. For instance, defense technology startup Anduril raised $2.5 billion in a Series G round, doubling its valuation to approximately $30 billion, while the company **Safe Superintelligence** (founded by OpenAI co-founder Ilya Sutskever) received around $2 billion in funding, reaffirming the excitement around safe AI projects.

Over the first six months of 2025, dozens of new "unicorns" — private companies with valuations exceeding $1 billion — have emerged globally. Some have rapidly ascended to "decacorn" status (valuations over $10 billion). Industry analysts estimate that nearly half of all venture funding in the second quarter was allocated to AI projects. However, the excitement is not limited to AI; the return of large sums of money to the market overall is driving valuation increases in other segments as well. The influx of capital and record rounds signal that investors are trying not to miss out on a new technological revolution, rekindling their faith in the potential of promising projects.

The Return of Mega Funds: Major Investors Refill the Market with Capital

The largest investment players are triumphantly returning to the venture scene, signaling a rise in risk appetite. Japanese conglomerate SoftBank is once again betting on large-scale investments: Masayoshi Son has officially announced the formation of the Vision Fund III, with a size of approximately $40–50 billion, focused on advanced technologies (primarily in AI and robotics). The largest sovereign wealth funds from the Persian Gulf have also become active — they are pouring billions of dollars into technology projects and launching state mega-programs to develop the startup sector, forming their own tech hubs in the Middle East.

Simultaneously, new venture funds are being established globally — both independent and corporate — which are attracting significant institutional capital for investment in high-tech industries. Renowned Silicon Valley firms are also increasing their presence: for instance, venture giant Andreessen Horowitz (a16z) is raising a record fund of around $20 billion to invest in late-stage American AI startups. According to industry research, US venture funds now hold record amounts of uninvested capital (over $300 billion of so-called "dry powder") ready for action as market confidence returns. Such flows of "big money" fill the ecosystem with liquidity, providing fuel for new rounds and supporting the growth of promising company 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 regarding future capital flows.

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

In 2025, venture investments are being distributed across an increasingly broad range of sectors, extending beyond artificial intelligence alone. Following last year's downturn, there is a noticeable revival in adjacent sectors — investors are once again focusing on finance, climate technologies, biomedical applications, defense developments, and other fields. Below are key areas currently experiencing a growth in venture investments:

• Fintech: major deals in financial technologies are returning worldwide. For example, New York-based alternative investment platform iCapital raised approximately $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 eagerly financing "green" technologies — from renewable energy and electric mobility to innovative nuclear energy. For instance, Swiss startup Climeworks secured over $160 million for developing direct CO₂ capture technology (the company’s total funding raised has exceeded $1 billion). In the field of nuclear fusion, European projects set new funding records (around €290 million in the first half of 2025), while US startup Commonwealth Fusion Systems attracted roughly $1 billion for further development.
• Biotech and Medtech: large rounds are taking place in biotechnology and medical startups. Platforms utilizing AI for drug discovery, genetic technologies, and other MedTech projects are once again securing substantial capital. For instance, biomedical company Altos Labs continues to attract hundreds of millions for research in lifespan extension, while Greek project Centivax received more than €130 million to develop a next-generation universal vaccine.
• Defense Technologies: investments in startups related to defense and security are rising amid geopolitical tensions. Projects in drone technology, cybersecurity, space systems, and related fields are receiving support from both government funds and private investors seeking to strengthen technological sovereignty. For example, the American company Anduril, specializing in defense solutions with elements of AI, has raised significant funds to scale its production and develop new products.
• Cryptocurrency 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 emerging, although investors are acting selectively — primarily financing infrastructure solutions and financial applications based on cryptocurrencies. The emergence of clearer regulations (for instance, a law regulating stablecoins was passed in the US this spring) has increased confidence among market participants. Against this backdrop, even large crypto companies are preparing to go public, which seemed unlikely just a year ago.

Consolidation and M&A Deals: Scaling Up Players

High company valuations and stiff market competition are pushing the startup ecosystem toward consolidation. Major mergers and acquisitions are once again taking center stage, providing investors with exit opportunities while granting companies access to new technologies and scales. Records are being set for exit sizes: for example, Google agreed to acquire the cybersecurity cloud startup Wiz for about $32 billion — an unprecedented amount for a company from a venture portfolio. In addition, a number of well-known startups worldwide are finding strategic buyers for nine- and ten-digit price tags. Consolidation is affecting various sectors from fintech (for instance, regional neobanks being acquired by major players) to enterprise software and artificial intelligence.

Among the notable recent examples is Grammarly's acquisition of email service Superhuman as part of a strategy to create an AI productivity platform, as well as the activity of major IT corporations purchasing promising developments. The overall trend indicates that both traditional tech giants and the unicorns themselves are increasingly becoming buyers of startups, striving to strengthen their positions. The wave of M&A deals is reshaping the industry landscape, providing startups with new exit pathways and enabling investors to realize profits. This trend indicates market maturity: successful projects either go public or get integrated into large companies, ultimately revitalizing the ecosystem and clearing space for new players.

Global Expansion of Venture Capital: New Markets and Regions

The 2025 venture boom is taking on a genuinely global scale, reaching markets that were recently on the periphery of the technological scene. The countries in the Persian Gulf (e.g., UAE, Saudi Arabia, and Qatar) are actively investing in startups and building their own infrastructure for technology development — from local accelerators to massive hedge funds focused on tech investments. In Southeast and South Asia, there is a surge in entrepreneurial activity: India, Indonesia, Vietnam, and other countries in the region are witnessing growth in late rounds and upcoming IPOs, reflecting the dynamics of their rapidly developing digital economies. Just in recent weeks, several Indian startups closed funding rounds in the tens and hundreds of millions of dollars, and a number of "unicorns" in the region have announced plans to go public.

Africa is also seeing an unprecedented influx of venture investments, accelerating the development of local startup ecosystems. From Nigerian fintech projects to Kenyan agri-tech startups, an increasing number of teams on the continent are attracting international capital. Likewise, Latin America is not lagging behind: in countries like Brazil, Mexico, and Chile, the number of venture deals is rising, and new unicorns are emerging 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, striving not to miss the next "diamond" of the global tech scene. As a result, founders from various countries now have unprecedented opportunities to attract capital, making the venture market increasingly international.

Russia and CIS: Local Focus Amid Global Trends

Active steps are being taken in Russia and neighboring countries to develop their own startup ecosystems in light of global trends. At the Petersburg International Economic Forum (SPIEF-2025), a new venture fund was announced, with participation from the state bank PSB, targeting a volume of around 12 billion rubles for investments in dual-use projects — from drones and artificial intelligence to robotics. PSB is a cornerstone investor in this fund, also attracting private capital; even amid sanctions, the market seeks opportunities to finance prioritized technologies and nurture its own unicorns.

Simultaneously, some regional startups are hitting new levels. For instance, the Krasnodar food tech project Qummy raised 440 million rubles at a valuation of approximately 2.4 billion rubles, preparing for an IPO — this case demonstrates the seriousness of technological business ambitions 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. Additionally, in July 2025, the President of Russia signed a decree effectively softening restrictions for foreign investors: they are once again allowed to acquire shares in Russian companies and freely withdraw capital from the country. This move aims to stimulate international investments in the economy and venture sector, despite geopolitical conditions.

It is noteworthy that émigrés from the CIS are already achieving global success, integrating into the world industry. For example, the AI startup Perplexity (founded by a Belarusian entrepreneur and based in the US) recently raised an additional funding round of approximately $100 million, bringing its valuation to about $18 billion. Another exemplary case is the Dubai project Xpanceo, established by a Russian and a Ukrainian: it secured about $250 million in a Series A round at a valuation of $1.3 billion to develop "smart" augmented reality contact lenses. These cases confirm that innovative projects rooted in CIS countries can compete on the cutting edge of the global technological arena.

Although the scale of the venture market in the region is still modest compared to the West, the foundation for future growth is being laid. Investors are shifting 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 are striving to enter global value chains, relying on strong competencies in high-tech niches (AI, big data, cybersecurity, etc.). Despite all the challenges, Russia and neighboring countries are gradually building their own venture landscape, hoping to secure a worthy place in the global technological race over time.

Conclusion: Measured Optimism

As we approach the second half of 2025, the sentiment among venture investors remains cautiously optimistic. Record deals and successful IPOs instill confidence that the recent downturn has been overcome, yet the lessons of past years keep the market from excessive euphoria. Investors are now paying much closer attention to the quality of startup growth and their ability to build sustainable businesses, favoring companies with proven business models and near-profitability metrics.

A significant influx of capital into AI, fintech, and cybersecurity sectors strengthens belief in the industry's continued development. At the same time, funds are placing heightened emphasis on risk diversification and balanced valuation approaches. In a favorable macroeconomic environment, the market could accelerate growth in the second half of the year. For this, a combination of local potential (talents and projects from various countries) with access to global markets is crucial. Overall, the news surrounding startups and venture investments at the end of July 2025 reflects a heightened interest in innovation coupled with a pragmatic investment approach. Venture funds and entrepreneurs are displaying a readiness to collaborate: the former are providing capital to promising projects, while the latter are demonstrating tangible progress in technology development. The current situation allows for cautious optimism regarding the future, anticipating the emergence of new technological breakthroughs and the continuation of the venture boom.