Startup and Venture Investment News — Sunday, August 24, 2025: Mega Rounds in AI, M&A Wave, and Revival of IPOs
By the end of summer 2025, the global venture capital industry is confidently gaining momentum after a prolonged downturn in recent years. Investors worldwide are once again actively financing technology startups: record-breaking deals are being closed, and the IPO plans of promising companies are back in the spotlight. Major venture funds and corporate investors have resumed large-scale investments, while governments around the globe are intensifying support for innovative businesses, striving to keep pace in the global technology race. Private capital is once again flowing into startup ecosystems, providing young companies with the resources they need for growth.
According to analysts’ estimates, the first half of 2025 was the most successful period since 2021 in terms of total venture investments. In the US and Canada alone, startups attracted about $145 billion during this period (+43% compared to the same period last year) — a record over the past three years, primarily driven by a series of mega financing rounds in the artificial intelligence sector. Venture activity is rising almost everywhere: the Middle East is experiencing an investment boom (Gulf countries have invested approximately $2.1 billion in the first half of the year, +134% year-on-year), and Europe has seen a shift — Germany has surpassed the UK in investment volume for the first time in a decade, reflecting the strengthening of continental ecosystems. At the same time, China remains in decline (~–33% year on year), while India, Southeast Asia, and several other markets demonstrate robust growth, attracting record capital. Even local markets such as Russia and the CIS are trying to catch the new wave — despite external constraints.
- The return of mega funds and major investors. Leading players are forming record-breaking venture funds, increasing investments and once again saturating the market with capital, which intensifies risk appetite.
- Mega rounds in AI and a new wave of unicorns. Unprecedented investments are driving startup valuations to unheard-of heights, especially in the artificial intelligence segment.
- Revival of the IPO market. Successful tech company debuts and new filings confirm that the long-awaited "window" for exits has reopened.
- A wave of consolidation and M&A deals. Major mergers, acquisitions, and strategic investments are reshaping the industry landscape, creating new exit opportunities and accelerating growth for companies.
- Local focus: Russia and CIS. Despite limitations, new funds and initiatives are emerging in the region to develop local startup ecosystems, increasing investor interest in local projects.
The Return of Mega Funds: Big Money Back in the Market
The largest investment players are triumphantly returning to the venture arena, signaling a renewed appetite for risk. The Japanese conglomerate SoftBank has announced the launch of the Vision Fund III, approximately $40 billion in size, aimed at advanced technologies (with a focus on artificial intelligence and robotics) after a long hiatus. At the same time, sovereign funds from the Gulf countries have become more active: they are pouring billions into innovative projects and implementing mega programs to support the startup sector, creating their own tech hubs in the Middle East.
Silicon Valley's renowned investors are also stepping back into play. American funds have amassed unprecedented reserves of uninvested capital ("dry powder") — hundreds of billions of dollars ready to be deployed as confidence returns to the market. For example, Andreessen Horowitz is raising a new mega fund of approximately $20 billion, fully focused on investments in AI companies — one of the largest targeted funds in the industry. The influx of "big money" is once again filling the startup market with liquidity, providing resources for new rounds and supporting the growth of promising companies. The return of mega funds and major investors not only intensifies competition for the best deals but also instills confidence in market participants regarding the continued influx of capital.
Mega Rounds in AI and a New Wave of Unicorns: Investments Hit Records
The field of artificial intelligence remains the main driver of the current venture surge, demonstrating record levels of funding. Investors are directing colossal sums into the most promising AI projects, inflating startup valuations to unprecedented heights. For instance, the American company Databricks raised a Series K round, increasing its valuation by 61% — over $100 billion. Elon Musk's startup xAI has raised approximately $10 billion in total (including venture and debt financing) and achieved a valuation of around $100 billion, making it one of the most valuable AI companies in the world. Meanwhile, OpenAI secured a new tranche of about $8 billion at a valuation of approximately $300 billion — all these mega rounds were significantly oversubscribed, highlighting the frenzy surrounding industry leaders. Another indicator of this trend is the startup Anthropic (a competitor to OpenAI), which announced in August its intent to double its total funding target to $10 billion, showcasing investors’ readiness to support new leaders in the AI race.
Strong rounds continue to attract other contenders as well. For example, the Canadian AI startup Cohere secured $500 million in August at a valuation of about $6.8 billion, confirming its status as a "unicorn" and the market's interest in new players. According to estimates, hundreds of private AI companies are already valued at over $1 billion, with a significant portion of them established within just the last two years. Despite signs of overheating, investors are still exhibiting high appetite for AI projects.
The IPO Market Comes Alive: The "Window" for Exits is Open
The global primary public offering (IPO) market has noticeably revived after a long pause and is gaining momentum. In Asia, a new wave of debuts was initiated in Hong Kong, where several major tech companies (including the Chinese CATL, which raised approximately $5 billion) have successfully gone public in recent weeks. In the US, successful IPOs of startups have resumed after a long break: the fintech "unicorn" Chime had a successful debut this summer (with stock prices up 30% on the first day), followed by the design platform Figma which went public, raising approximately $1.2 billion at a valuation of around $15-20 billion; its stock also saw significant increases. In the second half of 2025, other well-known startups are preparing for listings, including the payment service Stripe and several leaders in AI and SaaS.
Even crypto startups are trying to take advantage of the opened "window": for example, fintech company Circle has successfully gone public, signaling a revival of interest from investors even in this risky sphere. The current IPO wave is critically important for the venture ecosystem: successful listings bring profitable exits to funds and free up capital for new projects, fueling further growth in the industry.
Consolidation and M&A: Scaling Up Players
Overinflated startup valuations and competition for markets are pushing the industry toward consolidation. Major mergers and acquisitions are once again coming to the forefront, reshaping the balance of power in the technology sector. For instance, Google has agreed to acquire the Israeli cybersecurity startup Wiz for about $32 billion — a record sum for the Israeli tech industry.
Such mega deals demonstrate large companies' desire to acquire key developments and talent, often preferring to buy an innovative project rather than develop similar technologies from scratch. The surge in M&A activity indicates market maturation: mature startups are merging with each other or becoming the focus of interest for giants, while venture investors have a chance for long-awaited profitable exits. The wave of M&A deals opens new avenues for capital exits, allowing funds to lock in profits and forming larger, more competitive players on the global stage.
Russia and the CIS: Local Initiatives Amid Global Trends
Despite external restrictions, Russia and neighboring countries are taking steps to develop their own startup ecosystems in line with global trends. At the St. Petersburg International Economic Forum (SPIEF-2025), a new venture fund was announced with the involvement of the state bank PSB — targeted at approximately 12 billion rubles for investments in dual-use projects (from drones and AI to robotics). PSB is acting as the anchor investor for the fund, also attracting private capital. Similarly, Kazakhstan has established a state venture fund worth $1 billion to support AI startups. Even under the pressing circumstances of sanctions, the region is seeking to find opportunities to finance priority technologies and foster its own unicorns.
In July 2025, the Russian authorities partially lifted restrictions for foreign investors — they are once again allowed to purchase shares of Russian companies and freely repatriate capital. This move is aimed at revitalizing the influx of international investment into the economy and the venture sector, despite the challenging geopolitical landscape.
Although the scale of the venture market in the CIS is still smaller than in the West, the groundwork for future growth is being laid now. Investors are focusing on more mature projects with proven business models, and the government is expanding support — from the development of IT education to creating a network of regional accelerators. This comprehensive approach is forming a foundation for the emergence of new technological leaders in the region in the coming years.
Conclusion: Cautious Optimism and Growth Quality Prioritization
By the beginning of autumn 2025, sentiment in the venture industry remains cautiously optimistic. Record deals and successful IPOs instill confidence that the bottom of the downturn has been passed, yet the experience of overheating in 2021 keeps investors from euphoria. Sustainable growth and project quality are taking center stage: capital is being directed towards companies with strong products and performance metrics. The market is entering a new phase of recovery, more mature and balanced — participants are striving to avoid past mistakes, focusing on the long-term development of startups rather than a race for quick valuations. This disciplined approach gives hope that the new cycle of growth in the venture market will be more robust and productive, both for investors and for the founders of innovative companies.
