Startup and Venture Capital News, Sunday, July 27, 2025: AI Records, Crypto Boom, and Revival of IPOs

The end of July 2025 brings positive news for the global startup ecosystem and the venture capital market. The artificial intelligence sector is experiencing unprecedented investment volumes, the cryptocurrency market is hitting record highs, and the window for IPOs of tech companies is reopening after an extended pause. Venture capitalists around the world are demonstrating an increased appetite for risk, marked by the emergence of new "unicorns," a rise in mergers and acquisitions, and the launch of new investment funds.

AI Startup Investment Boom

Investments in startups focusing on the development of artificial intelligence (AI) are breaking historical records. In the first half of 2025, global investments in the AI sector saw a significant increase compared to the previous year. Major funding rounds are predominantly centered in the United States: for instance, in June, Meta invested $14.3 billion in Californian startup Scale AI, marking the largest deal of the quarter. Following this, a series of mega-rounds continued with AI companies across various fields, with several projects attracting investments of over $1 billion each. Notably, startup Thinking Machines Lab, led by Mira Murati, raised $2 billion—a record sum for such an early stage. Meanwhile, defense project Anduril Industries secured $2.5 billion to scale its security technologies.

Investors are competing for opportunities to invest in promising AI platforms, ranging from corporate sector tools to military and scientific applications. Notably, activity is not confined to North America; European and Asian AI startups are also experiencing heightened demand. In Europe, the young startup Lovable became a unicorn only eight months after its founding, raising $200 million in Series A at a valuation of $1.8 billion, making it one of the fastest unicorns. As a result of this surge in capital, the share of the AI sector in the total venture investments reached a record level.

The Cryptocurrency Boom and Growth of Blockchain Startups

The cryptocurrency market is witnessing a new upswing in 2025. The total capitalization of the crypto sector has exceeded $4 trillion, and the market leader Bitcoin has reached a new historical high, surpassing $120,000. This wave of optimism is supported by positive shifts in regulation: the recent passage of legislation regarding stablecoins and other crypto-assets in the U.S. has bolstered investor confidence in the industry's prospects.

Against the backdrop of market growth, interest from venture capitalists in blockchain startups is reviving. In the second quarter of 2025, venture investments in crypto startups surpassed $10 billion (with over $5 billion occurring in June alone—the record month since early 2022). Major investors are also becoming active: for example, crypto holding The Ether Machine plans to go public on Nasdaq through a merger with a SPAC, aiming to raise $1.6 billion backed by Ethereum. This example illustrates the drive of traditional capital to gain access to digital assets.

The Return of the IPO Market

Following a lull in 2022-2024, the market for initial public offerings (IPOs) of tech companies is beginning to revive. In the first half of 2025, several high-profile startup debuts on the stock exchange have inspired the venture market. These include fintech company Circle, operator of the USDC stablecoin, and online bank Chime; their successful IPOs are significant signals that investors are once again ready to purchase shares of growing tech businesses. These listings are proving successful, demonstrating positive market evaluations of the business models of new companies and opening much-anticipated exit opportunities for early investors.

By the end of the year, new listings are expected, as several unicorns are already preparing to test the waters, noting the favorable market conditions. The revival of IPO activity indicates an influx of fresh capital into the tech sector and the opportunity for venture funds to recoup their investments, enhancing the flow of funds within the startup ecosystem.

A Wave of Mergers and Acquisitions (M&A)

Large corporations have resumed their active hunt for promising startups, igniting a wave of mergers and acquisitions (M&A) in the tech sector. In the first six months of 2025, the global volume of startup acquisitions exceeded $100 billion, showing a growth of more than 155% compared to the same period last year. Corporate giants are willing to pay unprecedented sums for innovations in key areas—particularly in cybersecurity and AI infrastructure.

For instance, Google has announced plans to acquire Israeli cloud startup Wiz for a record $32 billion. OpenAI made a notable acquisition by purchasing the startup of legendary designer Jony Ive for $6.5 billion. The surge in M&A activity is providing startups with additional exit opportunities and signaling that large enterprises are eager to integrate cutting-edge developments created by startups into their products and services.

New Unicorns and Major Funding Rounds

Since 2025, the venture market has once again generated numerous unicorns—private companies valued at over $1 billion. Investors are once again willing to support promising projects with substantial sums at early and growth stages. As a result, startups around the world are announcing large funding rounds, sharply increasing their valuations.

A striking example is the European startup Lovable, which raised $200 million in Series A at a valuation of $1.8 billion, becoming one of the fastest unicorns. In the U.S., Vanta, which creates cybersecurity automation solutions, secured $150 million in Series D funding, increasing the company's valuation to $4 billion. Major funding rounds are also taking place in various sectors—from gaming to manufacturing—confirming the broad revival of venture activity in numerous fields. Such deals not only expand the global "unicorn club" but also provide companies with the resources for accelerated growth in international markets.

Regional Trends in Venture Investing

The development of startups and venture investments varies significantly across regions. North America maintains its leadership in funding volumes, while Asia is experiencing a relative decline in activity. Europe is showing moderate results, and Latin America is demonstrating local growth thanks to specific markets. Here’s a brief overview:

• North America: Dominates the global venture capital market. In the U.S. and Canada, startups raised approximately $145 billion in the first half of 2025, a 43% increase from the previous year. About $90 billion of these funds were invested in AI projects, securing North America approximately 70% of global venture capital.
• Europe: Investment volumes in the second quarter of 2025 in Europe remained at the level of the first quarter and were 24% lower than last year. Late-stage investments have declined, and Europe’s share of global venture investments has dropped to 13%. Nevertheless, a series of large deals occurred (the Turkish gaming startup Dream Games raised a record $1.25 billion), and Germany emerged as the leader in venture investments in Europe, surpassing the UK.
• Asia: The total volume of investments in startups in the region in the first half of 2025 amounted to approximately $26 billion—one-third less than the previous year. The downturn is particularly pronounced in China (about $5 billion per quarter due to a lack of exits). However, investments in India remained stable, and Israel recorded a two-year high in venture activity in the second quarter.
• Latin America: Demonstrated growth largely driven by Mexico. In the second quarter, the volume of venture investments in the region increased by 13% compared to the previous quarter (and by 16% year-over-year). For the first time since 2012, Mexico surpassed Brazil in venture funding, thanks to several significant rounds for local startups (for example, the Mexican neobank Klar raised $170 million, and the used car platform Kavak secured $127 million).

Thus, the geography of startup investments in 2025 is quite diverse: the primary growth is concentrated in the U.S., while Asia is experiencing a decline, Europe is maintaining moderate positions, and Latin America is advancing on its field via specific "growth points."

Investor Optimism and New Venture Funds

The venture industry is once again experiencing cautious optimism. Experienced funds are returning to active investment and leading the largest rounds (among the leading investors in recent months are Andreessen Horowitz, Accel, and others). Strategic investors, including corporations, are also joining in: companies like NVIDIA and Goldman Sachs are investing in promising startups to keep pace with technological trends.

One sign of revival is the emergence of new venture funds. Major players are launching funds worth hundreds of millions of dollars, while specialized funds focused on specific niches are also appearing. For example, the German company Auxxo raised €26 million for its Female Catalyst Fund II (with support from the European Investment Fund) to invest in startups with female founders. The emergence of such niche initiatives reflects the venture community's desire to find new growth points.

Despite a more stringent selection of projects and increased attention to the sustainability of business models, investor trust in the market is returning. Successful IPOs, the activation of M&A activity, record rounds, and a fresh influx of capital are creating conditions for a new growth phase within the startup ecosystem. The venture market is gradually emerging from the downturn of recent years and entering a recovery phase, allowing for optimistic prospects for technological innovations.