Detailed Overview of Startup and Venture Investment News as of August 17, 2025: New "Unicorns," Record Rounds in AI, Resurgence of IPOs, Wave of M&A Deals, and Global Growth of the Venture Market. Insights for Investors and Funds.
By mid-August 2025, the global venture capital market is steadily emerging from the prolonged slump of previous years. Investors worldwide are actively funding technology startups again—deals are being struck at record amounts, and IPO plans for promising companies are once again taking center stage. Major funds and corporations are resuming significant investments, launching new venture programs, while governments in various countries are ramping up support for innovative businesses. Preliminary estimates suggest that the first half of 2025 has been the most successful since 2021: startups in the US and Canada alone raised about $145 billion (+43% compared to the same period last year), largely due to a series of mega-rounds in artificial intelligence. Private capital is gradually returning to the startup ecosystem, providing startups with the liquidity needed for growth.
Venture activity is now encompassing all regions. The US remains a leader (especially driven by investments in AI startups), while the volume of startup funding in the Middle East has doubled. Europe has seen a shift: Germany has surpassed the UK in terms of venture capital investments for the first time in a decade, underscoring the strengthening of continental ecosystems. The situation in Asia is uneven: while China continues to experience a decline in investment, India, Israel, Southeast Asia, and the Gulf countries are demonstrating growth and attracting record capital. Even local markets (CIS countries) are trying to catch the new wave of growth despite external constraints. A new global venture boom is forming at an early stage, although investors are still acting selectively and cautiously.
Below are the key events and trends defining the venture market agenda as of August 17, 2025:
- Return of Megafunds and Large Investors. Leading players are forming record venture funds and increasing their investments, again saturating the market with capital and enhancing the appetite for risk.
- Record Rounds in AI and New "Unicorns." Unprecedented investments are driving startup valuations to unseen heights, particularly in the artificial intelligence segment.
- Resurgence of the IPO Market. Successful debuts of technology companies on the stock market and new applications confirm that the long-awaited "window" for exits has reopened.
- Diversification of Sector Focus. Venture capital is flowing not only into AI but also into fintech, climate projects, biotechnology, defense technologies, and even crypto startups, expanding market horizons.
- Wave of Consolidation: Growth in M&A Deals. Major mergers, acquisitions, and strategic investments are reshaping the industry landscape, creating new opportunities for exits and accelerated company growth.
- Global Expansion of Venture Capital. The investment boom is spreading to new regions—ranging from Gulf countries and South Asia to Africa and Latin America—where their own tech hubs are forming.
- Local Focus: Russia and the CIS. Despite constraints, new funds and initiatives are emerging in the region to develop local startup ecosystems, increasing investor interest in local projects.
Return of Megafunds: Big Money Back in the Market
The largest investment players are triumphantly returning to the venture arena, signaling a renewed appetite for risk. Japan's SoftBank, having weathered the downturn, has launched Vision Fund III with approximately $40 billion, focusing on advanced technologies (with a primary focus on artificial intelligence and robotics). At the same time, sovereign funds from Gulf countries have become active, pouring billions into innovative projects and developing national mega-programs for the startup sector, thereby creating their own tech hubs in the Middle East. Moreover, dozens of new venture funds (including corporate ones) are emerging globally, attracting significant institutional capital into high-tech sectors.
Renowned Silicon Valley firms are also increasing their presence. In the US venture sector, funds have amassed unprecedented reserves of uninvested capital ("dry powder")—hundreds of billions of dollars ready to be deployed as market confidence returns. The influx of "big money" is providing liquidity to the startup market, supplying resources for new rounds and supporting the growth of promising companies. The return of megafunds and large institutional investors not only intensifies competition for the best deals but also instills confidence in the industry about a continued influx of capital.
Record Investments in AI and a New Wave of "Unicorns"
The artificial intelligence sector remains the main driver of the current venture upswing, demonstrating record financing volumes. New mega-rounds of investment are announced almost every week. For example, Canadian AI startup Cohere secured approximately $500 million at a valuation of around $6.8 billion. Additionally, OpenAI raised approximately $8.3 billion in a massive funding round, elevating its valuation to a staggering $300 billion. In light of such deals, a new generation of "unicorns"—young companies valued over $1 billion—is emerging. Europe, India, and the Middle East are also producing their own "unicorns" with the support of local funds, reflecting the global nature of the AI boom.
Revival of the IPO Market: The Window for Exits is Open
After a prolonged pause, the IPO market is experiencing a resurgence. Successful IPOs of major technology startups signal that the "window" for venture investors’ exits has reopened. In July, the high-profile debut of Figma on the stock exchange saw its shares soar more than three times the initial offering price, becoming one of the most impressive tech deals in recent years. This success has restored faith in the prospect of public exits for other "unicorns" that have long awaited the right moment to go public.
In the first half of 2025, over 150 companies went public worldwide. Among the recent successful listings are fintech giant Chime, cryptocurrency company Circle, and even defense and space project Voyager Space—all of which made a strong debut on the public market, with their stock prices significantly increasing on the first day of trading, confirming strong investor demand for new tech issuers. Additionally, several notable startups have already filed for IPO in the second half of the year, hoping to capitalize on the favorable market conditions. For example, crypto custodian BitGo announced its intention to go public, illustrating the readiness of players from the digital assets sphere to seize the revival of the IPO market. The year 2025 stands a chance of becoming a pivotal moment for the resurgence of activity in the IPO market.
Diversification of Venture Capital Sector Focus
Despite the dominance of AI, venture investors are actively exploring other areas, diversifying their portfolios. The fintech sector is experiencing a surge: in addition to successful IPOs of neobanks, startups in payment processing and corporate finance are also receiving significant funding rounds. Interest in climate technologies is growing—investors are pouring money into decarbonization projects, renewable energy, and new materials for the "green" economy. Biotechnology companies are also returning to the radar of venture funds, with substantial resources allocated to developments in healthcare and pharmaceuticals.
The defense technology sector has also become active. Rising geopolitical tensions are driving investments in startups focused on unmanned systems, cybersecurity, and military communications. The cryptocurrency industry is gradually rehabilitating too: following a relative stabilization of the cryptocurrency market, investors are once again showing interest in blockchain projects. The successful IPO of Circle, for instance, has bolstered confidence in the prospects of infrastructural crypto startups. The venture market of 2025 is acquiring an increasingly broader scope, extending beyond a single sector and opening new growth avenues—from finance and energy to medicine and defense.
Wave of Consolidation and Growth in M&A Deals
Simultaneously with the investment resurgence, activity in the mergers and acquisitions market is rising. Major tech companies and highly valued startups have entered a race to acquire promising projects, opting for acquisitions over developing technologies from scratch. In the AI sector alone, several major deals have been announced this year: OpenAI acquired two startups—AI device maker Io (deal valued at ~$6.5 billion) and the AI developer platform Windsurf (~$3 billion). Nvidia is strengthening its position by acquiring specialized AI firms (e.g., CentML and Gretel) to broaden its neural network capabilities. Even social networks are making significant bets: Meta Corporation made a record strategic investment in data processing company Scale AI, buying a stake for approximately $14.3 billion in order to gain access to key AI technologies.
Consolidation is also sweeping through other segments. In fintech, Ripple announced the acquisition of the platform Hidden Road, specializing in servicing institutional investors in the cryptocurrency market—this move will allow Ripple to enter the brokerage services market. In the defense sector, California-based startup Anduril acquired the Irish firm Klas, which creates secure communication networks for military purposes, thus enhancing its portfolio of security technologies. The wave of M&A deals not only provides venture funds with much-anticipated exits but also reshapes the industry landscape, consolidating players and accelerating the adoption of new technologies.
Global Expansion: Venture Boom in All Regions
In 2025, the geography of venture capital is rapidly expanding. Beyond traditional hubs like the US and China, the investment boom is extending to new markets. In the Middle East, Gulf countries are directing record funds into startups through sovereign funds, forming tech hubs in the UAE and Saudi Arabia. In South Asia, Indian and Southeast Asian ecosystems are thriving: here, venture investments are breaking records, attracting considerable foreign capital. Africa is also making its mark: the success of several Nigerian and Kenyan projects is drawing the attention of global investors.
In Europe, the positions of continental players are strengthening. Germany, France, and Northern European countries are increasing their venture investments, while growth in the UK has slowed post-Brexit. Latin America is experiencing a "second wind"—significant funding rounds are noticeable in Brazil and Mexico, especially in fintech. Thus, venture capital in 2025 is becoming a truly global phenomenon, extending beyond Silicon Valley and penetrating every corner of the world.
Local Market: Russia, CIS, and New Projects
Despite external restrictions, the venture market in Russia and neighboring countries continues to develop. New funds and corporate accelerators are being established in the region with participation from banks and major companies. Development institutions, such as the Skolkovo fund, are offering grants, tax incentives, and co-investment programs, compensating for the reduction in Western capital. Experienced tech entrepreneurs are also getting involved in venture initiatives: for instance, Igor Babushkin, co-founder of startup xAI (who worked with Elon Musk), has announced the establishment of his own fund to develop safe AI, returning from a global project to venture investment. Local investors and funds are increasingly focused on the domestic market and partners from friendly countries in the Middle East and Asia, filling the niche left by departed international players.
Local startups are beginning to attract serious capital. For example, Russian AI solution developer Metamentor raised 108 million rubles in seed funding at a valuation of about 432 million rubles, while the Krasnodar-based foodtech project Qummy previously secured around 440 million rubles at a valuation of approximately 2.4 billion rubles. Additionally, Russia has again allowed foreign investors to invest in local projects, gradually rekindling interest from overseas capital. New state support measures and corporate initiatives aim to provide additional momentum to the local startup ecosystem and integrate it into global trends.
