Startup and Venture Capital News — Sunday, August 3, 2025: New IPOs, Record Investments, and M&A Deals

As of early August 2025, the global venture capital market is showing a robust recovery after several years of decline. Investors worldwide are once again actively funding technology companies: record capital is being raised, and startup plans for IPOs are once more in the spotlight. Major funds and corporations have resumed large-scale venture investments, initiating the launch of new funds and programs; governments across various countries are increasing support for innovation, striving not to fall behind in the global technology race. Preliminary data shows that the first half of 2025 was the most productive in terms of venture funding since 2021. In North America alone, investment volume for the first half of the year grew by approximately 87% (to ~$116 billion) compared to last year, largely due to massive deals in the field of artificial intelligence. Overall, this positive trend indicates a return of private capital to the startup market and the beginning of a new wave of venture growth.

Venture deals now span all regions of the world—from Silicon Valley and Europe to Asia, the Middle East, Africa, and Latin America. Notably high activity is seen in the USA (which accounts for a lion's share of global investments, with significant allocations to the AI sector) and the Middle East (where investment in startups reached $2.1 billion in the first half of 2025, a 134% increase from the previous year). Europe is witnessing a reshaping of the landscape: Germany has surpassed the UK in venture investments for the first time in a decade, signaling a strengthening of continental ecosystems. In Asia, the dynamics are mixed: startup funding in China remains at reduced levels, while India, Southeast Asia, and the Gulf countries are attracting increasing capital. Even local markets (e.g., CIS countries) are attempting to catch the new wave of growth despite external constraints. The overall picture indicates a global renewal of the venture capital boom, although investors continue to approach deals selectively and thoughtfully.

Below are key events and trends shaping the current agenda of the venture market as of August 3, 2025:

• Continued revival of the IPO market. Successful IPOs of technological "unicorns" and new applications confirm that the long-awaited "window" for exits remains open.
• Record funding rounds and new "unicorns." Unprecedented investment amounts are pushing startup valuations to record levels, especially in the AI sector.
• The return of major investors and mega-funds. Leading players are launching record venture funds and ramping up investments, once again filling the market with capital and increasing risk appetite.
• Sectoral diversification. Investors are putting money not only into AI but also into fintech, climate projects, biotechnology, defense developments, and even crypto startups, broadening the horizons of the venture market.
• Consolidation and M&A deals. A wave of large mergers, acquisitions, and strategic investments is reshaping the industry landscape, opening new opportunities for exits and company consolidation.
• Global expansion of venture capital. The investment boom is reaching new markets—from the Gulf States and South Asia to Africa and Latin America—creating their own technological ecosystems.
• Local focus (Russia and the CIS). Despite limitations, new funds and initiatives for developing local startup ecosystems are drawing investor attention to the region.

The IPO Wave Gains Momentum: The "Window" for Going Public Remains Open

The global market for initial public offerings (IPOs) has confidently revived after a prolonged lull. In Asia, Hong Kong has initiated a new wave of IPOs: in recent weeks, a number of large tech companies have successfully gone public, collectively attracting billions. For example, Chinese battery manufacturer CATL raised about $5.2 billion, and pharmaceutical giant Hengrui, along with food conglomerate Haitian, each raised approximately $1.3 billion. These high-profile debuts demonstrated that regional investors are once again ready to actively invest in public offerings. Other heavyweights, such as chip developer Montage Technology, are also queueing for a listing in Hong Kong, aiming to raise up to $1 billion, reflecting a revival of IPO activity, at least in Asian markets.

In the USA and Europe, the situation is also markedly improving. American fintech "unicorn" Chime recently successfully debuted on the market, soaring more than 30% on its first trading day and becoming one of the largest fintech IPOs of the year. This success is inspiring others. The designer platform Figma has officially conducted its listing: its IPO was valued at around $1.5 billion (the company's revenue for 2024 was $749 million) with a market capitalization of about $15–20 billion. Figma's shares started trading on a positive note, confirming high investor demand for tech IPOs. A number of well-known startups (including payment service Stripe, social platform Reddit, and Indian e-commerce project Meesho) have already filed applications or are gearing up for an IPO, signaling that the IPO window remains open.

Mega Rounds and New Unicorns: Investments Break Records

The artificial intelligence sector remains the primary driver of the venture boom in 2025, setting new records in funding volume. Investors worldwide are eager to invest in AI leaders, directing colossal amounts into the most promising projects. Almost every week new mega-rounds are announced, reaffirming AI's status as the main "magnet" for venture capital. For instance, the startup Thinking Machines Lab (founded by former OpenAI director Mira Murati) raised around $2 billion in a seed round at a valuation of approximately $12 billion—a testament to investor appetite for this young project.

Elon Musk's xAI project announced the closure of a record funding round—about $5 billion in equity and another $5 billion in debt instruments, providing the startup with colossal resources for developing its AI platform and data center infrastructure. According to insider estimates, xAI's valuation now exceeds $100 billion, placing the company among the most valuable private firms in the world. Another ambitious player, the startup Safe Superintelligence (co-founded by Ilya Sutskever), raised about $2 billion at a valuation of over $30 billion to create safe AI systems. Furthermore, industry sources report that Anthropic is in final negotiations for a new round worth $3–5 billion, which could raise its valuation to a staggering $170 billion.

Additionally, according to media reports, industry leader OpenAI raised $8.3 billion in investment at a valuation of around $300 billion—much earlier than expected. This round, part of a plan to raise $40 billion in funding by the end of 2025, was five times oversubscribed, provoking discontent among some early investors due to the diminishment of their stakes, as the company prioritized new strategic partners. The latest round included both old and new investors, with Dragoneer contributing $2.8 billion (one of the largest amounts ever invested by a single venture fund), as well as giants like Blackstone and TPG. Such unprecedented funding underscores the immense market interest in leading AI companies.

These mega deals are generating a new wave of "unicorns" and even "decacorns" (private companies valued at over $10 billion), especially in the AI sector. Analysts estimate that in the second quarter of 2025, as much as 45% of all venture funding worldwide was directed toward AI projects. Investors are not only attracted to developers of foundational AI models and platforms but also specialized solutions—from medical analytics to business process management. The overarching "AI frenzy" continues to define the venture market agenda, ensuring an unprecedented influx of capital, though some experts caution about the risks of an overheated sector.

At the same time, investors are actively supporting other fast-growing segments, leading to the emergence of new unicorns beyond AI. Recent prominent deals include:

• Israeli startup Cato Networks (cloud cybersecurity) raised $359 million (valuation ~ $4.8 billion).
• US fintech startup Ramp (a service for managing corporate expenses) secured $500 million in investments (capitalization rose to about $22.5 billion).
• The Juniper Square platform (US, investment management software for private markets) attracted $130 million (valuation ~ $1.1 billion).
• Content creator service Substack (US) received $100 million (valuation ~ $1.1 billion).

Collectively, these and other recent deals have sharply increased valuations for many companies. In the first half of 2025 alone, several dozen new unicorns emerged, some of which quickly achieved "ultra-unicorn" status with valuations exceeding $5 billion. Record capital inflows into AI, fintech, biotech, and other innovative niches confirm a return of investor confidence in promising technologies.

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

The largest investment players are triumphantly returning to the venture scene, indicating a renewed appetite for risk. Japanese conglomerate SoftBank is once again placing bets on large-scale investments: Masayoshi Son announced the formation of the Vision Fund III, targeting approximately $40–50 billion focused on advanced technologies (with an emphasis on AI and robotics). Sovereign funds from Gulf countries have also ramped up activity: they are pouring billions of dollars into tech projects and launching government mega-programs to develop the startup sector, creating their own tech hubs in the Middle East. Simultaneously, new venture funds are being established worldwide—both independent and corporate—attracting significant institutional capital for investments in high technologies.

Notably, well-known firms from Silicon Valley are also increasing their presence. For example, venture giant Andreessen Horowitz (a16z) is raising a record new fund of around $20 billion, primarily focused on investments in late-stage American AI startups. According to industry research, funds in the USA now hold unprecedented reserves of uninvested capital—over $300 billion of "dry powder," ready for deployment as confidence in the market returns. Such powerful flows of "big money" are filling 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 for continued capital inflow.

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

In 2025, venture investments are being distributed across an increasingly broad range of industries, stepping beyond just artificial intelligence. Following last year's downturn, fintech has seen a notable revival: large rounds are happening not only in the USA but also in Europe, Asia, and emerging markets. Significantly, big deals in financial technologies are making a comeback—New York-based platform iCapital recently raised $820 million from a consortium of investors at a valuation exceeding $7.5 billion, signaling a renewed interest in the sector.

Simultaneously, a boom in "green" technologies is ongoing: funds are eagerly financing climate projects—from renewable energy and electric transport to innovative nuclear energy. For example, Swiss startup Climeworks secured $162 million to expand systems for capturing CO₂ directly from the atmosphere (raising total funds to over $1 billion). In the nuclear fusion sector, European companies set a new funding record (around €290 million for the first half of 2025), while American projects are leading in mega-rounds (Commonwealth Fusion Systems raised about $1 billion).

Biotechnology and medical startups are also attracting significant capital from venture funds. For instance, the American startup Centivax raised $45 million to create a universal flu vaccine. The cybersecurity segment remains a strong market driver (notable examples include the recent Cato Networks deal mentioned above). Crypto and Web3 startups are beginning to revitalize after a deep slump—in the second quarter of 2025, venture investments in blockchain projects surpassed $10 billion (the highest since 2022), indicating a gradual return of interest in this direction.

Consolidation and M&A Deals: Consolidation of Players

High valuations for companies and fierce competition for markets are driving the startup ecosystem toward consolidation. Major mergers and acquisitions are once again coming to the forefront, reshaping the power dynamics in the industry. In Southeast Asia, a potential mega-deal is being discussed: the market leader in ride-hailing and delivery, Grab, has resumed negotiations to merge with Indonesian tech holding GoTo. The merger of the two companies, with a combined capitalization of around $25 billion, would create a dominant platform in the region. The mere fact that dialogue has returned between Grab and GoTo reflects players' desire to optimize costs and strengthen positions through combined efforts.

In the US and Europe, tech giants are also ramping up acquisitions of promising projects. Google recently completed a record acquisition of cloud cybersecurity startup Wiz for $32 billion—this is the largest tech deal of the year, significantly strengthening Google's position in the cloud services market. Concurrently, Meta invested approximately $14 billion in startup Scale AI (a data labeling platform), acquiring about 49% of the company's shares at a valuation of around $28 billion. This strategic deal demonstrates the intent of major IT players to secure key AI competencies. Additionally, amid the demand for infrastructure for AI, American cloud provider CoreWeave announced the acquisition of mining company Core Scientific for $9 billion to repurpose its data centers (originally built for crypto mining) for AI needs.

Interest in defense and aerospace technologies is also leading to record deals. Europe is experiencing unprecedented growth in this segment: German startup Helsing raised around €600 million in a funding round led by the fund Prima Materia (the investment company co-founded by Spotify's Daniel Ek), bringing Helsing's valuation to about €12 billion. Thus, Helsing has become one of the highest-valued young companies in the defense sector. The wave of consolidation through mergers, acquisitions, and strategic alliances shows that both startups and corporations are seeking ways to scale and strengthen competitive positions in a rapidly changing market.

Global Expansion of Venture Capital: New Markets and Regions

The venture boom of 2025 is taking on a truly global scale, reaching markets that were recently on the periphery of the technology scene. Middle Eastern countries are demonstrating record activity: with the support of government initiatives, large funds and hubs for developing startups are being established, and an increasing number of regional projects are receiving funding. Gulf states are launching mega-projects to diversify their economies through technology, and local venture funds are emerging as leading investors both in the domestic market and abroad.

In Southeast Asia, new "unicorns" are emerging: tech companies in e-commerce, fintech, and logistics are achieving valuations over $1 billion against the backdrop of rapid digital economy growth and user base expansion. India and Indonesia are also experiencing a surge in venture activity: in recent weeks, several Indian and Indonesian startups have closed funding rounds in the tens and hundreds of millions of dollars, and a number of successfully growing companies have announced plans for IPOs. This geographical expansion of venture capital intensifies competition for the best projects: today, funds and business angels are tracking promising teams from Singapore and Dubai to Nairobi and São Paulo.

Africa is also witnessing an unprecedented influx of investments, leading to the rapid development of local startup ecosystems. From Nigerian fintech projects to Kenyan agrotech startups— more and more African teams are attracting international capital for scaling. Latin America is not lagging behind: in 2025, Mexico surpassed Brazil in the volume of venture investments for the first time, and startups in the region are actively raising funds in sectors such as fintech, e-commerce, and delivery. The emergence of new innovation centers in Mexico City, São Paulo, Dubai, Jakarta, and other cities is strengthening global competition for capital and talent.

Russia and the CIS: Local Focus Amid Global Trends

Despite external constraints, active steps are being taken in Russia and neighboring countries to develop their own startup ecosystems while keeping global trends in mind. At the St. Petersburg International Economic Forum (SPIEF-2025), a new venture fund from PSB Bank was announced in collaboration with partners—targeting a volume of around 12 billion rubles, the funds will support dual-use projects (drones, AI, robotics, and other high-tech areas). In addition to government institutions, private players are also beginning to show activity: for example, the venture firm Kama Flow launched a new fund of 10 billion rubles for investing in mature startups. Even under sanctions, the market is seeking opportunities to finance priority technologies and aims to cultivate its own successful "unicorns."

At the same time, some regional startups are reaching a new level. For instance, the Krasnodar food tech project Qummy raised 440 million rubles at a valuation of around 2.4 billion rubles, preparing for an IPO—this case demonstrates the seriousness of even local initiatives. Additionally, a state fund named Qazaqstan Venture Group, with a volume of $1 billion, was created in Kazakhstan to support AI startups. In July 2025, Russia also relaxed regulations for foreign investors: they were permitted to acquire shares in domestic companies and transfer funds without restrictions. These measures are aimed at reviving international investments and facilitating a tighter integration of the local venture capital market into global processes.

Although the scale of the venture market in the region remains relatively modest, the groundwork for future growth is gradually being laid. Investors are shifting their attention to more mature projects with proven business models, while the government is expanding support through the development of IT education, accelerators, and special tax regimes. Local startups are eager to enter global value chains, leveraging their strengths in modern technological areas (AI, Big Data, etc.).

Conclusion: Cautious Optimism and Quality Growth

As of early August 2025, sentiments in the venture industry remain cautiously optimistic. Successful IPOs and large funding rounds suggest that the bottom of the downturn has been surpassed; however, investors are still approaching investments selectively—preferring companies with sustainable business models and pathways to profitability. The substantial inflow of capital into the sectors of AI, fintech, and cybersecurity instills confidence in the continued development of the industry, but funds are placing increased emphasis on diversification and risk management. If the current momentum is maintained, the second half of 2025 may bring further growth in the number of deals and investment volumes; nevertheless, a key priority for the market will remain the quality of this growth and the long-term sustainability of startups.