Startup and Venture Capital News – Saturday, July 26, 2025: Venture Boom Gains Momentum, IPOs on the Rise, and New Funds Launching

July 26, 2025 continues the trends of aggressive growth in the startup and venture capital markets. Following a prolonged downturn in the previous period, the global venture market shows signs of a solid recovery. Investors worldwide are returning to fund innovative projects, particularly against the backdrop of excitement surrounding artificial intelligence (AI) and a revival in capital markets. In today's overview, we will examine key news and trends: from record investments in tech companies to the resurgence of IPOs and significant mergers and acquisitions. The analysis will also cover the situation in various regions and changes in the strategies of venture funds themselves.

The Global Venture Market is Reviving

Record Half-Year: Preliminary data indicates that the total volume of global venture investments in the first half of 2025 reached the highest level since 2022. In the second quarter of 2025, global startup investments soared to approximately $91 billion, an ~11% increase year-over-year. Although it remains far from the peak values of 2021, the current uptrend indicates that private capital is gradually returning to the tech sector. Over six months, a total of more than $200 billion was invested in startups, reflecting a new venture boom in the post-crisis period.

Inequality in Growth: Recovery is occurring unevenly across regions. The largest contributions to growth have been made by the United States and Canada, which account for about 70% of all venture investments this year. In Europe, the situation is more muted: investment volumes have stabilized after last year's spike, and Europe’s share of global venture financing has even declined (about 13% in the first half of the year compared to 19% a year earlier). The Asian market is still lagging – investments in Asian startups fell by about a third compared to the previous year, reaching a multi-year low. Nevertheless, several emerging markets are showing positive trends, which will be discussed further below. Overall, the global venture landscape is entering a phase of revival, although growth is largely concentrated in specific segments and countries.

North America: Dominance of AI Investments

The U.S. and Canada continue to lead the venture scene. Megarounds in the AI Sector have become the hallmark of 2025 and the main driver of growth. In the first six months, North American startups attracted approximately $140–150 billion in funding (an increase of over 40% from last year) – a record for the past three years. Out of this amount, around $90 billion was directed to AI-related projects. In the U.S., a series of large-scale deals in the AI sector have been announced:

• OpenAI raised approximately $40 billion – one of the biggest rounds in the industry's history, solidifying the company’s status as a leader in generative AI.
• Meta & Scale AI: the corporation Meta invested $14.3 billion in startup Scale AI, which focuses on AI infrastructure – this deal was the largest of the year among corporate investments.
• Thinking Machines Lab: the new venture by former OpenAI CTO Mira Murati received around $2 billion in seed funding (valuation ~$12 billion), setting a record for early-stage investments.
• Safe Superintelligence: the company co-founded by OpenAI's co-founder Ilya Sutskever raised $2 billion for safe AI research.
• Anduril Industries: the startup at the intersection of defense and AI technologies closed a Series G round at $2.5 billion, doubling its valuation to over $30 billion.

These record investments confirm investors' eagerness to seize new technological waves. Venture funds are ready to invest unprecedented amounts even in late stages if they see the potential for another “unicorn.” This has led to a genuine AI boom in North America: over a third of all deals are related to artificial intelligence. However, such a strong concentration of capital in one sector carries risks – the market is closely watching whether the high expectations for these companies will be met.

Asia: Decline in China and Selective Growth in Other Countries

The Asian venture market in 2025 is experiencing a heterogeneous period. The total volume of investments in startups in the region over the half-year was about $26 billion, roughly 33% less than a year ago. China has recorded a particularly sharp decline: in the second quarter, Chinese startups attracted only about $5 billion – the lowest quarterly figure in recent years. Causes include decreased activity from local investors and a shortage of successful exits (IPOs and M&As) amid stricter regulation in the tech sector.

Meanwhile, other parts of Asia are witnessing some positive signals. India has managed to maintain its venture financing volume at a stable level – large rounds are being secured by fintech and e-commerce projects. For example, the platform Jumbotail raised about $120 million for the development of online trading, while the startup Meesho is reportedly preparing for an IPO aimed at raising ~$500 million. Additionally, the Indian government launched a special fund of INR 5 billion (≈$58 million) to support space startups and another venture fund of INR 10 billion for new space technologies. Israel, categorized by analysts as part of the Asian market, marked growth: in the second quarter, the investment volume there reached two-year highs, largely due to significant rounds in cybersecurity (for instance, the Israeli company Cato Networks secured $359 million for the development of cloud AI security systems).

In Southeast Asia, the situation is mixed: late-stage funding has slightly revived after a lull, while early-stage volumes remain modest. Authorities in many Asian countries are actively getting involved in supporting innovation. Chinese state funds are investing in national AI companies (for example, the Zhipu AI project received approximately $140 million in government funding) in an attempt to counter the outflow of foreign capital. Overall, Asia is still lagging behind Western markets, but selective successes (India, Israel) and governmental initiatives offer hope for a gradual revival of venture activity in the region.

Europe: Stabilization and Leadership Changes

In Europe, venture investments in 2025 remain at a stable level, albeit without the previous explosive growth. In the second quarter, funding volumes for European startups almost unchanged compared to the first quarter, staying below the peaks of 2024. Against the backdrop of declining large late rounds, Europe’s share of global venture capital has shrunk. Nevertheless, the European market demonstrates stability and significant deals across various sectors. For instance, in the second quarter, one of the largest rounds was secured by the Turkish gaming company Dream Games – approximately $1.25 billion for mobile game development. Significant investments were also attracted by European projects in defense, quantum technologies, energy, robotics, fintech, and other industries, indicating widespread diversification.

Regional Shuffle: Within Europe, a symbolic leader change has occurred. For the first time in a decade, Germany has surpassed the United Kingdom in venture investment volume: German startups received more capital in the second quarter than their British counterparts. This reflects the strengthening of Berlin and other German hubs, as well as a slight decline in activity in the London tech scene. However, on a cumulative basis for the half-year, the UK still maintains a lead in Europe (over $8 billion attracted by UK companies compared to ~$4–5 billion in Germany), though the gap is narrowing.

Support and Exits: European governments are actively stepping up the development of the ecosystem. The European Commission has officially launched the Scaleup Europe program – a fund of approximately €10 billion to support rapidly growing tech companies, aimed at easing their scaling without the need to move to Silicon Valley. Regulators are also relaxing requirements and encouraging government procurement of innovations to retain startups in the region. Meanwhile, the M&A market in Europe is reviving: in the second quarter, there were 172 startup acquisition deals worth approximately $7.2 billion. This indicates that large corporations and funds are beginning to actively acquire European companies, providing investors with the long-awaited exits.

Emerging Markets: Successes in Mexico and the Middle East

Besides major regions, positive news is coming from some emerging markets. In Latin America, venture investments are on the rise: in the second quarter, total investment volume increased by 13% compared to the previous quarter (and by 16% year-over-year). An unexpected leader in the region has been Mexico, which for the first time since 2012 surpassed Brazil in capital raised. Mexican startups secured significant rounds in fintech and e-commerce: the digital bank Klar raised around $170 million, while the auto marketplace Kavak raised $127 million. These deals helped Mexico City take the lead in the region. For comparison, in Brazil, a large round of $120 million was secured by cleantech startup New Wave (technology for resource extraction), in Chile fintech Toku raised $48 million, while the Mexican e-commerce aggregator Merama raised $45 million.

Middle East and CIS: In the Middle East and North Africa, there continues to be an influx of funds into the tech sector, largely thanks to state funds. In Saudi Arabia, logistics service Ninja secured $250 million and received a valuation of around $1.5 billion, becoming a new "unicorn" in the region. In the UAE and Qatar, funds are being established for investments in fintech, artificial intelligence, and infrastructure projects. The venture market in the CIS is also reviving: local funds and corporations are beginning to invest more actively in their startups, and the state is launching targeted initiatives. For instance, in Russia, the creation of a specialized fund worth several billion rubles is being discussed with participation from the Center for Unmanned Systems to finance companies in the drone and AI sectors. All of this indicates that venture growth is gradually encompassing the world, including new growth points in emerging economies.

The IPO Market: Opportunity Window Opens Again

After a two-year lull, the IPO market is reviving, creating new exit opportunities for startups. The Number of IPOs has significantly increased: as of late July, nearly 200 IPOs have taken place in the U.S. stock market since the beginning of the year, up about 80% compared to the same period in 2024. Successful debuts from several tech companies in the first half of 2025 have encouraged entrepreneurs and investors. For example, stock market debuts of fintech giants, such as Circle (issuer of the USDC stablecoin) and neobank Chime, were phenomenally successful – their shares soared in price, showing high demand among public investors. These high-profile IPOs are indicators of a resurgence of interest in tech listings.

A New Wave of Applications: Against the backdrop of favorable conditions, several large startups are planning to go public in the coming quarters. Confidential IPO applications have already been submitted by the American urban transportation service Via, as well as several crypto companies – the Gemini exchange founded by the Winklevoss twins and the custodial service BitGo. Rumors suggest that the crypto exchange Kraken is also considering going public in light of the record growth of the crypto market. Among the tech "unicorns," well-known design software developer Figma is preparing for an IPO – the company is aiming for a valuation of around $15–16 billion during its share offering, which may occur this fall if its acquisition by Adobe is finalized. Additionally, the public market is seeing interest from hardware and chip companies: startup Ambiq Micro (U.S., specializing in energy-efficient microchips) has announced plans to raise ~$85 million through IPO. Even in emerging countries, planned exits are on the horizon: the Indian online retailer Meesho and several Israeli companies are eyeing the stock market. Analysts note that the opening of this "window of opportunity" may last if the success of the initial offerings continues and the macroeconomic environment remains stable.

M&A Activity: Record Acquisitions for Technology

Alongside the IPO resurgence, the mergers and acquisitions market in the tech sector is gaining traction. Large corporations, investment holdings, and funds are ready to pay record sums for promising startups, striving to acquire new technologies and talent. In the first half of 2025, the total volume of startup acquisitions exceeded $100 billion – a 155% increase compared to the previous year. The number of M&A deals also rose (over 900 deals in half a year), indicating a revival of "exits" through corporate sales. Here are some of the largest acquisitions of the year:

1. Google Acquires Wiz: technology giant Google announced the acquisition of cloud cybersecurity startup Wiz for $32 billion. This record amount makes it the largest startup acquisition in the industry's history and emphasizes the willingness to pay a premium for leading positions in cloud security.
2. OpenAI and Jony Ive's Project: OpenAI spent $6.5 billion to acquire startup Io Products, which is developing an AI device in collaboration with the legendary designer Jony Ive. This deal aims to enhance OpenAI's hardware capabilities and has become one of the largest in the field of artificial intelligence.
3. ServiceNow – Moveworks: American firm ServiceNow is acquiring the startup Moveworks (an AI platform for corporate automation) for approximately $2.85 billion to integrate its solutions and enhance its AI products.
4. Xero – Melio: New Zealand fintech giant Xero is acquiring American payment service Melio for about $2.5 billion. This deal allows Xero to expand its presence in the U.S. market and combine accounting and payment services for small businesses.

Apart from these mega-deals, nearly every week sees announcements of smaller strategic acquisitions, especially in AI and security sectors. For example, Amazon recently joined the race for AI technologies by acquiring startup Bee, which developed a wearable AI gadget (a smart bracelet that records and transcribes speech). There is also consolidation in fintech: large players prefer to acquire innovative fintech services rather than create them from scratch. The wave of acquisitions clearly shows that many venture investors are finally seeing “exit” opportunities as large companies buy startups at attractive valuations. The easing of antitrust regulation (especially in the U.S. with the arrival of the new administration) has further simplified the closure of such major deals. Ultimately, the revival of M&A provides confidence to investors that a successful startup can bring the long-awaited profit through a sale to a strategic buyer.

Venture Funds: Capital Concentration and New Strategies

Within the venture capital industry, notable changes are occurring against the backdrop of a market upturn. The largest funds are consolidating the lion's share of capital, while smaller players find it increasingly challenging to raise funds. By the end of the first half of the year, about a dozen top firms raised more than half of all new capital in venture funds. For example, the renowned Founders Fund reported closing new funds amounting to $4.6 billion – more than double what dozens of smaller funds cumulatively raised. Overall, according to surveys, the total fundraising volume in the industry has dropped by approximately a third compared to the previous year. Limited partners (LPs) have become more cautious about investing in the venture asset class following a series of weak results and delays in exits, so the average time required to raise a new fund has reached a record 15 months. Many new management teams are experiencing difficulties in sourcing funds, while market leaders easily close mega-funds.

Emergence of New Players: Despite the concentration of resources among established VC firms, the venture ecosystem is seeing new participants with unconventional strategies. Major corporations are creating corporate venture arms to invest in relevant technologies: for example, microchip manufacturer Analog Devices has launched the AD Ventures fund to invest in robotics, climate, and medtech startups, while Google, through its Gradient Ventures division, is forming a new $200 million fund focused only on AI projects. Sovereign funds are also becoming more active – Middle Eastern, Asian, and European governments are increasingly funding startups directly or through joint funds. Government initiatives (like the mentioned EU Scaleup Europe program or Indian funds for space) are also bringing additional capital into the industry. Thus, alongside the consolidation of venture funds, new money from unconventional sources – both corporate and governmental – is flowing into the system. This presents additional opportunities for startups to attract investment, although competition for quality projects among investors is increasing.

Prospects and Conclusions

The venture market enters the second half of 2025 with cautious optimism. On one hand, startups are demonstrating impressive achievements in technology (primarily in AI), and investors are again prepared to take risks for high potential returns. Many venture funds have built substantial capital reserves during the recent downturn and are now actively looking for investment opportunities. If the macroeconomic environment remains stable and interest rates do not rise sharply, high activity levels in the startup market are expected to persist. The opening of the IPO "window" and the revival of M&A deals are already restoring investors' confidence in the possibility of successful exits, which in turn stimulates new funding rounds. In the coming months, we are likely to see further acceleration in venture activity.

At the same time, experts warn of certain risks. A significant portion of the current growth is concentrated around a single sector – artificial intelligence – and a few dozen of the largest deals. Such an imbalance means that the market is still fragile: if enthusiasm for AI cools or several mega deals fail to meet expectations, overall sentiment could shift rapidly. For a fully sustainable upturn, it is essential that investments are more broadly distributed across sectors and stages. Fortunately, there are signs of a gradual revival in fintech, cybersecurity, climate technologies, and other segments – signaling a diversification of the venture boom. Investors are paying increasing attention to startups with strong fundamentals and clear paths to profitability. Overall, by mid-2025, the venture capital industry is moving toward a new growth cycle, combining lessons learned over the past years with emerging opportunities in the post-crisis era. If current trends continue, we can expect further advances in innovation and investment, bringing the market closer to new record heights.