Current Startup and Venture Capital News for Monday, November 17, 2025: The Return of Mega Funds, Record AI Rounds, IPO Market Recovery, a Wave of M&A, Revival of Crypto Startups, and New "Unicorns". A Comprehensive Overview for Venture Investors and Funds.
By mid-November 2025, the global venture capital market is confidently recovering from the downturn of recent years. According to industry analysis, total venture investments reached approximately $97 billion in the third quarter of 2025—nearly 40% more than the previous year, marking the best quarterly result since 2021. The "venture winter" of 2022–2023 is behind us, and the influx of private capital into technology startups is noticeably accelerating. Major funding rounds and the launch of new mega funds signal a return of risk appetite among investors, though they remain selective and cautious in their actions.
Venture activity is growing across all regions. The U.S. continues to lead (especially with robust funding for AI projects), while investment volumes in the Middle East have roughly doubled over the year, supported by sovereign funds. Europe is witnessing a notable upswing, with Germany surpassing the UK for the first time in terms of venture capital raised. In Asia, record capital flows are led by India and Southeast Asia, amidst a relative decline in activity in China. New tech hubs are emerging in Africa and Latin America, while the startup scenes in Russia and neighboring countries are striving not to lag despite external constraints. Overall, the global market is gaining strength, although investors remain selective, primarily focusing on the most promising and resilient projects.
- The Return of Mega Funds and Large Investors. Leading venture players are raising record capital and actively investing in startups, saturating the market with capital and reigniting risk appetite.
- Record AI Rounds and New Unicorns. Unprecedented mega funding rounds in the AI sector are driving startup valuations to new heights and spawning a wave of new "unicorns."
- Revival of the IPO Market. Successful IPOs by technology companies and new listing plans confirm that the long-awaited "window" for exits has reopened.
- Industry Diversification. Venture capital is flowing not only into AI but also into fintech, green technologies, biotech, defense developments, and other sectors—the investment focus is expanding.
- A Wave of Consolidation and M&A. Major mergers and acquisitions are reshaping the industry landscape, creating new opportunities for profitable exits and accelerated company growth.
- Renewed Interest in Crypto Startups. Following a prolonged crypto winter, blockchain projects are once again attracting substantial funding and attention from funds and corporations.
- Local Focus. New funds and initiatives are emerging in Russia and the CIS to support local startup ecosystems, attracting investor interest despite constraints.
Return of Mega Funds: Big Money Back in the Market
The largest investment funds and institutional players are confidently returning to the venture arena, signaling a new phase of risk appetite. Following the downturn in venture fundraising in 2022–2024, leading firms are renewing capital raising efforts and launching mega funds, demonstrating faith in the market's potential. For instance, the Japanese conglomerate SoftBank has announced the launch of a new Vision Fund III with a capacity of approximately $40 billion. In the U.S., Andreessen Horowitz is forming a record-sized fund (~$20 billion) focusing on late-stage AI startups.
Sovereign funds in the Middle East are also increasing their activity, pouring billions of dollars into high-tech projects and creating regional tech hubs. Simultaneously, dozens of new venture funds are emerging across all regions, attracting significant institutional capital for investments in technological companies. The return of such "mega structures" translates to more funding opportunities for startups, while intensifying competition among investors for top projects.
Record Investments in AI: A New Wave of Unicorns
The artificial intelligence sector remains the primary driver of the current venture boom, demonstrating record funding volumes. Estimates indicate that around half of all venture investments in 2025 are directed towards AI startups, with total global investments in AI potentially exceeding $200 billion by year-end—an unprecedented level for the industry. This excitement is linked to the promise of AI technologies to dramatically enhance efficiency across numerous spheres and to unlock multi-trillion-dollar markets—from industrial automation to personal digital assistants. Despite warnings about a potential market overheating, funds continue to increase their investments, fearing they will miss the next technological revolution.
This massive influx of capital is accompanied by a concentration of resources among industry leaders: the lion's share of investments is going to a handful of companies leading the AI race. For example, the French startup Mistral AI raised about $2 billion, while OpenAI simultaneously secured $13 billion—both of these mega rounds significantly boosted the companies' valuations. Such deals inflate startup valuations, but at the same time, concentrate resources on the most promising directions, creating a foundation for future breakthroughs.
In recent weeks, several companies have announced substantial funding rounds, reaffirming the return of "big checks" to the market. Notable examples include:
- Synthesia (UK) – raised $200 million at a valuation of ~$4 billion for developing an AI video generation platform (the round was led by GV from Alphabet).
- Armis (U.S.) – secured $435 million in a pre-IPO round at a valuation of $6.1 billion to expand its IoT device cybersecurity platform (major investors included Goldman Sachs and CapitalG).
- Cursor (U.S.) – raised approximately $2.3 billion in another funding round, elevating its valuation to ~$29 billion just five months after the previous round, underscoring the unprecedented excitement surrounding AI tools for developers.
Revival of the IPO Market and Exit Prospects
Against a backdrop of rising valuations and capital influx, technology companies are once again actively preparing to go public. Following almost two years of inactivity, a noticeable surge in IPOs has emerged as a key exit mechanism for venture funds. Several successful listings in 2025 have confirmed the reopening of the "window" for opportunities: for example, the American fintech unicorn Circle successfully conducted an IPO with a valuation of around $7 billion—this debut has restored investor confidence in the market's appetite for new technology issuers. Following this, a number of large private companies are eager to take advantage of the favorable conditions. Insider reports indicate that OpenAI, the creator of ChatGPT, is contemplating its own IPO in 2026 with a potential valuation of up to $1 trillion, which would mark an unprecedented case for the industry. Additionally, the blockchain company ConsenSys (developer of the MetaMask wallet) is preparing for a listing in 2026.
Improved market conditions and gradual clarity in regulations (e.g., the enactment of specific stablecoin laws and the anticipation of Bitcoin ETF approvals) instill confidence in startups: the public market has become a viable option for raising capital and exits for investors. The return of successful IPOs is crucial for the venture ecosystem: profitable exits allow funds to return investments and redirect freed-up capital to new projects, thus closing the investment cycle.
Industry Diversification: Broader Investment Horizon
In 2025, venture investments cover a much broader range of sectors and are no longer limited to artificial intelligence alone. Following last year's downturn, fintech is once again coming to life: major funding rounds are taking place not only in the U.S. but also in Europe and emerging markets, fueling the growth of new digital financial services. Simultaneously, amid a wave of sustainability, investors are actively funding climate and "green" projects. Space and defense technologies are gaining strength—funds are increasingly investing in aerospace startups, drone systems, and defense tech.
Thus, the investment focus is significantly expanding: in addition to AI innovations, venture capital is now flowing into fintech, environmental startups, biotech/medtech, security projects, and other sectors. This broad diversification makes the entire startup ecosystem more resilient and reduces the risk of overheating in specific segments. Notably, the healthcare sector emerged as the third largest in the world in terms of venture investments at the end of Q3 (approximately $15–16 billion). For instance, the American medtech startup Forward Health raised $225 million in its Series D round (among investors are SoftBank and Founders Fund), elevating its valuation above $1 billion and achieving unicorn status. Additionally, appetite for defense technologies is returning (a striking example is Anduril Industries in the U.S., which received $2.5 billion, doubling its valuation to ~$30 billion), while a partial restoration of trust in the cryptocurrency industry has enabled some blockchain projects to once again attract funding.
Wave of Consolidation and M&A Transactions
Inflated startup valuations and fierce competition in the market have led to a new wave of mergers and acquisitions. Tech giants are resuming activity, seeking to acquire key technologies and talent: for example, Google has agreed to acquire the Israeli cybersecurity startup Wiz for approximately $32 billion—a record sum for the Israeli tech industry. Such large-scale M&A activity demonstrates that the startup ecosystem has matured: established companies are either merging with one another or becoming acquisition targets for larger corporations, while venture investors are finally getting a chance for long-awaited profitable exits.
Consolidation is also affecting the venture sector itself. In October, the major investment bank Goldman Sachs announced the acquisition of the venture firm Industry Ventures for approximately $1 billion—one of the largest deals of the year within the VC market, reflecting traditional financial institutions' growing interest in tech assets. Additionally, there are signs of consolidation in the crypto industry as well: according to sources, payment giant Mastercard is close to acquiring a blockchain infrastructure startup (a provider of technology for stablecoins) for up to $2 billion. These moves confirm the desire of major players to secure their positions in promising niches and accelerate the market's reformation in favor of larger and more stable companies.
Renewed Interest in Crypto Startups
After a prolonged decline due to the "crypto winter," the blockchain startup market is noticeably reviving in the second half of 2025. In the fall, the industry attracted the highest funding volumes it has seen in recent years, largely thanks to clearer regulations: regulators are introducing understandable guidelines (e.g., stablecoin laws and the anticipated approval of Bitcoin ETFs), while major financial corporations are returning to the field of digital assets. As a result, the influx of venture capital into the crypto segment has sharply increased.
Significantly, one of the largest venture deals of the year outside of the AI sector was indeed a crypto startup: the American project Polymarket raised approximately $2 billion (at a valuation of around $9 billion) to develop a decentralized predictive markets platform. Infrastructure solutions for digital currencies are also beginning to receive support—recently, the startup Hercle (U.S.), which is developing a stablecoin issuance platform, secured around $60 million in funding. Overall, having shed speculative ballast, crypto startups are gradually restoring trust and regaining the attention of venture funds and corporations. The involvement of traditional financial players and more transparent regulations are setting the stage for further growth of investments in this segment.
Local Market: Russia and the CIS
Despite external constraints, the startup ecosystem in Russia and neighboring countries is also attempting to develop amid the global upturn. Over the past year, several new venture funds have emerged in the region (with a combined total of several billion rubles), and state institutions along with large corporations have launched technology support programs—new accelerators, specialized funds, and grant competitions for innovative projects have been established. While the volumes of venture investments in Russia and the CIS remain relatively modest by global standards, and significant barriers persist (high rates, sanctions, etc.), the most promising local startups continue to attract funding and grow, focusing on local market niches.
The formation of a local venture infrastructure is gradually laying the groundwork for the future—when external conditions improve and global investors can more actively return to the region. Notably, in 2025, some restrictions were lifted for foreign investors wishing to invest in local projects, gradually renewing foreign capital interest. Such local initiatives, despite geopolitical challenges, integrate Russian and neighboring markets into global trends and prepare them for participation in the new venture upswing.
Conclusion: Cautious Optimism
A moderately optimistic sentiment has emerged in the venture capital industry. On one hand, the rapid growth of startup valuations—especially in the AI sector—draws parallels to the dot-com boom era and serves as a reminder of the risks of market overheating. On the other hand, the current investment frenzy directs enormous resources and talent towards the development of new technologies, laying the foundation for future innovative breakthroughs.
By the end of 2025, it was apparent that the global startup market had come to life: record funding volumes are being reported, significant IPOs are on the horizon, and the largest funds have amassed unprecedented pools of capital for investments. At the same time, investors are acting more discerningly, primarily investing in the most promising projects with sustainable business models. The key question for the future is whether the high expectations surrounding the AI boom will be met and whether other sectors will become more attractive for capital. For now, the appetite for innovation remains high, and market participants look ahead with cautious enthusiasm, hoping for balanced growth in the venture ecosystem.
