Key News from Startups and Venture Investments as of September 7, 2025: Record AI Rounds, the Return of Mega Funds, IPO Market Revival, New Venture Alliances, and Activity in the CIS Market.
By early September 2025, the global venture capital market is experiencing a brief summer slowdown, yet it overall maintains an upward trend. After a tumultuous first half of the year—especially bolstered by the AI investment boom—funding volumes temporarily fell to their lowest levels since 2017 in August. However, investors remain optimistic heading into the fall season: the return of IPO activity and a series of mega funding rounds instill confidence. Major players around the globe continue to invest capital in tech companies, while governments are expanding support for innovations. As a result, private capital is gradually re-entering the startup ecosystem, despite a continued selective and cautious approach from investors.
Venture activity is rising across most regions. **The USA** continues to lead (especially in the AI sector), accounting for about two-thirds of global investments year-to-date. The **Middle East** exhibits rapid growth—venture funding in the region has nearly doubled this year, driven by large-scale projects in Gulf countries. In **Europe**, structural changes are evident: for the first time, Germany has surpassed the UK in total investment volume for the quarter, although Europe’s overall share of the global venture capital market has slightly decreased. **India, Southeast Asia, and Gulf countries** are attracting record amounts of capital against the backdrop of a relatively weakening activity in **China**, where the tech sector faces domestic constraints. The startup ecosystems in the **CIS** are also striving to keep up—despite external challenges, new funds and programs are being launched in the region to support innovative companies. Overall, a new wave of venture optimism is forming at a global level, even if it is accompanied by a more meticulous project vetting process and moderation in valuations.
Below are the key events and trends shaping the venture market agenda as of September 7, 2025:
- The return of mega funds and large investors. Leading venture players are raising record-sized funds and ramping up investments, saturating the market with capital and fueling risk appetite.
- Record rounds in AI and a new wave of unicorns. Unusually large deals are catapulting startup valuations to unprecedented heights, especially in the artificial intelligence sector.
- Revival of the IPO market. A series of successful placements and new applications confirm that the long-awaited "window" for startups to go public has reopened.
- Diversification of sector focus. Venture capital is actively being invested not only in AI but also in fintech, climate projects, biotechnology, defense developments, and even the crypto industry.
- A wave of consolidation and M&A deals. Major mergers, acquisitions, and strategic alliances are reshaping the industry landscape, creating new opportunities for exits and growth.
- New alliances of investors. Venture funds are forming partnerships and coalitions to co-invest in priority technology sectors.
- Local focus: Russia and CIS countries. New funds and initiatives are emerging in the region to develop local startup ecosystems, attracting investor attention even amidst restrictions.
The Return of Mega Funds: Big Money Back on the Market
The largest investment players are re-entering the venture arena, signaling a resurgence of risk appetite. Major funds are announcing unprecedented capital pools aimed at tech projects. For example, the Japanese conglomerate SoftBank is launching a new Vision Fund III with about $40 billion allocated for investments in advanced areas (artificial intelligence, robotics, etc.). Following suit, the renowned Silicon Valley firm Andreessen Horowitz (a16z) is targeting a mega fund of around $20 billion to capitalize on global interest in American AI startups. Sovereign funds in the **Middle East** have also ramped up their activity, pouring billions of dollars into national tech parks and startup programs, positioning the region as a hub for venture capital.
Simultaneously, dozens of new venture funds are being established worldwide, attracting considerable institutional capital. Esteemed investment firms from Silicon Valley have increased their presence: during the period of uncertainty, they amassed vast reserves of uninvested capital—hundreds of billions of dollars—ready to deploy as convincing opportunities arise. This influx of "big money" infuses the startup market with liquidity, allowing new funding rounds to close and supporting the growth of promising companies’ valuations. The return of mega funds and large institutional investors heightens competition for the best deals while simultaneously reinforcing industry confidence in a long-term capital influx.
Record AI Rounds and a New Wave of Unicorns
The artificial intelligence sector remains the main driver of the venture market in 2025, showcasing record-size deals. Investors are keen to secure their positions among the AI race, directing colossal sums into the most promising projects. Just in recent weeks, several AI companies have attracted unprecedented funding. For instance, the American startup Anthropic, which is developing generative AI, secured about $13 billion in investments at a valuation of $183 billion—making it one of the most valuable private companies globally. Another example is Sierra, a San Francisco-based company that develops an AI platform for customer experience, which raised $350 million at a valuation of $10 billion just two years after its inception.
These mega rounds are driving startup valuations to uncharted heights and spawning a new wave of unicorns. Not only in the USA—companies with valuations exceeding $1 billion are emerging worldwide thanks to generous funding rounds. Significant deals are also occurring in biotechnology and medtech: for example, American Treeline Biosciences has raised approximately $1.1 billion for its cancer therapy developments, while Canadian Enveda Biosciences secured $150 million in a round that cemented its status as a unicorn. Despite the risk of overheating, investor appetite for innovative startups remains undiminished for now. However, experts note a rise in the share of "down rounds" (funding rounds with lowered valuations)—nearly 16% of deals in 2025 are occurring with decreased valuations, marking the highest level in a decade. This indicates a return to caution and a focus on sustainable growth: only the most compelling AI projects continue to attract funding at record valuations, while secondary players must contend with discounts. Nonetheless, the overall trend indicates a willingness for capital to keep flowing—in exchange for real technological advancements.
The IPO Market Revives: The Window for Exits is Open
After a prolonged pause, the market for initial public offerings is showing signs of life once again. Successful IPOs from several high-tech companies confirm that the "window" for startups to go public has opened, and investors are eager to buy shares from new issuers. At the beginning of September, five venture-capital-backed firms announced the start of their IPO roadshows. Among them is Swedish fintech giant Klarna, which is aiming for a valuation of up to $14 billion upon its share placement in the US, and the American blockchain company Figure, which is targeting a market capitalization of around $4 billion. The plans for IPOs have also been revealed by the cryptocurrency exchange Gemini (estimated value of $2.2 billion), American infrastructure service provider Legence (approximately $3 billion), and coffee shop chain Black Rock Coffee Bar (looking to raise up to $265 million).
This wave of IPOs indicates that companies from a wide array of sectors—from fintech and cryptocurrencies to industrial services and retail—are ready to go public, taking advantage of the improved market conditions. Investors are responding positively to new placements: shares of certain debutants have risen significantly in price during their first trading days, encouraging other contenders to expedite their IPO preparations. It is anticipated that other well-known startups will also go public in the latter half of 2025, providing venture funds with the long-awaited exits. Revitalizing the IPO market is crucial for the venture ecosystem: successful public exits allow investors to realize profits, return capital to Limited Partners, and reallocate funds toward new projects. Therefore, the revival of IPOs creates an environment for the gradual unloading of the overcrowded late-stage market and opens a new chapter of growth for promising companies.
Diversification of Investments: Not Just AI
Venture flows in 2025 encompass an increasingly broader range of sectors. After a period of singular focus on AI, investors are actively seeking opportunities in other segments, recognizing the importance of a balanced approach. Capital is being distributed among diverse sectors, each generating its own success stories:
- Fintech: Financial technologies remain among the largest recipients of investment. Major fintech startups are attracting nine- and ten-figure rounds, with some, such as Klarna, preparing for IPOs, signaling sector maturity.
- Climate and environmental projects: The theme of sustainability is gaining traction. A group of top investors recently joined forces to create a new fund, “Allied Climate Tech,” with approximately $300 million aimed at supporting late-stage climate tech initiatives. Governments and corporations are also investing in startups focused on renewable energy, carbon capture, and waste recycling.
- Biotechnology and health: Despite a downturn in 2022-2024, biotech is re-engaging the attention of VCs. Investors are eagerly financing developments in oncology, genetics, and pharmatech. Record rounds, like those seen with Treeline Biosciences, demonstrate the readiness to invest significant resources into promising drugs and platforms, particularly when they integrate AI to expedite research.
- Defense and space developments: The geopolitical climate is driving demand for security and space technologies. In Europe, one of the largest rounds of the year was the $694 million investment in Munich-based AI startup Helsing, which caters to the defense sector. In the USA and Israel, companies creating drones, cybersecurity solutions, and satellite constellations continue to grow, and venture funds are supporting their expansion.
- Cryptocurrency industry: Despite the volatility in the digital asset market, venture investments are not avoiding blockchain startups. Infrastructure projects for crypto finance, Web3, and DeFi are attracting funding rounds, albeit more modestly than in peak years. Additionally, the IPO of players like Gemini signifies that this sector is also eager to integrate into traditional capital markets.
As a result, the venture landscape is becoming multifaceted. Investors are diversifying their portfolios, not limiting themselves to a single trendy theme. This approach mitigates risks and allows them not to miss new “growth points”—be it a breakthrough in life sciences, a disruptive fintech model, or an innovation in climate tech. The venture industry itself is learning to balance hype with real value, redistributing capital across various sectors of the economy.
Market Consolidation: M&A Deals and Strategic Alliances
In addition to investments in new projects, 2025 has also been marked by a wave of mergers and acquisitions in the tech sector. Large companies and late-stage startups are actively acquiring promising assets, leading to market consolidation. Such M&A deals have become an alternative exit route for many investors and have enabled numerous startup entrepreneurs to see their long-awaited exits even amidst a challenging IPO market.
In recent months, several notable deals have taken place. For instance, the large corporate player Atlassian (Australia/USA) acquired the startup Browser Co. for around $610 million, which develops an innovative AI-based browser—this purchase solidifies Atlassian's position in the domain of online work tools. In the cryptocurrency sector, the American exchange Coinbase finalized an agreement to acquire the Dutch exchange Deribit, gaining access to its international client base. In Europe, billion-dollar sales were observed: 4 out of 18 venture companies sold globally for over $1 billion in the second quarter were European startups (including the quantum developer Oxford Ionics, purchased by American IonQ).
Consolidation is also affecting young companies—many startups prefer to merge with competitors or sell themselves to strategic investors to collectively reach profitability and scale faster. Simultaneously, unusual partnerships are emerging: large venture funds sometimes coordinate efforts for joint "rescue" investments in struggling companies, preventing their collapse and preserving invested capital. Consequently, the wave of M&A and strategic alliances is reshaping the industry landscape: stronger players are consolidating, while weaker ones seek partners, and investors gain more opportunities to recover funds. For the venture market, consolidation has become a natural response to past overheating—it helps clear the field of excess players and concentrate resources where they will lead to the most effective growth.
New Venture Alliances: Investors Join Forces
Another hallmark of the time has been the emergence of formalized alliances among venture investors. Typically, funds compete against each other for deals; however, now some are willing to collaborate to jointly develop priority sectors. In early September, an announcement was made regarding the formation of the India Deep Tech Investment Alliance—a coalition of eight American and Indian VC and PE firms (including Accel, Blume Ventures, Celesta Capital, and Premji Invest), collectively committing to invest over $1 billion in deep tech startups in India over the next decade. This unprecedented move is driven by strategic interests: the alliance aims to strengthen technology cooperation between the USA and India and address the shortage of long-term capital in the Indian deep tech sector.
The emergence of such alliances reflects the maturity of the venture market and a desire to collaboratively address common challenges. Investors recognize that some issues—whether climate change, AI infrastructure, or national technological independence—require consolidated resources. By forming consortiums, funds can share the risks of large projects, exchange expertise, and jointly lobby for innovation interests with the government. Besides the Indian example, there are also international initiatives in climate technologies, where dozens of funds worldwide coordinate investments for maximum effect. This cooperation sets a new operational format for the venture community, where competition merges with partnership in pursuit of large-scale goals.
Local Focus: Russia and CIS Countries are Not Left Behind
Despite geopolitical constraints, the Russian and Eastern European venture markets strive to develop in parallel with global trends. In 2025, new funds and programs aimed at supporting local startups and attracting capital have emerged in the region. This summer, a fund called Nova VC was launched in Russia with a volume of 10 billion rubles, focused on investments in IT startups—making it one of the largest private venture funds in the country in recent years. In Tatarstan, with the involvement of the “Perspective” fund and regional investors, a specialized venture fund called “New Chemical Industry” was established with a capital of up to 6 billion rubles, aimed at developing local chemical technology projects and import substitution in this area.
State institutions are also seeking ways to stimulate innovation. At the recent Eastern Economic Forum-2025, representatives of Sberbank emphasized the need to create a separate law on venture investments in Russia—a comprehensive legal framework that would facilitate investments in breakthrough technologies and protect investor rights. Authorities have expressed readiness to increase funding for research and development: by 2030, R&D spending is planned to reach 2% of GDP, which is double the current level. These steps indicate an understanding of the importance of venture capital for the country's technological sovereignty.
Meanwhile, startups from CIS countries continue to break into the international arena. Several companies with roots in the region recently attracted overseas investments. For instance, the Estonian voice training service Vocal Image, founded by émigrés from Belarus, received $3.6 million from a French venture fund—an example of how promising projects can find support abroad even in challenging conditions. At forums and pitch sessions (such as the “Innovation Territory” at the EEF, the Russian Venture Forum in Kazan, etc.), regional startups present their developments to investors, competing for attention and funding.
In conclusion, while the venture ecosystem in Russia and the CIS may lag behind the scales of leaders like Silicon Valley or China, it is creating its own infrastructure and success stories. Local funds, governmental initiatives, and relationships with friendly foreign partners help the region's startups develop in a challenging environment. For venture investors and funds, this is a signal: interesting opportunities exist not only on the global stage but also in local markets, which are poised for growth with the right support.
