Global Overview of Venture Investments and Startups as of October 22, 2025: Mega Rounds in AI, Growing Interest in Fintech, Climate, and Biotechnology Projects, Resurgence of Mega Funds, and Revitalization of the IPO Market.
By the end of October 2025, the global venture market demonstrates a confident recovery after the prolonged downturn of the previous years. Investors worldwide are once again actively financing technology startups — record-breaking deals are being struck, and companies' plans for initial public offerings (IPOs) are back in the spotlight. Major players have returned to the arena with large-scale investments, while governments in various countries are strengthening their support for innovation. As a result, private capital is flowing back into the startup ecosystem, providing resources for a new phase of growth. According to industry analysts, total venture investments worldwide grew by nearly 40% year-over-year in the third quarter of 2025—clearly highlighting the revival of risk appetite.
Increased venture activity is being observed across all regions. The U.S. continues to lead (especially in the AI segment), investments in startups in the Middle East have doubled compared to the previous year, and in Europe, Germany has surpassed the UK in terms of the number of venture deals for the first time. In Asia, there remains a relative decline in China amid regulatory uncertainty, while India, Southeast Asia, and the Persian Gulf countries are attracting record capital. Moreover, the investment boom is reaching new frontiers: amid global growth, tech hubs are forming in Africa and Latin America (for instance, Africa recently saw its largest investment of $100 million in the electric mobility sector). The startup ecosystems in Russia and the CIS countries are also striving to keep pace, despite external constraints. A global venture boom is taking shape in the early stages, although investors still tend to operate selectively and cautiously.
Below are key events and trends shaping the venture market agenda as of October 22, 2025:
- The return of mega funds and major investors. Leading venture funds are attracting unprecedented levels of capital and rapidly increasing investments, injecting liquidity into the market and enhancing risk appetite.
- Record rounds in AI and a new wave of "unicorns." Unprecedented investments are driving startup valuations to unseen heights, particularly in the artificial intelligence segment.
- Revitalization of the IPO market. Successful public offerings of tech companies and new listing applications confirm that a long-awaited "window" for exits is once again open.
- Investment boom in defense technologies. The geopolitical situation is stimulating increased interest in defense and security startups, which are now at the forefront of the venture agenda.
- Diversification of sector focus. Venture capital is being directed not only into AI but also into fintech, climate projects, biotechnology, defense developments, and even crypto startups.
- A wave of consolidation and M&A deals. New mergers, acquisitions, and strategic investments are reshaping the industry landscape, creating opportunities for exits and accelerated growth for companies.
- Local focus: Russia and the CIS. Despite limitations, new funds and initiatives are being launched in the region to support local startup ecosystems, attracting the attention of investors.
The Return of Mega Funds: Big Money Back in the Market
The biggest investment players are triumphantly returning to the venture scene, marking a new surge in risk appetite. For instance, American firm Andreessen Horowitz has announced the formation of a new mega fund worth approximately $20 billion to invest in promising AI startups, while the Japanese conglomerate SoftBank is launching Vision Fund III with a target size of around $40 billion, focused on advanced technologies. Sovereign funds from the Persian Gulf countries have also significantly increased their activity: they are investing billions of dollars in tech projects and initiating government mega-programs, forming their own tech hubs in the Middle East. Alongside this, dozens of new venture funds are being created worldwide, attracting substantial institutional capital for investments in high-tech sectors.
The return of such "big money" from esteemed Silicon Valley funds and global investors not only intensifies competition for the best deals but also instills confidence in the industry about the future influx of capital. The American venture sector has accumulated record reserves of uninvested capital ("dry powder") — hundreds of billions of dollars are ready to be deployed as new opportunities arise. Large funds are filling the market with liquidity, providing resources for substantial financing rounds and supporting the growth of promising companies' valuations.
Record Investments in AI and a New Wave of "Unicorns"
The artificial intelligence sector is emerging as the main driver of the current venture upturn, showcasing unprecedented volumes of funding. Investors around the world are eager to invest in leaders of the AI sector, directing colossal funds into the most promising projects. For example, Elon Musk's venture xAI has raised about $10 billion in total investments, while AI model developer OpenAI has secured funding of roughly $8-9 billion with the company's valuation around $300 billion. Rumors are circulating that one company developing AI infrastructure is negotiating a multi-billion round at an extraordinarily high valuation. This investment frenzy has birthed a slew of new "unicorns" — startups with valuations over $1 billion.
The powerful capital influx is rapidly inflating the valuations of young AI companies. Startups in the artificial intelligence sector are now achieving "unicorn" status at a record pace, especially in the segments of generative AI and supporting infrastructure. Although some experts warn of signs of overheating at early stages (when any project labeled as AI is assigned inflated multiples), the fear of missing out on the next technological revolution fuels further influx of capital. According to Financial Times estimates, the volume of venture investments in AI startups in 2025 will exceed $200 billion — almost half of the entire market. So far, investor appetite for AI projects remains high, and the artificial intelligence sector is experiencing an unprecedented boom.
IPO Market Revitalization: A Window of Opportunities for Exits
The global market for initial public offerings of startups is emerging from stagnation and gaining momentum. In recent months, several notable venture companies have successfully launched IPOs, receiving high valuations in the market. Investors are once again willing to buy shares of tech newcomers, evidenced by impressive debuts: for instance, software design developer Figma and fintech giant Circle went public with great success — their valuations soared multiple times in the early days of trading. Throughout 2025, the total number of technology IPOs has significantly increased compared to the previous year, with more than a dozen "unicorn" startups globally going public in the third quarter, totaling over $90 billion in market capitalization at the time of listing.
Venture investors perceive these signals as confirmation that the long-awaited "liquidity window" for exits has genuinely opened. Many companies that postponed IPO plans during the downturn of 2022-2023 are now resuming those plans and submitting applications to regulators. Among the anticipated large debuts are Swedish fintech unicorn Klarna, preparing for a placement at a valuation of about $14 billion, as well as several other technology "unicorns" in various regions. The success of new listings not only allows founders and funds to lock in profits but also restores confidence that the venture cycle can once again conclude with planned exits. The window of opportunity for investment exits is wide open once more, ensuring a flow of capital into the next generation of startups.
Defense Technology Boom: A New Priority in the Venture Market
Amid geopolitical tensions, the niche of defense and military technologies is rapidly growing. Venture investors are increasingly financing startups related to defense, security, and the aerospace sector. In Europe, since early 2022, investments in defense startups have risen dramatically: in the first months of 2025 alone, companies in this sector raised around €1.4 billion, significantly more than in previous periods. The heightened interest is fueled by government contracts and the search for innovative solutions for the military — ranging from unmanned drones to biotechnology sensors. American funds are also stepping up: new players targeting military technologies are emerging in the U.S., while some existing corporations (e.g., major defense contractors) are launching their own venture divisions to seek promising developments.
The rapid influx of capital into the defense-tech sector is forming a new priority in the venture market. Startups that were previously on the periphery of interests (military AI systems, robotics for the army, cybersecurity, etc.) are now coming to the forefront. Although some analysts warn that the frenzy surrounding defense technologies might peak, investors remain willing to actively invest in this sector, considering the high demand from government clients and the urgent relevance of the developments. The boom in defense startups illustrates how quickly venture capital adapts to new global challenges, redirecting focus toward areas promising significant growth in demand.
Diversified Investments: Beyond AI
In 2025, venture investments are covering an increasingly broader range of industries and are no longer solely concentrated on artificial intelligence. Following the slowdown of the previous year, financing is resuming in other segments of the tech market, making the current upturn more balanced. Funds are striving to diversify their portfolios, allocating capital to promising projects across various fields. Key areas attracting investors' interest include:
- Fintech: New financial technology services and digital banks continue to receive significant investments amid sustained demand for online services. Global investments in the fintech sector are once again measured in tens of billions of dollars, demonstrating the industry's "second wind" after the downturn of 2022-2023.
- Climate and "green" projects: Solutions in clean energy, emissions reduction, and eco-technologies receive support thanks to the prioritization of sustainable development (ESG). For example, a coalition of private venture firms led by Bill Gates' Breakthrough Energy Ventures established a new fund of around $300 million to finance climate startups and plans to make its first investments soon.
- Biotechnology, medicine, and health: Investments in drug development, genetic research, life-extension technologies, and medical devices remain high. Pharmaceutical giants and specialized funds actively invest in biomedical and healthtech startups, anticipating breakthrough products and the vast potential of the health market. For instance, Finnish smart ring developer Oura attracted about $900 million with an $11 billion valuation, showcasing investors' interest in health wearables.
- Cryptocurrencies and blockchain: After a downturn in interest in recent years, crypto startups are back on venture investors' radar. Stabilization in the digital asset market and progress in regulation have attracted attention to new projects in decentralized finance, blockchain infrastructure, and Web3.
Thus, venture capital is now directed into a wide array of industries — from finance and energy to medicine and crypto technologies. The strategy of expanding sector focus aims to mitigate the risks of overheating in individual segments (the same AI) and ensure more sustainable development for the entire startup ecosystem.
Consolidation and M&A Deals: Larger Players on the Scene
High valuations of startups and fierce competition for new markets are pushing the industry toward consolidation. A wave of major mergers and acquisitions is once again coming to the forefront, reshaping the balance of power in the tech sector. In the third quarter of 2025, numerous notable M&A deals occurred, including the acquisition of several "unicorns" by strategic investors. Both major corporations seeking to acquire promising developments and successful startups merging to strengthen their market position are playing a role in this consolidation.
Major tech companies are actively acquiring innovative startups to expand their product lines and outpace competitors. For example, AI market leaders are buying small AI companies to bolster their technologies; in fintech, banks and payment systems are acquiring young services to integrate new features; and in biotech, pharmaceutical giants are acquiring developers of promising drugs. This consolidation is reshaping the industry landscape, consolidating key players and allowing the most successful projects to scale more quickly under the wings of larger partners. For venture funds, the wave of M&A represents additional pathways for exits: strategic deals are increasingly emerging as an alternative to IPOs, bringing long-awaited profits to investors. Although the total volume of buyout deals may fluctuate quarterly, the trend toward business consolidation is evident — mergers and acquisitions have once again become an integral part of growth strategy in the tech sector.
Russia and the CIS: Local Initiatives Amid Global Trends
In Russia and neighboring countries, despite external limitations, there is also a noticeable revival in venture activity. According to industry research, venture investments in the Russian Federation nearly doubled in the first half of 2025 compared to the same period last year (although the initial figures remained modest), reaching about $78 million. However, the total number of deals has decreased, indicating a new trend: there’s more money available but fewer projects. In other words, investors are betting only on the strongest teams. The average round size has increased, and the requirements for startups have tightened: getting selected is now more challenging, but projects that manage to earn trust attract significantly larger capital.
New funds and programs aimed at supporting tech companies are being launched in the region. Government institutions and large corporations are increasingly participating in the development of the local startup scene: industry accelerators, regional venture funds (such as the Moscow AI development fund or corporate funds under state companies), and innovation clusters are being created. These initiatives aim to compensate for the outflow of foreign capital and integrate local projects into the flows of global trends. Despite sanctions barriers, the Russian and CIS ecosystems are trying to follow global trends — from artificial intelligence to new industrial technologies. Gradually, the local venture market is restoring confidence: investors are showing cautious interest in competitive startups within the country and are preparing to finance their growth.
Cautious Optimism and Sustainable Growth
By the end of autumn 2025, moderately optimistic sentiments have taken root within the venture industry. Successful IPOs and major deals signal that the downturn period is behind us, although investors still prefer to act selectively and focus on projects with sustainable business models. Large capital inflows into the fields of AI, fintech, defense technologies, and other sectors instill confidence in further growth; however, funds are increasingly scrutinizing risks, striving to avoid overheating in the market. The industry is entering a new phase of development with an emphasis on qualitative, balanced growth. Market participants harbor cautiously optimistic sentiments: there is an understanding that the upcoming wave of innovation can yield substantial results if a rational balance between ambitious investments and risk assessment discipline is maintained.
