Current News in Startups and Venture Capital Investments as of December 21, 2025: The Return of Mega Funds, Record Rounds in AI, Revitalization of the IPO Market, Renaissance of Crypto Startups, and M&A Deals. A Review of Global Trends for Venture Investors and Funds.
By the end of 2025, the global venture capital market is showing a strong recovery after an extended downturn. Investors around the world are once again actively funding technology startups: multi-million dollar deals are being made, and IPO plans for promising companies are back in the spotlight. The largest venture funds and corporations are returning with record investment programs, while governments in various countries are enhancing support for innovative businesses. The influx of private capital is providing young companies with liquidity for growth and scaling.
Venture activity is sweeping across all regions of the world. The USA continues to lead, primarily due to colossal investments in artificial intelligence (AI). In the Middle East, the volume of investments in startups has doubled compared to the previous year. Europe is experiencing a shift in power dynamics: for example, Germany has surpassed the UK in venture deal volume, strengthening the presence of continental hubs. India, Southeast Asia, and other rapidly developing markets are attracting record capital amid investors’ relative selectivity in China (due to regulatory risks). Meanwhile, the startup ecosystems in Russia and the CIS countries are also striving not to lag behind, despite external restrictions. A new global venture boom is emerging: investors have returned to the market, although they remain selective and cautious in their deal-making.
- The return of mega funds and large investors. Leading venture players are forming unprecedentedly large funds and increasing investments, refilling the market with liquidity.
- Record funding rounds and a new wave of AI unicorns. Unprecedented investments are driving startup valuations to unseen heights, particularly in the AI segment.
- Revitalization of the IPO market. Successful public offerings by technology unicorns and new applications confirm that the "window of opportunity" for exits remains open.
- The renaissance of crypto startups. The rise of the cryptocurrency market has rekindled investor interest in blockchain projects, enhancing capital influx into the crypto industry.
- Defense and aerospace technologies are attracting capital. Geopolitical factors are driving investments in military technologies, space projects, and robotics.
- Diversification of industry focus: fintech, climate projects, and biotech. Venture capital is directed not only to AI but also to fintech, climate projects, and biotechnology, broadening market horizons.
- A wave of consolidation and M&A deals. High valuations of startups and intense competition for new markets are prompting a wave of consolidation: large M&A deals are opening additional opportunities for exits and scaling.
- Global expansion of venture capital. The investment boom extends beyond traditional hubs—beyond the US, Western Europe, and China, significant capital influx is observed in the Middle East, South Asia, Africa, and Latin America, forming new tech hubs.
- Local focus: Russia and the CIS. Despite sanctions, new funds are emerging in the region to develop local startup ecosystems, signaling a gradual recovery of venture activity.
The Return of Mega Funds and the Influx of Big Money
The largest investment players are triumphantly re-entering the venture arena, signaling a renewed appetite for risk. The Japanese conglomerate SoftBank has announced a new Vision Fund III (~$40 billion) for investments in advanced technologies (AI and robotics) and is simultaneously making an "all-in" bet on OpenAI, investing over $20 billion in the company. Sovereign wealth funds in Middle Eastern countries are also ramping up: they are pouring billions of dollars into tech projects and launching state megaprojects to develop the startup sector, creating their own tech hubs in the region. At the same time, new venture funds are appearing worldwide. US venture funds have amassed unprecedented reserves of "dry powder"—hundreds of billions of dollars in unused capital ready for deployment. The influx of "big money" fills the ecosystem with liquidity, providing resources for new rounds and supporting the growth of promising companies. The return of mega funds and large institutional investors not only intensifies competition for the best deals but also instills confidence in the industry regarding further capital influx.
Record Rounds and New Unicorns: The Investment Boom in AI
The AI sector remains the main driver of the venture upturn in 2025, setting new records for funding volume. Investors are eager to invest in AI leaders, directing enormous sums to the most promising companies. For example, Elon Musk's startup xAI raised approximately $10 billion, while OpenAI secured $8.3 billion at a valuation of around $300 billion. Both rounds were heavily oversubscribed, underscoring the excitement surrounding leading AI companies. Moreover, venture capital is flowing not only into AI applications but also into the infrastructure for them: one AI data storage startup is close to closing a multi-billion-dollar round at a very high valuation (investors are willing to finance even the "shovels and picks" for the entire AI ecosystem). Such an investment boom is giving rise to a wave of new unicorns, although experts warn of the dangers of overheating in this segment.
The IPO Market is Reviving: The "Window of Opportunity" for Listings Remains Open
The global IPO market has confidently revived after a prolonged lull and continues to pick up pace. In Asia, Hong Kong has initiated a new wave of listings: in recent weeks, several large tech companies have gone public, collectively raising billions, confirming investors' readiness in the region to actively participate in IPOs again. The situation is also improving in the US and Europe: the American fintech unicorn Chime recently debuted on the exchange, and its shares soared by 30% on the first day of trading. Following this, other well-known startups are preparing to enter the market, indicating that the "window" for new IPOs remains open longer than many had anticipated.
The revival of IPO activity covers a wide range of companies and is crucial for the venture ecosystem. Successful public exits allow venture funds to secure profitable exits and redirect the freed-up capital into new projects. Despite investor caution, the prolonged "window" encourages more and more startups to consider going public.
Crypto Startups Experience a Renaissance
After a prolonged downturn, the cryptocurrency market rebounded in 2025, reigniting venture investors' interest in blockchain projects. Capital is once again flowing into the crypto industry—from infrastructure solutions and cryptocurrency exchanges to DeFi platforms and Web3 startups. Major dedicated funds are resuming activity in this segment, and new crypto startups are attracting significant funding rounds amid rising valuations of digital assets.
Defense and Aerospace Technologies Attract Capital
The geopolitical landscape and rising defense budgets are stimulating investment inflows into military and aerospace technologies. Startups creating innovations for the defense sector—from drones and cybersecurity systems to AI for the military—are receiving support from both the government and large investors. Commercial space projects are also being actively funded: the development of satellite constellations, orbital services, and new rocket technologies. Furthermore, dual-purpose robotics (for military and civilian uses) is attracting heightened investor interest, reflecting the strategic importance of automation.
Diversification of Investments: Fintech, Climate, and Biotech on the Rise
In 2025, venture investments are spreading across an increasingly broad range of industries, rather than being solely concentrated on AI. Following last year's downturn, there is a noticeable revival in fintech: major rounds are taking place not only in the US but also in Europe and emerging markets, supporting the growth of promising financial projects. Simultaneously, investors are showing heightened interest in climate technologies, "green" energy, and agri-tech—these sectors are receiving record financing amidst the global trend of sustainable development.
Activity in biotech is also recovering: new drugs and medical platforms are once again attracting capital as the industry emerges from a period of declining valuations. This expansion in industry focus makes the startup ecosystem more resilient, reducing venture market dependence on any single dominant trend.
Consolidation and M&A Deals: Consolidation of Players
High valuations of companies and fierce competition for markets are pushing the startup ecosystem towards consolidation. Large mergers and acquisitions are coming to the forefront, reshaping the dynamics of the industry. For instance, Google recently agreed to acquire the Israeli cybersecurity startup Wiz for $32 billion. Such mega-deals indicate that even industry leaders are willing to spend tens of billions to keep pace in the technology race.
Overall, the current activity in acquisitions and large venture deals reflects the maturing of the industry. Mature startups are merging with one another or becoming targets for acquisitions by corporations, while venture funds finally have the opportunity for long-awaited profitable exits. Consolidation enhances the efficiency of the ecosystem, allowing companies to pool resources for accelerated growth and entry into the global market.
Global Expansion of Venture Capital
The venture boom of 2025 is characterized by an increasingly broad geographical scope. Beyond traditional centers—including the US, Western Europe, and China—significant capital inflow is being observed in the Middle East, South Asia, Africa, and Latin America. The Gulf region, for example, is rapidly transforming into a new tech hub thanks to multi-billion-dollar investments from Saudi Arabia and the UAE in startups. India and Southeast Asia are setting records for venture funding, and "unicorns" are emerging in countries in Africa and Latin America, fostering local ecosystems. Investors are increasingly seeking opportunities worldwide, contributing to the formation of a truly global startup market.
Russia and the CIS: Local Focus Amid Global Trends
Despite sanctions and other restrictions, there is a revival of startup activity in Russia and neighboring countries. New venture funds with volumes up to 10-12 billion rubles are emerging. Local startups are attracting capital again and even contemplating going public: for instance, a regional food tech startup received investments at a multi-billion valuation and is preparing for an IPO—a telling example of the seriousness of local initiatives.
Additionally, foreign investors are once again permitted to invest in Russian projects, gradually rekindling interest from overseas capital. Although the volume of venture investments in the region is still modest, it is steadily growing.
