Global Overview of Startups and Venture Investments as of November 4, 2025: Major AI Deals, IPO Resurgence, Growth of Venture Funds, and the Emergence of New Tech Hubs
As of early November 2025, the global venture capital market continues its confident recovery following an extended downturn. Investors worldwide are once again actively financing tech startups—record deals are being closed, and IPO plans are back in the spotlight. Major players are returning with significant investments, governments are enhancing support for innovation, and private capital is once again flowing into the startup ecosystem.
Venture activity is on the rise across all regions. North America remains the leader (especially in artificial intelligence, which accounts for the lion's share of investments), but other parts of the world are gaining momentum. The Middle East has seen a significant surge in investments, with its own tech hubs emerging with the support of sovereign funds. The European market shows resilience: Germany has, for the first time, surpassed the UK in terms of deal volume, with early-stage funding particularly strong. Asia presents a mixed picture: China is showing signs of recovery after a weak period, although its activity still lags behind peak levels of 2021-2022; meanwhile, India and Southeast Asia are attracting substantial capital amid relative decline in China. The startup ecosystems in Russia and neighboring CIS countries are also striving to keep pace, despite external constraints. A global venture upswing is forming at a new stage of development, although investors remain selective and cautious.
Below are key events and trends shaping the venture market landscape as of November 4, 2025:
- Capital Inflow and the Return of Mega Deals. Leading venture funds are raising record amounts, and major investors are actively reinvesting, saturating the market with capital and reigniting the appetite for risk.
- Dominance of AI Investments and New Unicorns. Unprecedentedly large funding rounds are driving startup valuations to new heights, particularly in the artificial intelligence segment, giving rise to a new wave of unicorns.
- Resurgence of the IPO Market. Successful public listings of tech companies confirm that the long-awaited “window” for exits has reopened, allowing investors to anticipate liquidity.
- Diversification of Sector Focus. Venture capital is directed not only into AI but also into fintech, climate and green projects, biotechnology, defense developments, and even reviving crypto startups.
- Consolidation Through M&A Deals. A new wave of mergers, acquisitions, and strategic investments is reshaping the industry landscape, creating opportunities for exits and accelerated growth among the most robust players.
- Global Hubs and Regional Growth. The Middle East, Southeast Asia, Latin America, and other regions are strengthening their positions on the global venture map, attracting record capital against a backdrop of slowdown in China.
- Russia and the CIS: Local Initiatives. Despite constraints, new funds and startup support programs are being launched in the region, aimed at stimulating the development of local ecosystems and attracting investor interest.
The Return of Mega Funds: Big Money Back in the Market
The largest investment players are triumphantly returning to the venture arena, signaling a renewed appetite for risk. Japanese SoftBank, for instance, is forming a new Vision Fund III with around $40 billion focused on cutting-edge technologies (primarily AI and robotics). Sovereign funds from the Gulf states have also become more active: they are pouring billions into tech projects and launching state megaprograms to support the startup sector, creating their own "silicon valleys" in the Middle East. Meanwhile, numerous new venture funds are emerging worldwide, attracting significant institutional capital for investments in high-tech industries.
Renowned Silicon Valley venture firms are also expanding their presence. American funds have accumulated unprecedented reserves of uninvested capital (so-called "dry powder")—hundreds of billions of dollars ready to be deployed in new projects. This influx of liquidity into the startup market creates conditions for the emergence of mega deals. Multi-million and even billion-dollar funding rounds are becoming a regular occurrence, significantly increasing valuations of promising companies and intensifying competition among investors for the opportunity to enter top projects.
Record Investments in AI: A New Wave of Unicorns
The artificial intelligence sector is the principal driving force behind the current venture upswing, demonstrating record funding volumes. Investors are eagerly financing AI startups with massive amounts, boosting their valuations to unprecedented levels. In the last quarter alone, several companies working on generative AI and foundational models attracted rounds worth billions of dollars: these include California's Anthropic (approximately $13 billion), Elon Musk's xAI (~$5.3 billion), French Mistral AI ($2 billion), and several others. Consequently, nearly half of all venture investments currently flow into the AI sector, with a small group of AI companies capturing the lion's share of all raised capital.
As they raise capital on such a scale, AI startups are rapidly joining the unicorn club, boasting valuations exceeding $1 billion. The global list of private unicorn companies has gained dozens of new AI players in just a few months, significantly increasing their total value. Major tech corporations are also getting involved, investing in AI infrastructure: a notable example is Microsoft's investment of $9.7 billion in the Australian startup IREN, which focuses on cloud computing power for AI tasks. This arms race in AI attracts more investors eager not to miss the next breakthrough and fuels the sense that we are witnessing a historic surge in interest in artificial intelligence.
IPO Market Awakens: A Window of Opportunity for Exits
The global market for initial public offerings (IPOs) is emerging from its slumber and gaining momentum again. After several years of virtually closed "windows" for exits, venture investors finally have the opportunity to lock in profits: a wave of major tech IPOs indicates a return of confidence in public markets. In recent months, several unicorns have successfully debuted on stock exchanges with valuations exceeding $1 billion. One of the most anticipated was the listing of Swedish fintech giant Klarna on the New York Stock Exchange, with a valuation of around $15 billion—significantly higher than its last private valuation in 2022 (approximately $6.7 billion), although still below its peak valuation in 2021.
In the United States, a significant event was the IPO of software developer Figma, which attracted investor attention after its acquisition deal was canceled. The American cybersecurity company Netskope also had a successful listing, along with several Asian firms (including the automotive manufacturer Chery Automobile in Hong Kong). In total, more than a dozen venture companies with unicorn valuations went public on global securities markets in the third quarter, and this trend continued into the fall. Companies are rushing to seize the favorable moment: a rising stock market and steady demand for tech issuers create a "window of opportunity" for new IPOs. If macroeconomic conditions remain stable, experts expect an increase in the number of companies going public at the end of 2025 and into 2026.
Diversification of Investments: Not Just AI
In 2025, venture investments are covering an increasingly broad range of industries and are no longer limited to artificial intelligence alone. After last year's downturn, interest in fintech projects is reviving: significant investments are flowing into startups focused on digital finance, banking, and payments. For instance, in the US, the payment platform SavvyMoney raised $225 million, while in Europe, neobanks and "buy now, pay later" services are experiencing significant growth. There is also a powerful surge in climate and environmental technologies: "green" startups in renewable energy, waste management, and emission reduction are attracting substantial rounds of funding amidst a global emphasis on ESG and sustainable development.
The appetite for biotechnology is returning as well. Startups in medical technology and pharmaceuticals (ranging from new treatment methods to genetic research) are once again appealing to investors, as evidenced by the growth of industry funding—that is, in the last quarter, healthcare and biotech attracted nearly $16 billion worldwide. Amid geopolitical shifts, there is marked attention to defense and aerospace developments: funds are supporting companies creating drones, satellites, cybersecurity systems, and other "dual-use" products. Even the crypto industry, which has faced a downturn, is experiencing a resurgence—certain crypto startups and blockchain platforms are once again beginning to attract capital as the digital asset market stabilizes. Thus, venture capital is now being distributed far more widely, encompassing a variety of sectors of the economy.
Consolidation and M&A Deals: Scaling Up Players
Elevated startup valuations and intense competition for markets are driving the industry towards consolidation. Major mergers and acquisitions are once again taking center stage, consolidating key players and reshaping the tech sector landscape. After a relatively quiet period in previous years, corporate giants and unicorns with solid reserves of funds have become active in acquiring promising projects to strengthen their positions and gain access to new technologies.
In the third quarter of 2025, the volume of global M&A deals involving venture companies reached one of the highest levels in recent years. Nine startups were acquired for over $1 billion each. Among the most notable examples is OpenAI's acquisition of California-based AI startup Statsig to enhance its developments, and Workday's acquisition of the German AI platform Sana Labs. In Europe, several "exits" via sales have been recorded: significant M&A deals occurred in fintech, cybersecurity, and medtech (such as the Israeli AI company Noma Security attracting a strategic investor, and Swedish Sana being acquired in an international deal). Furthermore, in the crypto industry, the American exchange Coinbase is negotiating to acquire the London-based fintech startup BVNK for approximately $2 billion—this move aims to consolidate the stablecoin market. This wave of mergers provides investors with much-needed liquidity and allows the most successful players to scale their businesses, although the overall number of independent startups is decreasing.
Regional Growth: New Venture Hubs
Venture activity is becoming increasingly global—new regional innovation hubs are emerging. The Middle East has transformed into one of the fastest-growing venture markets: Gulf countries, which used to primarily invest abroad, are now actively developing their own ecosystems. Technology parks and funds to support local startups are being launched in the United Arab Emirates and Saudi Arabia, already leading to several record deals. For instance, in Dubai, the startup Xpanceo raised $250 million for the development of "smart" contact lenses, while the Saudi fintech project Hala received $157 million for the expansion of its payment platform—sums that were previously unprecedented for the region.
The Asian venture market is also showing improvement beyond China. In Southeast Asia, Singapore has taken the lead: investment volume in Singaporean startups has nearly tripled compared to last year thanks to several large rounds (for instance, a $220 million round for local eSIM service provider Airalo). In India, startup funding has slightly decreased in recent months but remains significant in absolute figures, while major rounds have occurred in semiconductor and robotics sectors in South Korea and Japan (the Korean project Rebellions raised $250 million for developing AI chips). Israel continues to hold its ground as one of the world's innovation centers, despite a noticeable decrease in investment volumes compared to peak levels in 2021.
Europe, while lagging behind the US in funding volumes, maintains stability and gradually gains momentum. The total investment volume in European startups in the last quarter exceeded $13 billion (on par with the previous quarter and 22% higher than a year ago), with about 60% of this amount allocated to early-stage rounds. The continent's startup scene is diversifying: in addition to London and Berlin, major deals are taking place in Paris, Stockholm, Tel Aviv, and other tech centers. Notably, four out of nine global M&A deals worth over $1 billion in the past quarter involved European companies—testament to the maturity of several local players. Moreover, Latin America has contributed to global growth: in Brazil, the volume of venture investments over the summer increased by almost 50%, putting the country back in the region's lead. Thus, the global venture map continues to expand—capital is increasingly moving to various corners of the globe in search of talented teams and innovative ideas.
Russia and the CIS: Local Initiatives Amid Global Trends
Despite external constraints, there is a resurgence of startup activity in Russia and neighboring countries. Regional investors and corporations are launching new funds and programs, aiming to develop local startup ecosystems in line with global trends. Over the last year, the Russian venture investment market has begun to emerge from a state of stagnation: according to the Moscow Innovation Cluster, the volume of venture investments in the Russian Federation in the first half of 2025 increased by nearly 91% compared to the same period in 2024 (to $87 million). Although absolute figures remain modest, the positive trend is evident— the number of active investors has grown by more than 20%, and an increasing number of projects are receiving funding.
As many foreign funds withdraw, local players are filling the void. Private and state venture funds currently provide the lion's share of investments in startups, while the role of business angels has diminished due to high risks and expensive capital. A key trend is the concentration of resources on more mature and stable companies. For instance, the state-backed Moscow Venture Fund, in collaboration with several private funds and corporations, executed five deals totaling ~500 million rubles during the recent Moscow Startup Summit, investing in startups with already validated business models. Major tech companies are also getting involved: Yandex has launched a support program for small businesses amounting to 500 million rubles (offering advertising credits and discounted services for nascent companies), while Sberbank's ecosystem continues to operate a corporate accelerator for fintech projects.
Beyond Russia, venture activity is developing in other former CIS countries. In Kazakhstan and Uzbekistan, new funds and startup accelerators have emerged over the past year, with a Central Asian venture forum scheduled for 2026 aimed at attracting international investors. Thus, the region strives to integrate into the global venture capital market, leveraging its strengths—ranging from AI developments to the traditionally strong fintech and agtech sectors. Although external factors impose constraints, local initiatives inspire cautious optimism and foster hope for further growth of startup ecosystems in the post-Soviet space.
Cautious Optimism and Quality Growth
As of early November 2025, the venture market shows moderately optimistic sentiments. Successful IPOs and major investment rounds indicate that the worst period of decline is behind us, and the ecosystem is entering a new phase of development. Nevertheless, the current upswing is characterized by a more measured approach compared to the frenzied boom of previous years: investors are diligently evaluating opportunities, funds are concentrating on the most promising companies, and startups are expected to demonstrate a more thoughtful unit economics and clear paths to profitability.
Venture capital is now growing more deeply rather than broadly—this refers to quality growth. The market has learned lessons from past "bubbles" and overheating: the valuations of many companies have been recalibrated to more realistic levels, making them more attractive for long-term investment. The consolidation of players reflects a desire for efficiency and sustainability, while the expansion of sector focus indicates that innovative opportunities exist in a wide range of fields. Unless new external shocks occur, experts expect the trend of moderate growth to continue: in 2026, venture investments may keep increasing, but without excessive euphoria, focusing on the quality of projects. Thus, the startup and venture capital market is entering the new year with cautious optimism, balancing high expectations from technologies (particularly AI) with a more sober and rational investment approach.
