Latest and Most Important Startup and Venture Capital News for October 25, 2025. Overview of Major Deals, Trends, New Funds, IPOs, and Investment Directions — From AI to Fintech.
By the end of October 2025, the global venture market is showing robust growth after a prolonged downturn in recent years. Investors are once again actively investing in technology startups—record deals are being made, and plans for companies to go public are back in the spotlight. Major players are returning with substantial investments. As a result, private capital is confidently returning to the startup ecosystem.
The increase in venture activity is evident across all regions. The United States remains the leader (especially in the field of artificial intelligence), investments in the Middle East have practically doubled over the year, and we are seeing shifts in Europe: Germany has surpassed the United Kingdom for the first time in terms of the number of venture deals. India, Southeast Asia, and Gulf countries are attracting record amounts of capital amid a relative slowdown in activity in China. The startup ecosystems of Russia and other CIS countries are also striving to keep pace, despite external restrictions. A new venture boom is forming, although investors are still approaching deals selectively and cautiously.
Below are the key events and trends in the startup industry as of October 25, 2025:
- The return of megafunds and large investors. Leading venture firms are forming unprecedentedly large funds and increasing investments, saturating the market with capital and raising risk appetite.
- Record funding rounds in AI and new “unicorns.” Enormous investments are driving startup valuations to unseen heights, primarily in the artificial intelligence segment.
- Revival of the IPO market. The successful public offerings of several tech companies and new applications confirm that the long-awaited exit “window” is once again open.
- Diversification of investment sectors. Venture capital is flowing not only into AI projects but also into fintech, climate technologies, biotech, defense technologies, and even crypto startups.
- A wave of consolidation: mergers and acquisitions (M&A) deals. New major mergers and strategic acquisitions are reshaping the industry landscape, creating opportunities for lucrative exits and accelerated growth for companies.
- Local focus: Russia and the CIS. New funds and initiatives are emerging in the region to support local startups, attracting investor attention despite restrictions.
- Cautious optimism among investors. The market is experiencing a resurgence, but participants maintain a balanced approach to assessing startups and avoid excessive risk.
The Return of Megafunds: Big Money Back in the Market
The largest investment players are making a triumphant return to the venture arena, signaling a new wave of risk appetite. For example, the Japanese conglomerate SoftBank led one of the biggest funding rounds of the year, investing tens of billions of dollars into artificial intelligence. Sovereign funds from the Gulf countries have also become more active: they are pouring billions into technology projects and developing government mega-programs to support the startup sector, establishing their own "tech hubs" in the Middle East. Meanwhile, dozens of new venture funds are being created worldwide, attracting significant institutional capital for investments in high-tech sectors.
Leading venture firms in Silicon Valley are expanding their market presence. Funds have accumulated massive reserves of uninvested capital (“dry powder”)—hundreds of billions of dollars poised for investment as confidence restores. The influx of such "big money" is filling the startup market with liquidity, providing resources for new funding rounds and supporting the growth of promising company valuations. The return of megafunds and large institutional investors intensifies competition for the best deals, while also instilling confidence in the industry for further capital inflow.
Record Investments in AI and New “Unicorns”
The artificial intelligence sector remains the main driver of the current venture boom, demonstrating record financing volumes. Investors are eager to stake their claims among AI market leaders, directing colossal funds into the most promising projects. In just the past few weeks, several mega-rounds have been announced: the American startup Crusoe, which focuses on infrastructure for AI data centers, raised about $1.38 billion at a valuation of around $10 billion; significant rounds were also closed by essential AI model developers Anthropic ($13 billion) and xAI (about $5.3 billion). Such deals elevate company valuations to unprecedented heights and highlight the excitement surrounding AI startups.
Importantly, investments are being made not only in end AI applications but also in the infrastructure for them—the market is ready to finance even the “shovels and picks” for the new gold rush of artificial intelligence. As a result, the current investment boom is giving rise to a new array of “unicorns” (startups valued at over $1 billion). Experts warn of the risk of overheating certain projects; however, the appetite for venture capital in AI startups has not yet waned.
The IPO Market Revives: A Wave of Public Offerings
The global IPO market is emerging from a prolonged lull and gaining momentum. In Asia, Hong Kong is leading the new wave of listings, with several large tech companies successfully going public in recent months, attracting billions of dollars in aggregate. In the US and Europe, the situation is also improving: several highly valued startups have successfully debuted on stock exchanges, demonstrating high investor interest and rising stock prices in the initial trading days.
Major venture IPOs of the third quarter of 2025 include:
- Chery Automobile – a Chinese automaker, the valuation at IPO is one of the highest of the year.
- Figma – an American design platform that listed shares at a valuation of around $15–20 billion.
- Klarna – a Swedish fintech unicorn (a BNPL service) that successfully went public.
- Netskope – an American cybersecurity company that completed its listing with a multibillion-dollar valuation.
Overall, more than a dozen IPOs of venture companies with valuations exceeding $1 billion took place on global exchanges during the third quarter, significantly more than the previous year. The success of these offerings opens up long-awaited exit opportunities for venture funds, allowing them to lock in profits and direct freed-up capital into new projects.
Diversification of Investments: Not Just Artificial Intelligence
In 2025, venture capital infusions are encompassing an increasingly broad range of sectors, extending beyond the single AI boom. Following the decline of the previous year, fintech is also reviving: major rounds are happening not only in the US but also in Europe and emerging markets, stimulating the growth of new digital financial services. Increased investor attention is being attracted by climate and "green" technologies amid a global trend for sustainability.
- Fintech: The fintech sector is receiving substantial funding across various regions, fueling the creation of new payment and banking solutions.
- Climate and Agri-tech: Projects in renewable energy, eco-technologies, and agritech are attracting record investments due to the priority of the environmental agenda.
- Biotechnology and Medtech: Breakthrough developments in pharmaceuticals and digital health are again in the spotlight of venture capital, with the sector emerging from a phase of declining valuations.
- Defense Technologies: Investors are also showing increased interest in startups in the defense and aerospace sectors.
- Crypto Startups: A partial restoration of trust in the crypto market has allowed several blockchain companies to secure funding again.
Thus, venture capital is diversifying across industries, making the entire startup ecosystem more resilient and reducing the risk of overheating in any particular segment. The expansion of investors' focus across various sectors means that besides AI, they are also willing to support fintech innovators, "green" startups, med-tech platforms, and other promising directions.
Market Consolidation and M&A Activity
High startup valuations and fierce competition are driving a wave of consolidation in the industry. Major mergers and acquisitions are once again coming to the forefront, reshaping the market landscape. Tech giants are actively eyeing leaders among startups, aiming to acquire key technologies and teams.
In recent months, several acquisitions have captured industry attention. For example, Google has agreed to acquire Israeli cybersecurity startup Wiz for approximately $32 billion—a record amount for the Israeli market. The activity in the M&A sphere indicates market maturation: mature startups are either merging with each other or becoming targets for acquisition by corporations, while venture investors are finally receiving the long-awaited opportunities for profitable exits.
Russia and the CIS: New Funds and Initiatives
Despite external restrictions, efforts are underway in Russia and neighboring countries to develop the local startup ecosystem. In 2025, several new venture funds have been announced: for instance, the Nova VC fund with a volume of 10 billion rubles dedicated to investments in IT startups, and the investment company Kama Flow has launched a similar-sized fund focused on late-stage investments. Additionally, large corporations and banks are creating corporate venture funds aimed at supporting domestic technology projects.
Beyond funding, accelerators, startup schools, and other initiatives are being launched to support entrepreneurs. Local startups are gradually attracting attention not only from Russian investors but also from foreign partners from friendly countries. Although the market volumes of Russia and the CIS still lag behind global leaders, the region is striving to keep pace with global trends. Venture investors here remain selective and focus on niches where local teams have competitive advantages.
Cautious Optimism: Outcomes and Prospects
As we approach 2026, the startup and venture investment industry is entering a revitalization phase. The global influx of capital, a series of new “unicorns,” successful IPOs, and strategic deals indicate a restoration of confidence in the market.
Simultaneously, participants in the ecosystem maintain a degree of caution. Investors are approaching project evaluations more judiciously and seeking to avoid excessive risks. This balanced approach inspires optimism: the venture market is growing more sustainably, opening new opportunities for investors and founders worldwide.
