Recent News in Startups and Venture Investments as of Sunday, October 26, 2025: The Return of Mega Funds, Record AI Rounds, IPO Resurgence, Climate Innovations, a Wave of M&A Deals, and Global Market Trends.
By the end of October 2025, the global venture market is confirming a robust growth trajectory following several years of decline. Investors around the world are once again actively financing technology startups—record deals are being made, and companies are refocusing on IPO plans. Major players are returning to the arena with large-scale investments, while governments in various countries are intensifying support for innovation. As a result, private capital is gradually flowing back into the startup ecosystem, providing the resources for a new growth cycle. According to industry analysts, during the third quarter of 2025, the total volume of venture investments worldwide increased by nearly 40% year-over-year—a clear indicator of the renewed risk appetite.
The uptick in venture activity is being observed across all regions. The U.S. continues to lead (especially in the AI segment), while the Middle East has nearly doubled its investment volume over the year, and notable shifts are occurring in Europe: Germany has surpassed the UK in venture funding for the first time. In Asia, regulatory uncertainty continues to hamper activity in China, while India, Southeast Asia, and the Gulf countries are attracting record capital. The investment boom is pushing into new horizons: dedicated tech hubs are forming in Africa and Latin America (recently, Africa saw its largest investment of ~ $100 million in the electric vehicle sector). The startup ecosystems in Russia and the CIS countries are also striving to catch up despite external restrictions. A global venture upturn is taking shape at the early stages, even as investors remain selective and cautious.
Below are the key events and trends in the startup industry as of October 26, 2025:
- The Return of Mega Funds and Large Investors. Leading venture funds are attracting record amounts of capital and sharply increasing investments, injecting liquidity into the market and rekindling risk appetite.
- Record Funding Rounds in AI and a New Wave of "Unicorns." Exceptionally large investments in AI startups are driving company valuations to unprecedented heights, spawning a new generation of "unicorns."
- IPO Market Revival. Successful public listings of technology companies and new applications for listing indicate that the long-awaited exit "window" has reopened.
- Boom in Defense Technologies Investment. The geopolitical situation is stimulating increased attention towards startups in defense and security, bringing them to the forefront of the venture agenda.
- Sector Focus Diversification. Venture capital is flowing not just into AI but also into fintech, climate (“green”) projects, biotechnology, and even crypto startups.
- Consolidation Wave: M&A Deals. New major mergers and acquisitions are reshaping the industry landscape, creating opportunities for profitable exits and accelerated growth for companies.
- Local Focus: Russia and the CIS. New funds and programs are being launched in the region to develop local startup ecosystems, attracting investor interest despite external limitations.
- Cautious Investor Optimism. The market is experiencing a rally, yet participants maintain a balanced approach to project evaluation and avoid excessive risk.
The Return of Mega Funds: Big Money Back in the Market
The largest investment players are triumphantly returning to the venture scene, marking a new phase of risk appetite. The Japanese conglomerate SoftBank, for example, has made one of the year's largest bets, investing tens of billions of dollars in an AI market leader. Sovereign funds from the Gulf countries have also notably ramped up their activity, pouring billions into technology projects and launching state mega-programs to support the startup sector, thereby establishing their own tech hubs in the Middle East. Simultaneously, new venture funds are being created worldwide, attracting significant institutional capital for investments in high-tech industries.
Renowned Silicon Valley funds have accumulated record reserves of uninvested capital (“dry powder”)—hundreds of billions of dollars are ready to be deployed as confidence in the market returns. The influx of such "big money" intensifies competition for the best deals while instilling confidence in the sector regarding the future availability of capital. The return of mega funds illustrates that investors are once again willing to finance ambitious projects with large checks, revitalizing the growth dynamics of the venture market.
Record Investments in AI and New "Unicorns"
The AI sector is positioning itself as the main driver of the current venture boom, showing unprecedented funding volumes. Investors are eager to secure their place among the leaders in the AI market, directing colossal funds into the most promising projects. Just in recent weeks, several mega-rounds have been announced. For instance, American startup Crusoe, which is creating infrastructure for AI data centers, raised approximately $1.38 billion at a valuation of around $10 billion. Similarly, significant rounds were closed by foundational AI model developers: Anthropic (around $13 billion) and xAI (approximately $5.3 billion). Such deals are elevating company valuations to unseen heights and highlighting the excitement surrounding AI startups.
Importantly, funding is going not only to applied AI products but also to infrastructure solutions—the market is generously paying for even the "shovels and picks" of this new gold rush in artificial intelligence. Consequently, the current investment boom is giving rise to a whole host of new "unicorns" (startups with valuations exceeding $1 billion). Experts warn of the risk of overheating in some projects; however, the venture capital appetite for AI startups remains extremely high for now.
IPO Market Comes Alive: Wave of Public Offerings
The global market for initial public offerings (IPOs) is emerging from a prolonged lull and regaining momentum. In Asia, Hong Kong has ignited a new wave of IPOs, where several large tech companies have successfully gone public in recent months, collectively raising billions of dollars. The situation is also improving in the U.S. and Europe: several highly valued startups have successfully debuted on the public market, generating significant investor interest and price increases in the early days of trading.
The largest venture IPOs of the third quarter of 2025 included:
- Chery Automobile — a Chinese automaker, whose IPO valuation became one of the highest of the year.
- Figma — an American design platform that launched its shares with a valuation of approximately $15–20 billion.
- Klarna — a Swedish fintech "unicorn" (a "buy now, pay later" service) that successfully entered the public market.
- Netskope — an American cybersecurity company that completed its listing with a multi-billion dollar valuation.
Boom in Defense Technologies: A New Venture Market Priority
Amid geopolitical tensions, the niche for defense technologies is rapidly evolving. Venture investors are actively financing startups related to defense and security, and investment volumes in this sector in 2025 have significantly increased, nearing record levels of previous years. Startups in defense technologies are emerging as a new growth point for the industry.
New "disruptors" are appearing, challenging traditional defense giants—a prominent example is the startup Anduril, valued at around $30 billion. Major venture funds are also directing significant resources to national security projects, confirming the establishment of a new priority for the industry.
Investment Diversification: Beyond AI
In 2025, venture investments are encompassing an increasingly broader array of sectors, no longer limited to artificial intelligence alone. Following a downturn the previous year, fintech is reviving: significant funding rounds are taking place not only in the U.S. but also in Europe and emerging markets, fueling the growth of new financial services. Concurrently, interest in climate technologies, "green" energy, and agrotechnology is intensifying—these sectors are attracting record investments amid the global trend toward sustainability. Biotechnology and digital healthcare also remain in focus for investors.
Thus, venture capital is gradually being distributed across different industries, making the startup ecosystem more resilient and reducing the risk of overheating in a single segment. The expansion of focus from AI to multiple sectors indicates that, in addition to innovations in AI, investors are ready to support fintech innovators, "green" startups, medtech platforms, cryptocurrency projects, and other promising directions.
Market Consolidation and M&A Deals
High valuations of startups and fierce competition are triggering a wave of consolidation within the industry. Major mergers and acquisitions (M&A) are once again coming to the forefront, redistributing roles within the market. Tech giants are actively scouting for leaders among startups, aiming to acquire key technologies and teams.
In recent months, several high-profile acquisitions have garnered industry attention. For instance, Google agreed to acquire Israeli cybersecurity startup Wiz for approximately $32 billion—a record sum for the Israeli market. The activation of M&A indicates the maturing of the ecosystem: mature startups are either merging with one another or becoming acquisition targets for corporations. Venture funds, in turn, are presented with opportunities for much-awaited profitable exits and the return of capital for new investments.
Russia and 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 were announced:
- Nova Capital — a fund of 10 billion rubles for investments in IT startups.
- Kama Flow — launching a fund of similar size aimed at supporting later-stage startups.
- Major corporations and banks are forming corporate venture funds focused on domestic technology projects.
In addition to financing, accelerators, startup schools, and other initiatives are being launched to support entrepreneurs. Local startups are gradually attracting the attention of not only Russian investors but also foreign partners from friendly countries. Although the market volume in Russia and the CIS still lags behind global leaders, the region is making efforts to keep pace with global trends. Venture investors here are acting selectively and focusing on niches where local teams have competitive advantages.
Cautious Optimism: Results and Prospects
As we approach 2026, the startup industry and venture investments are confidently entering a phase of revitalization. The global influx of capital, the wave of new "unicorns," successful IPOs, and strategic deals all indicate a restoration of trust in the market.
However, participants in the ecosystem maintain a degree of caution. Investors are approaching project evaluations more deliberately and are striving to avoid excessive risk. This balanced approach inspires optimism: the venture market is growing on a more sustainable foundation, opening new opportunities for investors and founders worldwide.
