Startup and Venture Capital News — Wednesday, October 29, 2025: Mega Rounds in AI, Boom in Climate Startups, Defense Technologies, and a New Wave of IPOs
By the end of October 2025, the global venture market continues to gain momentum following a period of decline. Investors worldwide are once again actively funding tech startups, resulting in record funding rounds, while companies' plans for IPOs have returned to the spotlight. Major players are returning to the arena with substantial investments, and governments across various countries are ramping up support for innovation. As a result, private capital is flowing into startup ecosystems around the world, providing resources for a new wave of growth.
Growth in venture activity is evident across all regions. The United States is firmly in the lead (especially in the field of artificial intelligence), while the Middle East sees record investment volumes in startups. Germany has surpassed the UK for the first time in the number of venture deals. India, Southeast Asia, and Gulf countries are attracting record amounts of capital against a backdrop of a relative decline in activity in China. Tech hubs are also emerging in Africa and Latin America (for instance, Africa recently saw its largest investment of about $100 million in the electric mobility sector). The startup ecosystems in Russia and the CIS countries are striving to keep pace despite external constraints. A global early-stage venture boom is forming, even though investors remain selective and cautious.
Below are the key events and trends shaping the venture market agenda as of October 29, 2025:
- Return of mega funds and large investors. Leading venture funds are attracting unprecedented volumes of capital and sharply increasing investments, saturating the market with liquidity and igniting risk appetite.
- Record rounds in AI and a new wave of 'unicorns'. Unprecedented deals are driving startup valuations to unseen heights, particularly in the artificial intelligence segment, and birthing new 'unicorns'.
- Revival of the IPO market. Successful tech company listings and new applications for listing confirm that the long-awaited 'window' for exits has reopened.
- Diversification of industry focus. Venture capital is flowing not only into AI but also into fintech, climate projects, biotechnology, defense technologies, and even crypto startups.
- Wave of consolidation and M&A deals. New significant mergers, acquisitions, and strategic investments are reshaping the industry landscape, creating opportunities for exits and accelerated growth.
- Local focus: Russia and the CIS. Despite restrictions, new funds and initiatives are being launched in the region to develop local startup ecosystems, attracting investor attention.
Return of Mega Funds: Big Money Back on the Market
The largest investment players are triumphantly returning to the venture scene, signaling a renewed appetite for risk. For example, the Japanese conglomerate SoftBank has announced the creation of its new Vision Fund III, estimated at around $40 billion, focused on advanced technologies (including artificial intelligence and robotics). Sovereign funds from Gulf countries have also ramped up their activities, pouring billions into tech projects and developing state megaprograms to support the startup sector, thereby forming their own tech hubs in the Middle East. Simultaneously, numerous new venture funds worldwide are attracting significant institutional capital for investments in high-tech sectors.
Renowned Silicon Valley firms are also increasing their presence. In the American venture sector, funds have amassed unprecedented reserves of uninvested capital ("dry powder")—hundreds of billions of dollars ready to be deployed as confidence in the market grows. The influx of "big money" is filling the startup market with liquidity, providing funding 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 inflows.
Record Investments in AI and a New Wave of 'Unicorns'
The artificial intelligence sector is the main engine of the current venture upturn, demonstrating record funding volumes. Venture investors are eager to stake their claims in the leaders of this sector, directing massive funds into the most promising AI projects. For instance, the startup xAI, led by Elon Musk, reportedly raised about $10 billion, while OpenAI secured around $8 billion at an estimated valuation of about $300 billion—both rounds were significantly oversubscribed, highlighting the excitement surrounding AI companies. Notably, investments are directed not only to end applications based on AI but also to the infrastructure for them: the market is ready to fund even the "shovels and pickaxes" for the new AI ecosystem, such as startups in data storage and AI chip manufacturing.
This current investment boom is giving rise to a wave of new 'unicorns'—startups valued at over $1 billion. Although experts warn of overheating risks and the formation of a 'hype bubble' around AI, investors' appetite for AI startups remains strong. However, the growing concentration of capital in a narrow group of leaders raises concerns: the market is becoming 'two-speed,' where successful AI companies attract the lion's share of funds, while many lesser-known startups outside the AI domain find it harder to secure financing.
IPO Market Revives: A Window of Opportunity for Exits
The global market for initial public offerings is emerging from its dormancy and gaining traction. In Asia, Hong Kong has launched a new wave of IPOs: several major tech companies have gone public there in recent weeks, collectively raising billions of dollars. For example, the Chinese battery manufacturer CATL successfully raised approximately $5 billion in its public offering, demonstrating that investors in the region are again ready to actively participate in IPOs.
The situation is also considerably improving in the US and Europe. The American fintech 'unicorn' Chime recently debuted on the stock market, and its shares rose approximately 30% on the first day of trading. Following it, the design platform Figma conducted an IPO, raising about $1.2 billion at an estimated valuation of around $15–20 billion; Figma's stock also rose confidently in the initial trading days. In the second half of 2025, other well-known startups are preparing for their public market debuts, including payment service Stripe and travel technology company Navan, which plans to raise about $1 billion. Even representatives from the crypto industry are attempting to take advantage of the revival: for instance, the financial company Circle successfully went public last summer (its stock subsequently surged), while crypto exchange Bullish has filed for a listing in the US with a target valuation of about $4 billion.
The resurgence of activity in the IPO market is critically important for the venture ecosystem: successful public exits allow venture funds to realize profitable exits and redirect freed-up capital into new projects. According to industry analysts, by the end of October, the number of IPOs in the American market has increased nearly 60% compared to the previous year. This confirms that the 'window of opportunity' for exits is open and that investors are once again ready to welcome new public companies.
Diversification of Investments: Not Just AI
In 2025, venture investments are covering an increasingly broader range of sectors and are no longer confined solely to artificial intelligence. Following last year's decline, the fintech sector is picking up steam again: large funding rounds are occurring not only in the US but also in Europe and emerging markets, fueling the growth of new financial services. Simultaneously, interest in climate technologies and 'green' projects is increasing—this segment is attracting record investments in the wave of a global trend toward sustainability. Just in the first nine months of 2025, over $50 billion was invested in climate and clean energy startups, surpassing the total for all of 2024.
There is also a revitalized appetite for biotechnology: the emergence of new drugs and medical online platforms is once again attracting capital as the industry emerges from a period of declining valuations. Furthermore, amid increased attention to security, investors are more actively supporting defense technology projects—startups related to defense and cybersecurity are coming to the forefront of the venture agenda. Finally, a partial recovery of trust in the cryptocurrency market has allowed some blockchain startups to secure funding again. This expansion of industry focus is making the entire startup scene more resilient and reducing the risk of overheating in specific economic segments.
Consolidation and M&A Deals: Consolidating Players
High startup valuations and fierce competition for markets are propelling the industry towards consolidation. Major mergers and acquisitions are once again taking center stage, reshaping the balance of power. For instance, Google is reportedly set to acquire Israeli cybersecurity startup Wiz for approximately $32 billion—a record sum for Israel’s tech sector. Such mega-deals demonstrate the desire of tech giants to secure key technologies and talent.
Overall, the current activity in the acquisition and major strategic deals reflects the market's maturation. Mature startups are merging with each other or becoming targets for acquisition by corporations, while venture investors are seizing the long-awaited profitable exits. For example, Shane Coplan, the founder of blockchain platform Polymarket, sold a stake in the company for $2 billion to a strategic investor (the owner of the New York Stock Exchange), valuing the startup at $8 billion and making Coplan the youngest self-made billionaire in the world. Additionally, AMD has signed a multi-billion dollar deal with OpenAI to supply it with specialized AI chips and received an option for equity, indicating a new partnership format between large corporations and startups.
The wave of consolidation has reached various sectors: from fintech to healthcare, from artificial intelligence to defense. Major venture funds and investors are also participating in these deals, aiming to lock in profits and redirect capital towards new promising projects. Ultimately, the consolidation of players creates conditions for more sustainable growth: the strongest companies gain access to each other's resources and technologies, while investors obtain a way out of their investments and opportunities for reinvestment.
Russia and CIS: Local Initiatives in the Context of Global Trends
Despite external constraints, a revival of startup activity is noticeable in Russia and neighboring countries. In particular, several new venture funds with a total volume of about 10–15 billion rubles have been announced, aimed at supporting early-stage tech projects. Local startups are beginning to attract significant capital: for example, the Krasnodar-based food-tech startup Qummy recently raised 440 million rubles in investments at a valuation of about 2.4 billion rubles. Additionally, authorities are taking steps to stimulate the market: the Russian Ministry of Finance has stated plans to require large state companies to invest in startups, acting as 'business angels' to channel some corporate funds into supporting innovations.
Several large companies are also contemplating bringing their tech divisions to the stock market as market conditions improve— for example, VK Tech has allowed for the possibility of an IPO in the foreseeable future. Notably, Russia has again permitted foreign investors to invest in local projects, gradually restoring interest from overseas capital. While the volumes of venture investments in the region are still modest compared to global figures, they are steadily growing. New government support measures and corporate initiatives aim to provide an additional boost to the local startup scene and integrate it into global trends.
Cautious Optimism and Quality Growth
By the end of October 2025, the venture market demonstrates moderately optimistic sentiments: successful IPOs and major deals confirm that the downturn period is behind us. Nonetheless, investors remain selective in their investments, favoring startups with sustainable business models. Huge capital inflows into AI and other sectors instill confidence in prospects, but funds are seeking to diversify portfolios and rigorously control risks to prevent a new upswing from overheating. Thus, the industry is entering a new phase of development focused on quality, balanced growth. Unless external shocks occur, the current venture upturn stands a chance of smoothly transitioning into 2026, continuing to delight investors with new opportunities.
