Startup and Venture Investment News - Sunday, October 5, 2025: AI Funds, Mega Rounds, and New Market Trends

Startup and Venture Capital News — Sunday, October 5, 2025: Record AI Rounds, IPO Preparations, and New Funds

At the beginning of October, the venture capital market is sending mixed signals. On one hand, the increase in multi-million dollar deals in the field of artificial intelligence (AI) and semiconductors has led to a surge in global investments. On the other hand, valuations of certain startups raise concerns about market overheating. For investors in the CIS, not only global statistics are relevant but also local news: the Moscow Startup Summit took place, where over 1.2 billion rubles were offered for early-stage projects, and regional funds presented new instruments for support. Below is a detailed analysis of key trends.

Global Trends: Concentration of Capital Around AI and Semiconductors

PitchBook data for the first quarter of 2025 indicated that 57.9% of all venture funding was directed towards AI, with raised capital amounting to $73.1 billion. By the third quarter, according to Bloomberg, total investments in AI startups surpassed $192.7 billion. This influx of "large checks" is accompanied by a decline in the number of deals and a drop in early-stage funding, as noted by analysts worldwide. In South Korea, only 296 venture deals were made in the third quarter, down 35% from the previous year; however, the total investment volume rose to 2.43 trillion won (≈ $1.8 billion) thanks to eleven large rounds exceeding 50 billion won each. Most of the funds went to companies like Rebellions, FuriosaAI, and Medit, which focus on AI processors and medical technologies. Simultaneously, the number of seed and Series A rounds has nearly halved.

Experts warn that valuations in the AI sector are beginning to detach from reality: according to Brian Yo, head of the investment arm of Singapore's GIC, some companies are being valued at $400 million to $1.2 billion per employee, and investors are eager to pay for the "AI" brand. PitchBook's research director, Kyle Sanford, remarks that the market has "split"; major players in AI are attracting record sums, while traditional projects struggle to capture investor attention.

Major Rounds of the Week

Global investors continue to place bets on infrastructure and deep-tech projects. The largest deals from the past week include:

Cerebras Systems — an AI chip developer raised $1.1 billion in a Series G round. Investors included Fidelity and Atreides Management, with the company's valuation reaching $8.1 billion.
Nscale — a data center operator for AI, secured $433 million for building next-generation data centers.
Filevine — a provider of a legal automation platform, raised $400 million with participation from StepStone Group and Golub Capital.
Periodic Labs — a startup creating autonomous laboratories for scientific experiments, launched with $300 million in seed capital from Andreessen Horowitz, NVentures, DST Global, and other funds.
Vercel — a developer platform providing corporate cloud hosting, attracted $300 million at a valuation of $9.3 billion.
Rebellions — a South Korean chip developer received $250 million in a Series C round to market RISC-V-based processors.
Crystalys Therapeutics — a biotechnology firm, raised $205 million for the development of a gout treatment.
Flying Tulip — a fintech platform for decentralized exchange, closed a $200 million round with participation from CoinFund, DWF Labs, and FalconX.
Supabase — a developer of tools for PostgreSQL, received $100 million with a valuation of $5 billion. The growing demand for development platforms and MLOps supports investor interest.
Other deals: Eve ($103 million), Einride ($100 million for autonomous trucks), DualEntry ($90 million), Empower Semiconductor ($140 million for enhancing AI energy efficiency).

Such concentrated activity affirms the thesis of a capital shift towards infrastructure companies focused on hardware, cloud, and tools for AI.

New Funds and Strengthening Military Technology Sector

In addition to deals, specialized funds are emerging to finance complex technologies. In the U.S., the Wave Function Ventures fund launched with a volume of $15 million, focusing on hardware and deep-tech startups. Meanwhile, the Spanish fund 4Founders Capital raised €70 million for early-stage investments in fintech and cybersecurity. In Europe, the number of funds supporting defense and dual-use technologies is rising, driven by geopolitical risks; investors demand clear commercial roadmaps and revenues from startups.

In Russia, several new funds were launched in 2025:

"Medscan" has formed a fund of 10 billion rubles to support medical startups.
Rebel Capital, founded by 3DLook co-founder Vadim Rogovskiy and investor Anna Markusskaya, aims to acquire IT companies.
Kama Flow launched a fund of 10 billion rubles intended for late-stage high-tech companies.
T-Investments offers private investors access to venture opportunities, reflecting the trend of market democratization.

Additionally, Moscow corporations Gazprom Neft and Sber have agreed at the Moscow Startup Summit to create joint programs for young tech startups: Gazprom Neft will connect its expertise to Sber's accelerators to bring projects to market in the oil and gas sector. According to Maxim Bardin, director of Gazprom Neft's open innovation program, graduates of youth accelerators have already attracted over 750 million rubles, and combining efforts will provide them with new opportunities.

Modernization of the IPO Market and Paths to Liquidity

In the fall of 2025, public markets are experiencing a revival. AI companies are particularly attracting attention: SoftBank and MGX backed an OpenAI tender, valuing the company at $500 billion, while “Fermi America” debuted on Nasdaq with a market capitalization of $21.5 billion. Several major companies are preparing for their IPOs:

Wealthfront has filed for an IPO, reporting a revenue increase of 43% to $309 million and net profit of $194 million.
Navan has increased its revenue by 30% in the first half and plans a listing in the U.S. that could value it at over $8 billion.
Spanish travel service TravelPerk has hired banks Morgan Stanley, Goldman Sachs, and Jefferies to prepare for a U.S. listing.
Zelis Healthcare is considering a public offering in 2026 and has already secured additional capital for business expansion.
Dataiku has prepared Morgan Stanley and Citigroup for a potential IPO in the first half of 2026; the company serves over 700 corporate clients and has annual revenues exceeding $300 million.
Klook, a service for booking activities and tours, has chosen Goldman Sachs, Morgan Stanley, and JPMorgan for a potential U.S. listing, which could attract $500 million depending on market conditions.

Beyond public markets, significant secondary deals are noteworthy: a group of investors led by the Saudi PIF and Silver Lake plans to acquire Electronic Arts for $55 billion. Meta is looking to acquire the startup Rivos, which develops RISC-V-based microprocessors, to enhance its semiconductor capabilities.

M&A and Corporate Deals

Amid a decrease in IPOs, venture investors are shifting their focus to strategic M&A deals and partnerships. Key events of the week include:

Meta Platforms reached an agreement to acquire the startup Rivos, which creates RISC-V compatible chips for AI systems, bolstering the MTIA (Meta Training and Inference Accelerator) direction. The deal amount is undisclosed, but Rivos was previously valued at nearly $2 billion.
Perplexity acquired design startup Visual Electric, enhancing its capabilities in generative AI.
A group of investors, including Saudi PIF, Silver Lake, and Affinity Partners, is buying Electronic Arts for $55 billion, illustrating sovereign funds' interest in IP projects within the gaming industry.
In Russia, Arenadata acquired Ubic Technologies, expanding its big data processing ecosystem.

Concurrently, technological partnerships are developing: OpenAI has negotiated memory supplies with Samsung and SK Hynix to reduce AI server costs, Salesforce has unveiled the AI Cloud service for developers, and Stripe has obtained federal and New York licenses for issuing stablecoins, paving the way for tokenization of financial transactions.

The Russian and Neighboring Markets: Startup Survival and New Deals

Research from the Moscow Innovation Cluster showed that 61% of Russian tech companies survive their first three years of operation, aligning with figures in Europe and the U.S. Despite the myth of "90% failures," modern startups are more resilient, particularly due to support from clients, partners, and development institutions. However, 80% of teams face crises in their early years, making the adaptation of business models and the building of strong teams crucial.

This week, several Russian and CIS startups attracted new capital:

Nozomio (Kazakhstan) — an AI-based payment service developer received $6.2 million from Y Combinator, CRV, and other investors.
Platformeco — a service supporting marketplaces, attracted 100 million rubles from Kama Flow.
Altairika (EdTech) — raised 39.7 million rubles ahead of its IPO.
Qummy — an AI system for enterprise management, secured 440 million rubles, confirming growing investor interest in business applications based on machine learning.
Pavel Durov announced the launch of an AI laboratory in Astana, demonstrating private capital's interest in developing regional scientific potential.
Yandex.Eda launched a platform for collaboration between restaurants and influencers, opening up a new monetization channel for small businesses.

Additionally, at the Moscow Startup Summit, new projects from the Sber500 accelerator were presented: 25 finalists out of 1,900 teams received offers totaling over 1.2 billion rubles. Among the presented solutions are a diagnostic platform for identifying mental disorders through lipidomic blood analysis, next-generation neuroprocessors, 3D printing of multi-story buildings, and a portable breathing trainer with an AI assistant. 85% of the startups operate with artificial intelligence, highlighting the dominance of technology even in the local ecosystem.

Trends in Asia and Solutions for Youth

South Korea demonstrated a sharp increase in venture investments in the third quarter of 2025: the financing volume reached 2.43 trillion won, while the number of deals decreased. Almost 70% of capital flowed into stages B and C, while the share of early rounds fell by 44%. The AI and semiconductor sector dominates, attracting global capital; however, local experts warn that a reduction in seed deals may lead to a decline in the startup pipeline. To support the innovation ecosystem, the government needs to find a balance between large investments and supporting beginner teams.

Meanwhile, in Russia, the gas company and the largest bank agreed to joint programs for youth startups. The signing of the agreement between Gazprom Neft and Sber at the Moscow Startup Summit expands opportunities for budding teams; the “Industry” and “Sber500” accelerators, which have already helped graduates attract over 750 million rubles in investments, are joining the initiatives. Such steps highlight the importance of synergy between corporate giants and the startup ecosystem.

What This Means for Venture Investors

The shift of capital towards AI, semiconductors, and other deep technologies is evident. However, the rapid growth of valuations and declining early-stage deals signify higher risks. Investors should:

Select quality projects. Pay attention to teams with mature technologies and sustainable business models; in 2025, 61% of Russian startups survive their first three years and demonstrate long-term growth potential.
Diversify the portfolio. Besides AI, fintech for B2B, dual-use defense technologies, and climate projects, especially in Asia and Europe, are of interest.
Prepare exit strategies. The IPO market is reviving, but companies are exploring hybrid liquidity mechanisms through secondary deals and strategic sales. It’s essential for investors to plan potential exits in advance.
Monitor the regulatory environment. The development of RISC-V and semiconductors, licensing of stablecoins, and strengthened control over AI models create both risks and opportunities for portfolio companies.
Collaborate with corporates. Joint accelerators, partnerships with industry leaders, and pilots in the real sector will allow startups to test hypotheses and scale solutions faster.

Looking ahead to next year, expectations are cautiously optimistic: the recovery of the IPO market and the emergence of new funds may open up opportunities for investment exits, but overheating in the AI sector requires a careful approach to valuations and portfolio management.