Global Startup and Venture Capital News as of October 7, 2025: New Mega-Rounds in AI and Fintech, Launch of Major Funds, and Growth of Venture Capital Volumes. An Analysis of Global Trends and Deals.
The global venture capital industry has entered the last quarter of the year with a new record. The third quarter of 2025 brought $97 billion to global startups, a 38% increase from the previous year. According to PitchBook and Bloomberg, artificial intelligence (AI) has become the main theme: by October, investments in AI startups reached $192.7 billion, accounting for more than half of the total venture capital inflow of $366.8 billion. American funds allocated 62.7% of their investments to AI, while global investors accounted for 53.2%, suggesting that 2025 might be the first year in which the majority of venture capital is directed toward the AI sector.
Business investors are not only witnessing a surge in numbers but also a shift in market structure: mega-rounds concentrated in 18 companies accounted for one-third of all capital raised, with late-stage rounds growing by 66% year-over-year. Alongside the increase in AI funding, a “two-speed” market is forming: large players are receiving billion-dollar checks, while younger companies are encountering a decline in deal volume, stricter terms, and increasing demands from investors.
Below are the key trends of the week for those managing venture funds and seeking new opportunities.
- Artificial Intelligence captures over half of venture investments. By early October, AI accounted for $192.7 billion, or 52.5% of the total venture investment volume. The lion's share has come from major players like Anthropic and xAI.
- Mega-rounds shape the market. 18 companies attracted one-third of all funding; the largest deals were for Anthropic ($13 billion), xAI ($5.3 billion), Mistral AI ($2 billion), and Cerebras Systems ($1.1 billion).
- Sectors are diversifying. In addition to AI, substantial sums were allocated to hardware companies ($16.2 billion), healthcare and biotech ($15.8 billion), fintech ($12 billion), and blockchain. Significant rounds are emerging in biopharma and cybersecurity.
- Consolidation and spin-outs. Major corporate venture units are seeking greater independence: Gradient Ventures (Google) established its own management company, and Axa Venture Partners and JetBlue Ventures have previously separated.
- Revival of public market exits. The ecosystem is experiencing a resurgence: 16 venture companies successfully went public for over $1 billion each, and M&A deals (OpenAI – Statsig, Workday – Sana, and others) are back in focus.
- Russia and CIS are returning to growth. By the end of the first half of the year, local investments increased to $83 million (+81%), although the number of deals decreased; the average check is rising, and the focus is shifting in favor of AI and industrial software, as seen in the deals with Platformeco and Piklema, as well as the establishment of a new chemical fund in Tatarstan.
AI Dominance and Record Investments
A third of global venture activity is now centered around artificial intelligence. According to PitchBook, investments in AI startups surpassed $192 billion by October, representing 52.5% of total investments in 2025. Bloomberg analysts note that this year may be the first when over half of venture capital goes to AI. Major funding has flowed into mature companies like Anthropic and xAI; the former raised $13 billion in September, achieving a valuation of $183 billion, while the latter secured $5.3 billion. Investors see immense potential for scaling generative AI platforms, attracting strategic capital from tech giants and sovereign funds.
The growth of investments in AI coincides with a decrease in the overall number of funds: in 2025, 823 venture funds raised $80 billion, compared to 4,430 funds that secured $412 billion in 2022. This figure reflects market consolidation and a shift in focus towards larger strategies. PitchBook's research director Kyle Sanford explains: “Investors are being more selective in capital placement, concentrating it in the AI sector.”
Mega-Rounds and Capital Concentration
Mega-rounds (of $500 million or more) continue to set the agenda. In addition to the gigantic rounds for Anthropic and xAI, attention has turned to investments in Mistral AI ($2 billion), Cerebras Systems ($1.1 billion), and Periodic Labs ($300 million). According to Crunchbase, 18 companies captured one-third of all venture investments in 2025, which enhances market concentration and raises the entry barrier for new players. Capital is primarily directed towards late-stage rounds, where rising valuations allow funds to rapidly increase their assets.
Among the notable deals of the week:
- Cerebras Systems, $1.1 billion. The AI processor developer raised Series G funding at an $8.1 billion valuation, with Fidelity and Atreides Management as investors.
- Periodic Labs, $300 million. This new Silicon Valley startup is creating large language models for scientific research and received funding from Andreessen Horowitz, Felicis, DST, NVentures, and Accel.
- Vercel, $300 million. The company providing tools and infrastructure for building AI-native web applications closed Series F at a $9.3 billion valuation, previously servicing projects from OpenAI and PayPal.
- Supabase, $100 million. The PostgreSQL platform secured investments from Accel and Peak XV at a $5 billion valuation, highlighting investor interest in open database development.
- DualEntry, $90 million. The AI-native service for automating accounting raised a Series A round led by Lightspeed and Khosla, promising to automate 90% of financial tasks.
These rounds demonstrate that investors are willing to fund both deep-tech platforms (Cerebras) and infrastructure solutions for developers and businesses (Vercel, Supabase, DualEntry).
Sectors: Hardware, Biotech, and Fintech
Although AI remains a focal point, funds are also being distributed across other sectors. According to Crunchbase, hardware companies attracted $16.2 billion in the third quarter, while healthcare and biotech received $15.8 billion. Among the standout deals:
- Crystalys Therapeutics, $205 million. The biopharmaceutical company from San Diego raised Series A to develop treatments for gout.
- Star Therapeutics, $125 million. The antibody developer for treating blood clotting disorders closed a Series D round with participation from Sanofi Ventures and Viking Global Investors.
- Eve, $103 million. The legal firm platform received Series B financing from Spark Capital and Andreessen Horowitz, representing another example of AI application in the corporate sector.
- Light (Denmark), €25 million. The fintech platform integrating AI for accounting and financial management received investments from Balderton, Atomico, and others, reporting a 30-fold growth and an 84% reduction in time spent on financial operations.
Financial and legal services are actively integrating AI, making them attractive to investors. At the same time, biotech is demonstrating a steady demand for capital due to the application of machine learning in drug development.
Revival of IPOs and M&A Deals
Amidst the capital market revival, investors are witnessing increased activity in exits. At the end of the third quarter, 16 venture IPOs were conducted, each worth over $1 billion; among the public debuts were Chery Automobile, Figma, Klarna, and Netskope. The M&A market sentiment has also improved: OpenAI announced the acquisition of the A/B testing platform Statsig, and Workday acquired the AI startup Sana to integrate generative models into its HR products. Collectively, this signifies a reestablishment of exit opportunities for investors, which is particularly crucial amid a high volume of late-stage rounds.
Institutional Changes: Spin-Outs and New Funds
The venture ecosystem is experiencing transformations not only in funding but also in management structures. Alphabet announced that its early-stage AI division, Gradient Ventures, is forming an independent management company, Grdnt LLC. This decision stems from many AI startups’ reluctance to accept funding from corporate venture funds; similar spin-outs have been executed previously by Axa and Uniqa, while JetBlue sold its venture subsidiary, SKY VC. This trend indicates a desire among investors for more freedom and flexibility.
On a regional level, Russia and the CIS are launching their own initiatives. In Tatarstan, the venture fund New Chemical Industry (NCI) has been established with a capital of 4–6 billion rubles, which will invest in small-tonnage chemistry to reduce import dependency. The management of the fund is carried out by the Investment and Venture Fund of Tatarstan in collaboration with the Moscow company "Perspektiva." The expected return is a three-fold increase in project value over 3 to 5 years. The fund demonstrates the growth of national technological sovereignty and interest in deep tech.
News Digest: Major Rounds of the Week
In addition to the mentioned mega-deals, the market has also seen other investment news:
- Cartography Biosciences, $67 million. The US startup developed an antibody search platform using machine learning and attracted Series B funding with participation from Pfizer Ventures, LG Corp, and Amgen Ventures; funds will go towards clinical trials for an oncology drug.
- Platformeco, 100 million rubles. The Russian developer of a platform for integrations and API management received investments from KAMA FLOW, which will help expand its range of solutions for AI agents and scale its business in the Russian market.
- Piklema Group, 1 billion rubles. A joint fund between KAMA FLOW and OSNOVA Capital invested in a developer of digital solutions for automating the mining industry, supporting a program for developing high-tech projects worth 10 billion rubles.
- Fetcherr, $42 million. The Israeli startup using generative AI for predicting airline ticket prices secured Series C funding from Salesforce Ventures and is expanding its platform to other industries.
- DualEntry and Supabase. We have previously talked about these rounds, but it is worth noting that the total funding for Supabase has surpassed $500 million, and DualEntry emerged from stealth less than 18 months ago and could potentially become a leader in the automated accounting segment.
Private investments continue to flow into more niche directions, including cybersecurity (CyberCube, $180 million), blockchain (Flying Tulip, $200 million), and enterprise software. All of this confirms the thesis of diversification of growth sources.
Russia and CIS: Investment Growth and New Opportunities
The domestic venture capital market is demonstrating moderate growth after several challenging years. According to KAMA FLOW research, investments in Russian technology companies in the first half of 2025 increased by 81% to $83 million, although the number of deals decreased by 29%. The average check rose to $1.4 million, while the share of business angels in investment volume fell from 48% to 7%, indicating a shift of capital towards professional funds and mature projects. More than 64% of funded companies operate in IT/AI, half of which are integrating artificial intelligence into their products; growing interest is noted in areas of corporate software, industrial digitalization, telemedicine, and industrial AI.
The demand for technological solutions is confirmed by events like the Moscow Startup Summit. At the beginning of October, 4,000 participants from 25 countries attended pitch sessions and an innovation exhibition organized by the Moscow government and Sberbank. Following the demo day of the international accelerator Sber500, startups received offers totaling over 1.2 billion rubles from angel investors, funds, and clubs. Out of 1,900 applications, 30 teams advanced to the finals; about 70% of these utilized generative AI, and 48% were classified as deep-tech projects, including developments in biomedicine, industrial robotics, corporate software, and construction. This statistics underscores that Russian startups are quickly adapting to global trends.
The strengthening of the ecosystem is also being facilitated by new institutions: in addition to the NCI fund in Tatarstan, reforms in regional accelerators are underway, and large corporations are launching their own venture programs. However, analysts caution that amid high rates and a limited secondary market, startups should prepare for longer periods of return on investment and focus on real cash flows.
Conclusion: Balancing Opportunities and Risks
The date of October 7, 2025, illustrates both record volumes and caution. The world of AI continues to experience a historic influx of capital, however, the market is becoming increasingly polarized: large players are securing the biggest checks, while younger companies struggle for investor attention. Specific sectors—biotech, hardware, and enterprise software—show a steady demand for innovations. Exits via IPOs and M&A, as well as spin-outs from corporate funds, add confidence that the ecosystem is gradually recovering.
For investors from Russia and the CIS, this period opens unique opportunities: despite the rise in average check sizes and a decline in the number of deals, the market is actively supported by government initiatives and is seeking projects at the intersection of AI, industry, and chemistry. Quality expertise, a focus on generative technologies, and international collaborations (e.g., at the Moscow Startup Summit) will enable local participants to compete on a global scale. The main challenge remains risk assessment and developing a strategy against the backdrop of increasing player consolidation and tightening financing conditions.
