Fresh Startup and Venture Investment News for Thursday, November 20, 2025: The Return of Megafunds, Giant AI Rounds, the Resurgence of IPOs, a Wave of M&A, Renewed Interest in Crypto Startups, and New Unicorns. A Comprehensive Overview for Venture Investors and Funds.
By the end of November 2025, the global venture market is showcasing a robust recovery following the declines of recent years. According to industry analysis, in the third quarter of 2025, the total volume of venture capital investments reached approximately $97 billion – nearly 38% higher than the previous year and the best quarterly figure since 2021. The prolonged period of "venture winter" from 2022 to 2023 is now behind us, and the influx of private capital into tech startups has significantly accelerated. Major funding rounds and the launch of new megafunds signal a renewed appetite for risk among investors, although they remain selective and cautious in their investments.
The growth in venture activity encompasses almost all regions of the world. The U.S. maintains its leadership (especially in the rapidly evolving AI segment), while investment volumes in the Middle East have nearly doubled year-over-year. In Europe, for the first time in a decade, Germany has surpassed the UK in total venture capital. Asia sees a booming rise in India and Southeast Asia, offsetting a relative decline in China. Tech hubs are also forming in Africa and Latin America. The startup ecosystems in Russia and the CIS countries are endeavoring to keep pace despite external restrictions. In summary, the global market is gaining strength, although investors continue to prioritize the most promising and resilient projects.
- The Return of Megafunds and Large Capital. Leading venture players are forming record funds and re-injecting significant resources into the market, fueling the appetite for risk.
- Record Rounds in AI and a New Generation of Unicorns. Megarounds of funding in artificial intelligence are inflating company valuations and spawning a wave of new "unicorns" – startups valued over $1 billion.
- The Resurgence of the IPO Market. Successful public offerings of tech companies and new listing applications confirm that the long-awaited "window" for exits has opened again.
- Sector Diversification. Venture capital is funneling not only into AI but also into fintech, climate projects, biotechnology, space, and defense developments – the investment horizon is expanding.
- A Wave of Consolidation and M&A. Major mergers and acquisitions are reshaping the industry landscape, creating new opportunities for profitable exits and accelerated company growth.
- Renewed Interest in Crypto Startups. After a lengthy "crypto winter," blockchain projects are once again attracting substantial funding and attention from venture funds and corporations.
- Local Focus. New funds and programs are being launched in Russia and neighboring countries to support local startups, gradually attracting investors' attention despite geopolitical constraints.
The Return of Megafunds: Big Money Back in the Market
The largest investment funds and institutional players are returning to the venture arena, indicating a new wave of interest in risky investments. Following a decline in VC fundraising during 2022–2024, leading firms are resuming capital attraction and launching megafunds, showcasing confidence in market prospects. For instance, the Japanese conglomerate SoftBank is forming a third Vision Fund of around $40 billion, focusing on advanced technologies (including AI and robotics). In the U.S., Andreessen Horowitz is raising a record-sized venture fund of approximately $20 billion, targeting investments in late rounds of AI startups. Sovereign funds from Gulf countries are also becoming active, investing billions of dollars in high-tech projects and developing their tech hubs.
Simultaneously, dozens of new venture funds are emerging in many regions, attracting significant institutional capital for investments in technology companies. The return of such large "megafunds" means that startups have greater opportunities to secure funding for growth, and competition among investors for the best deals is significantly intensifying.
Record Investments in AI: A New Wave of Unicorns
The artificial intelligence sector has emerged as the primary driver of the current venture boom, displaying record levels of funding. Approximately half of all venture capital raised in 2025 is estimated to go to AI companies. Total global investments in artificial intelligence this year may exceed $200 billion – an unprecedented level for the industry. This surge is attributed to AI technologies promising to dramatically enhance efficiency across numerous sectors – from industrial automation and transportation to personal digital assistants – thereby opening up multi-trillion-dollar new markets. Despite concerns about market overheating, funds continue to ramp up investments, fearing they might miss the next technological revolution.
This unprecedented influx of capital is accompanied by its concentration among leaders. The lion's share of funds is flowing into a select few companies poised to become defining players in the new AI era. For example, the California-based startup OpenAI has raised a total of around $13 billion in funding, French company Mistral AI has received approximately $2 billion, and Jeff Bezos' new initiative Project Prometheus launches with capital of $6.2 billion. Such megafunding rounds sharply inflate these companies' valuations, creating a new cohort of "super-unicorns." While such deals may inflate costs and fuel discussions of a bubble, they also concentrate vast resources on the most promising directions, laying the groundwork for future breakthroughs. In recent weeks, numerous companies worldwide have announced significant funding rounds, including British platform Synthesia (which secured $200 million at a valuation of ~$4 billion to enhance AI-based video generation technology) and American cybersecurity developer Armis (which obtained $435 million in a pre-IPO round at a valuation of $6.1 billion).
The Resurgence of the IPO Market: The Window for Exits is Open Again
Against the backdrop of rising valuations and capital influx, tech companies are once again actively preparing to go public. Following nearly two years of quiet, there is a surge in IPOs as a key exit mechanism for venture investors. A series of successful public offerings in 2025 has confirmed the reopening of the "window of opportunity" for exits. For instance, in the U.S., the number of IPOs has already surpassed 300 this year, marking a significant increase compared to 2024, with shares of several debutants demonstrating strong growth. Positive signals are also emerging in developing markets: the Indian educational unicorn PhysicsWallah went public in November with an impressive first-day surge of over 30%, serving as an encouraging indicator for the entire edtech sector.
The success of recent offerings restores investors' confidence in the market's ability to absorb new tech issuers. Following these initial "canaries in the coal mine," several large private companies have announced IPO plans, eager to capitalize on the favorable market conditions. Even giants like OpenAI are considering a public offering in 2026 with a potential valuation in the hundreds of billions of dollars – if this occurs, it will be an unprecedented event for the venture industry. Overall, the revival of the IPO market expands the horizons for exits, easing the capital return for venture funds and stimulating a new cycle of investment in startups.
Sector Diversification: The Investment Horizon Expands
In 2025, venture investments span a much broader range of areas, no longer limited to artificial intelligence alone. After the downturn of last year, the fintech sector has notably revived: new fintech startups are attracting significant rounds of funding, particularly in payment systems and decentralized finance. Active growth is also observed in climate and "green" technologies amid global demand for sustainability – investors are pouring funds into projects ranging from renewable energy to carbon capture technologies.
Additionally, interest in biotechnology and medtech is returning: significant funds, particularly in Europe, are establishing specialized funds to support pharmaceutical and medical startups. Space technologies and defense projects are also receiving increased attention – geopolitical factors and breakthroughs in private space travel are stimulating investments in satellite constellations, rocket building, drone systems, and defense AI solutions. Thus, the investment focus of venture capital has significantly broadened, enhancing market resilience – even if the hype surrounding AI diminishes somewhat, other sectors are poised to carry the baton of innovation.
A Wave of Consolidation and M&A: The Industry is Reshaping
High valuations of startups and intensifying competition are prompting companies to seek synergy through mergers and acquisitions. In 2025, a new wave of consolidation is emerging: large tech corporations are actively pursuing acquisitions again, and mature startups are merging to strengthen their market positions. Such deals are reshaping the industry landscape, enabling the establishment of more sustainable business models and providing investors with the long-awaited exits.
In recent months, several notable M&A deals have garnered the attention of the venture community. For example, American IT giant Cisco announced the acquisition of an AI translation startup, integrating new technologies into its products. Other corporations are also not lagging: strategic investors from the finance and industrial sectors are acquiring promising fintech and IoT companies, seeking access to their developments and customer bases. Meanwhile, some unicorns prefer to merge with each other or sell to major players to collaboratively overcome rising costs and accelerate scaling. For venture funds, this wave of consolidation opens new exit pathways – successful M&A often yields significant profits and confirms the viability of invested business models.
Renewed Interest in Crypto Startups: The Market Revives After the "Crypto Winter"
Following a prolonged decline in interest in cryptocurrencies and blockchain projects – the so-called "crypto winter" – the situation began to change in 2025. Venture investment in crypto startups has significantly increased: estimates suggest that the total funding for blockchain projects this year has exceeded $20 billion, more than double the amount in 2024. Investors are once again displaying interest in infrastructure solutions for the crypto market, decentralized finance (DeFi), blockchain platforms, and Web3 applications.
Major Silicon Valley funds and even conservative players are returning to this segment. In recent weeks, several crypto and DeFi startups have attracted funding rounds from prominent investors. For instance, the venture arm of broker Robinhood and Peter Thiel's Founders Fund participated in financing promising blockchain platforms. By the end of the year, the volume of venture investments in cryptocurrency projects may approach a record-setting $25 billion. This signifies a sort of renaissance for the industry: following a market cleansing from speculation, the focus has shifted toward real use cases for blockchain, which is attracting "smart money." Consequently, a number of crypto startups are once again vying for unicorn status, with some exchange and infrastructure projects already reaching billion-dollar valuations.
Local Focus: Russia and the CIS Countries
Despite global restrictions, active steps are being taken in Russia and neighboring countries to develop local startup ecosystems. Government and private institutions are launching new funds and initiatives intended to support early-stage tech projects. Specifically, the authorities in St. Petersburg recently discussed creating a city venture fund to finance promising high-tech companies, similar to what has been accomplished in the Republic of Tatarstan with a fund capitalized at 15 billion rubles. Moreover, large corporations and banks in the region are increasingly acting as investors and mentors for startups, developing corporate accelerators and venture divisions.
In addition to government efforts, the entrepreneurial community is becoming notably more dynamic. International technology forums and summits (e.g., the recent Moscow AI Journey 2025) are being held to bring attention to local innovations and establish bridges between Russian developers and global investors. All this is unfolding against the backdrop of a striving for technological sovereignty – local startups are adapting to new conditions and seeking niches where they can compete globally. Gradually, investors' interest in the region is returning: the first cases of successful funding rounds and exits are appearing even under the current challenging conditions. Thus, the local market is striving to keep pace with global trends, laying the foundation for future growth and integration into the world startup ecosystem.
