Current News in Startups and Venture Capital as of December 28, 2025: The Return of Mega Funds, AI Boom, IPO Market Revival, Crypto Industry Resurgence, and Wave of Large M&A Transactions. A Comprehensive Overview of Key Trends for Venture Investors and Funds.
By the end of 2025, the global venture capital market has confidently recovered from a prolonged slump. Investors worldwide are once again actively funding tech startups: multimillion-dollar deals are being closed, and IPO plans for promising companies are back in the spotlight. Major venture funds and corporations are returning with record investment programs, and governments in various countries are increasing support for innovative businesses. The influx of private capital is providing young companies with the liquidity they need for growth and scaling.
Venture activity is spreading across all regions. The U.S. continues to lead with colossal investments in the artificial intelligence sector. In the Middle East, the volume of startup investments has soared thanks to generous funding from sovereign wealth funds. In Europe, a significant shift has occurred: Germany has surpassed the UK in venture deal volume for the first time in a decade, reinforcing the positions of continental hubs. India, Southeast Asia, and other rapidly developing markets are attracting record capital amid cautious investor sentiment in China, driven by regulatory risks.
Nevertheless, China is making new efforts to stimulate innovation: national and several regional venture funds worth tens of billions of yuan have been launched to invest in "hard tech," and IPO regulations for space companies have been relaxed. The startup ecosystems in Africa and Latin America are also gaining momentum—these regions have seen the emergence of their first "unicorns," underscoring the truly global nature of the current venture uptick. Russia and the CIS countries are striving to keep pace despite external constraints: new funds and accelerators are being launched in the region with support from the government and corporations to integrate local projects into global trends. A new global venture boom is forming, even as investors continue to approach deals selectively and cautiously.
Below are the key events and trends defining the venture market landscape as of December 28, 2025:
- Return of Mega Funds and Large Investors. Major venture players are forming unprecedentedly large funds and ramping up investments, once again filling the ecosystem with liquidity and enhancing risk appetite.
- Record Funding Rounds and a New Wave of "Unicorns" in AI. Unprecedented investments in artificial intelligence are raising startup valuations to unseen heights, especially in the AI segment, leading to the emergence of numerous new "unicorns."
- Revival of the IPO Market. Successful public offerings by tech companies and an increase in new applications confirm that the "window of opportunity" for exits remains open.
- Renaissance of Crypto Startups. The rise of the digital assets market has revived investor interest in blockchain projects, bolstering capital inflow into the crypto industry.
- Defense and Aerospace Technologies Attract Capital. Geopolitical factors are stimulating investments in military technologies, space projects, and robotics.
- Diversification of Sector Focus: Fintech, Climate, and Biotech on the Rise. Venture capital is directed not only to AI but also to fintech, green technologies, biotechnology, and other promising sectors, broadening market horizons.
- Wave of Consolidation and M&A Deals. High startup valuations and intense competition are prompting a new wave of mergers and acquisitions, opening additional opportunities for exits and accelerated company growth.
- Global Expansion of Venture Capital. The investment boom is transcending traditional hubs - a significant inflow of capital is observed in the Middle East, South Asia, Africa, and Latin America, where new technology hubs are forming.
- Local Focus: Russia and the CIS. Despite limitations, new funds and initiatives for developing local startup ecosystems are emerging in the region, signaling a gradual recovery of venture activity.
Return of Mega Funds: Big Money Back in the Market
The largest investment players are triumphantly returning to the venture scene, heralding a new surge in risk appetite. The Japanese conglomerate SoftBank is experiencing its own "renaissance," once again making large-scale bets on tech projects in the AI sector. Its Vision Fund III, with a size of around $40 billion, is actively investing in promising directions, and the company is reorganizing its portfolio for new AI initiatives: for instance, SoftBank completely sold its stake in Nvidia for about $6 billion to free up capital for investing in artificial intelligence. Moreover, SoftBank is effectively going all-in on the AI segment, planning to invest around $20 billion in one of the industry leaders – OpenAI.
At the same time, leading Silicon Valley funds have accumulated unprecedented reserves of dry powder—hundreds of billions of dollars ready to be deployed as the market strengthens. For example, venture firm Andreessen Horowitz (a16z) is raising a new mega fund of about $20 billion, primarily targeting later-stage American AI startups. Sovereign funds from Persian Gulf countries have also stepped up: governments in the region are pouring billions into innovative programs, creating powerful regional tech hubs. Several well-known investment firms, which had previously taken a pause, are reentering the arena with big deals. For instance, after a period of caution, Tiger Global Fund announced a new fund of $2.2 billion (albeit smaller than its previous massive funds), promising a more selective approach to investing. The return of "big money" is already palpable: the ecosystem is saturated with liquidity, competition for the best deals is intensifying, and the industry is receiving a much-needed boost of confidence regarding future capital inflows.
Record AI Rounds and New "Unicorns": The AI Investment Boom
The artificial intelligence sector remains the primary engine of the current venture upturn, setting new records for funding volumes. Investors are eager to position themselves in AI market leaders, directing colossal amounts into the most promising companies. For example, Elon Musk's startup xAI attracted about $10 billion in investments, while OpenAI raised $8.3 billion, raising its valuation to approximately $300 billion. Both rounds were significantly oversubscribed, highlighting the frenzy surrounding leading AI companies.
The influx of venture capital is flowing not only into applied AI services but also into critical infrastructure for them. Investors are willing to finance even the metaphorical "shovels and pickaxes" of the new digital era—from manufacturing specialized chips and cloud platforms to optimizing energy consumption in data centers. The total volume of investments in the AI sector in 2025 is estimated to have exceeded $120 billion, with more than half of all venture funds during the year allocated to AI projects. The explosive rise has created dozens of new "unicorns" around the world—companies valued at over $1 billion are appearing in many countries. While experts warn of the risk of overheating in this sector, investor appetite for AI startups remains strong.
IPO Market Revives: A Window of Opportunity for Exits is Open
The global market for initial public offerings has confidently revived after a prolonged lull and continues to gain momentum. In Asia, a new wave of IPOs has been launched by Hong Kong: in recent weeks, several major tech companies have gone public there, collectively raising multibillion-dollar investments—confirming investors' readiness to actively participate in IPOs. In North America and Europe, the situation is also improving: the number of public offerings in the U.S. in 2025 has increased by more than 60% compared to the previous year, returning to pre-pandemic levels. Several highly valued startups successfully debuted on the stock market: for instance, the fintech "unicorn" Chime saw its stock rise by about 30% on the first trading day, while the design platform Figma raised around $1.2 billion during its IPO, tripling its market capitalization relative to its placement price. Following them, new high-profile exits are on the horizon—among the most anticipated candidates are payment giant Stripe and other well-known "unicorns" eager to take advantage of the favorable window.
The revival of life in the public market is critically important for the venture ecosystem. Successful IPOs allow funds to realize profitable exits and channel freed-up capital into new projects, closing the investment cycle. The prolonged "window of opportunity" encourages more startups to consider going public. Moreover, an unprecedented deal looms on the horizon: SpaceX is preparing for an IPO and reportedly plans to raise $25-30 billion at a valuation of around $1 trillion. If this record listing takes place in 2026, it could open the floodgates for a new wave of large public offerings and firmly establish the recovery of the IPO market.
Crypto Startups Experience a Renaissance
After a deep slump, the crypto market has again entered a growth phase in 2025, reviving venture investors' interest in blockchain startups. Capital is once again flowing into the crypto industry—from infrastructure solutions and crypto exchanges to DeFi platforms and Web3 projects. Major specialized funds have resumed activity in this segment, and new crypto startups are attracting significant funding rounds against the backdrop of rising digital asset prices. Bitcoin, for example, is nearing its historical mark of $90,000 by the end of the year, bolstering investor confidence in the prospects of crypto assets. Strategic interest from corporations toward this market is also returning: for instance, South Korean crypto exchange Upbit was acquired by financial conglomerate Naver for about $10 billion—one of the largest deals of the year in the crypto industry. Overall, the new wave of interest in blockchain projects indicates that crypto startups are experiencing a sort of renaissance amid improved market conditions.
Defense and Aerospace Technologies Attract Capital
The geopolitical landscape and rising defense budgets are stimulating capital inflow into military and aerospace technologies. Startups creating innovations for the defense sector—from drones and cybersecurity to artificial intelligence systems for the military—are receiving support from both governmental institutions and major private investors. Commercial space projects are also receiving active funding: the development of satellite constellations, orbital services, and new rocket technologies is attracting significant venture capital. In China, for example, easing IPO regulations for space companies is aimed at facilitating capital attraction in this sector. In addition to direct funding for startups, tech giants are keen to keep pace: Google has agreed to acquire Israeli cybersecurity startup Wiz for a record $32 billion—this deal marks the largest in the history of the Israeli tech industry. The willingness of market leaders to spend tens of billions on key technologies underscores the strategic significance of the defense-tech sector.
Diversification of Investments: Fintech, Climate, and Biotech on the Rise
In 2025, venture investments are distributed across an increasingly broad array of sectors and are no longer concentrated solely around artificial intelligence. Following a downturn in previous years, fintech has revived: large funding rounds are taking place in the U.S., Europe, and emerging markets, stimulating the growth of new digital financial services. Simultaneously, investors are showing heightened interest in climate technologies and green energy. Projects in renewable energy, eco-friendly materials, and agri-tech are receiving record funding on the wave of the global sustainable development trend. For example, the Swiss climate startup Climeworks recently raised $162 million for the development of CO2 capture technologies, bringing the total investment in the company to over $1 billion.
Interest in biotechnology is also returning. The emergence of breakthrough medical developments is once again attracting significant capital: one startup, developing an innovative obesity treatment, raised around $600 million in a single round, rekindling investor interest in biomedical innovations. Even previously "frozen" projects in crypto technologies are beginning to step into the light (as mentioned earlier, the crypto market is reviving). This diversification of sector focus shows that investors are seeking new growth points beyond the overheated AI segment, making the entire startup ecosystem more balanced and resilient.
Consolidation and M&A Deals: Increasing Player Size
High company valuations and fierce market competition are pushing the startup ecosystem toward consolidation. Major mergers and acquisitions are again coming to the forefront, altering the balance of power in the industry. The year 2025 has seen a record number of large acquisitions of "unicorn" startups: 36 deals worth approximately $67 billion were completed (in comparison, 2024 had 22 deals worth $7 billion). The largest deals of the year include:
- Google's acquisition of Israeli cybersecurity startup Wiz for $32 billion;
- Naver (South Korea) acquiring the cryptocurrency exchange operator Upbit (Dunamu) for $10.3 billion;
- Palo Alto Networks' acquisition of the cloud observability platform Chronosphere for $3.4 billion.
Such mega deals demonstrate that even industry leaders are willing to spend tens of billions to keep pace in the technological race. Overall, the renewed wave of acquisitions reflects the maturation of the industry: mature startups are merging with one another or becoming targets for corporations, and venture funds are achieving the long-awaited profitable exits. Consolidation enhances the ecosystem's efficiency, allowing companies to pool resources for accelerated growth and global expansion while providing investors with improved returns through major successful exits.
Global Expansion of Venture Capital: Boom Spanning New Regions
The venture boom of 2025 is characterized by an ever-wider geographic scope. Beyond traditional technology centers (the U.S., Western Europe, China), significant capital inflow is observed in new markets worldwide. Countries in the Persian Gulf—Saudi Arabia, UAE, and others—are investing billions to create local tech parks and startup ecosystems in the Middle East. India and Southeast Asia are experiencing a true renaissance in the startup scene, attracting record levels of venture capital and producing new "unicorns." Rapidly growing tech companies are also emerging in Africa and Latin America—some of them have reached valuations above $1 billion for the first time, cementing their status as global players.
Thus, venture capital is becoming more global than ever. Promising projects can now secure funding regardless of location, provided they have the potential for scaling. For investors, this opens up new horizons for seeking high-yield opportunities around the world while diversifying risks across countries and regions. The spread of the venture boom to new territories also facilitates the exchange of expertise and talent, making the global startup ecosystem more interconnected.
Russia and the CIS: Local Focus Amid Global Trends
Despite sanctions and other restrictions, startup activity in Russia and neighboring countries is reviving. In 2025, new venture funds totaling tens of billions of rubles have been launched to support early-stage technology projects. Large corporations are creating their accelerators and venture divisions, while government programs are assisting startups in obtaining grants and investments. For instance, following Moscow's "Innovators Academy" program, over 1 billion rubles have been attracted to local tech projects.
While the scale of venture deals in Russia and the CIS still significantly lags behind global figures, interest in local projects is gradually returning. Partial easing of restrictions opens up investment opportunities from friendly countries, partially compensating for the outflow of Western capital. Some companies are contemplating going public as market conditions improve: notably, a regional foodtech startup recently secured funding at a multibillion-dollar valuation and is preparing for an IPO—an indication of the growing ambitions of local players. New initiatives are designed to provide additional momentum to the local startup ecosystem and align its development with global trends.
Cautious Optimism: The Venture Market Looks to the Future
As 2025 comes to a close, moderately optimistic sentiments are taking hold in the venture industry. Record funding rounds and successful IPOs have convincingly shown that the downturn period is behind us. However, market participants remain cautious. Investors are paying increased attention to the quality of projects and the sustainability of business models, striving to avoid unwarranted hype. The focus of the new upturn is not on racing for the highest valuations, but on searching for truly promising ideas capable of generating profits and transforming industries.
Even the largest funds are advocating for a measured approach. It is noted that valuations of certain startups remain very high and are not always supported by fundamental indicators. Aware of the risk of overheating (especially in the AI segment), the venture community intends to proceed with caution, combining bold investment with careful analysis. Thus, the new growth phase is built on a more solid foundation: capital is directed towards quality projects, and the industry looks to the future with cautious optimism, aiming for long-term sustainable growth.
