Startup News, Venture Investments, Investment Deals, Global Venture Market, AI Startups, Startup Financing, Megarounds
By mid-November 2025, the global venture capital market is experiencing a robust rebound after several years of decline. Investors worldwide are once again actively financing technology startups: record deals are being concluded, IPO plans are back on the agenda, and the largest funds are triumphantly reentering the market with substantial investments.
Global Venture Market Upswing
Recent data confirms the revival: in the third quarter of 2025, the global volume of venture investments reached approximately $97 billion, marking a 38% increase compared to the previous year and slightly above the previous quarter's results. This is the best quarterly performance since 2021 and the fourth consecutive quarter where total investments have surpassed $90 billion. Following the "venture winter" of 2022-2023, startup funding has consistently grown for four reporting periods in a row, reflecting a return of investor confidence. Megarounds in the artificial intelligence (AI) sector have significantly contributed to this growth; however, the upswing is observed across all stages, particularly with late-stage investments increasing rapidly. Approximately two-thirds of all venture investments in the last quarter were directed towards companies in the U.S., but activity is also rising in Europe, Asia, the Middle East, and other regions, highlighting the global nature of the upswing. Venture activity is growing virtually in all regions worldwide. The U.S. continues to lead (with the AI segment booming), while investment volumes in the Middle East nearly doubled over the year. In Europe, for the first time in a decade, Germany surpassed the U.K. in total venture capital. In Latin America, Mexico outpaced Brazil in raised funds. India, Southeast Asia, and Gulf countries are attracting record capital flows amid a relative decline in activity in China. The startup scenes in Russia and neighboring countries are also keeping pace: new funds and programs for developing local ecosystems are emerging in the region despite external limitations.
The Return of Mega Funds
Major venture players are once again raising record funds, reaffirming their confidence in the market's prospects. SoftBank has launched a new Vision Fund of approximately $40 billion, focused on AI and robotics, while Sequoia Capital announced funds of $950 million for late-stage and early-stage startups. Sovereign funds from the Gulf are also becoming active, directing billions of dollars into technology companies globally. The emergence of such mega-structures promises startups greater opportunities for capital influx and heralds a new era of technological growth.
Record Investments in AI and a New Wave of Unicorns
The artificial intelligence sector remains the primary driver of the current venture uptrend, demonstrating unprecedented funding volumes. Since the beginning of 2025, AI startups have collectively raised over $160 billion just in the U.S., accounting for approximately two-thirds of all venture fund investments in the country. Analysts estimate that by the end of the year, global investments in AI companies could exceed $200 billion — an unprecedented level for the industry. The aggregate valuation of the ten largest AI startups (including OpenAI, Anthropic, xAI, and others) has approached a staggering $1 trillion.
The influx of capital into AI is accompanied by the emergence of numerous new "unicorns" and a high concentration of investments. A significant portion of funds is directed towards a narrow circle of industry leaders that are securing the largest funding rounds. Approximately 70% of all venture investments in U.S. startups lately have been concentrated in just a few of the most sought-after companies.
For instance, French startup Mistral AI set a record for Europe by attracting around $2 billion, while American company OpenAI secured $13 billion in a single tranche of funding. Recently, Elon Musk's startup xAI garnered investor support of $15 billion (valuation ~ $200 billion), further fueling the race for AI megara rounds. Such colossal deals inflate company valuations to astronomical levels. However, the venture market benefits from this surge of activity: capital and talent are concentrating around promising directions, promising groundbreaking innovations in the future, even if some funded projects ultimately do not meet expectations.
In recent weeks, several startups announced large funding rounds, confirming the return of "big checks" to the market:
- xAI (USA) — Elon Musk's startup raised $15 billion (valuation ~ $200 billion) for the development of advanced AI models and the procurement of graphics processors for training neural networks.
- Cursor (USA) — secured $2.3 billion in a Series D funding round at a valuation of $29.3 billion to expand its AI assistant platform for programming.
- CHAOS Industries (USA) — raised $510 million in funding to scale the production of next-generation autonomous defense systems.
Revival of IPOs and Exit Prospects
Against the backdrop of rising valuations and capital inflows, technology companies are once again eyeing public markets. After a lull over the past two years, a revival of IPOs has emerged as a long-awaited avenue for venture investors to exit. Earlier in 2025, several large unicorn startups successfully went public: for instance, stablecoin issuer Circle conducted an IPO with a valuation of approximately $7 billion, while cryptocurrency exchange Bullish raised ~$1.1 billion through its offering, reaching a market capitalization of around $5–6 billion. These debuts showcased that the market has regained its appetite for new public offerings, especially in the fintech and cryptocurrency segments.
Now, major players are eager to capitalize on the newly opened "window" of opportunities. According to insider information, ChatGPT creator OpenAI is considering an initial public offering as early as 2026, with a potential valuation of up to $1 trillion. In the blockchain industry, wallet developer ConsenSys has hired JPMorgan and Goldman Sachs to prepare for an IPO slated for 2026. If successful, it would mark the first public offering of such a large company from the Ethereum ecosystem — a landmark event for the entire crypto industry.
Improved market conditions and gradually clarifying regulatory requirements are also instilling confidence in startups planning listings. Consequently, the largest private companies are again viewing the public market as a viable opportunity for capital acquisition and providing liquidity to investors. Experts predict that over the next couple of years, the number of high-profile tech IPOs will increase as the "window" for exits remains open and market multipliers favor high valuations.
Beyond AI: Healthcare, Climate, Space, and Defense
Despite the dominance of AI, significant funding is also being directed to other high-tech sectors. For instance, healthcare and biotechnology attracted around $15 billion in venture capital in the third quarter of 2025 (ranking third after AI and IT infrastructure). The synergy of technology and medicine is evident in large rounds such as the genomic medicine project Fireworks AI, which raised $250 million for developing a platform at the intersection of AI and healthcare. Investors are also showing interest in climate and "green" innovations — from biodegradable materials made from algae to components for electric vehicles — although the scale of such deals still lags behind the gigantic rounds in AI.
Attention is also growing towards space, defense, and other hard-tech directions. In Europe, for instance, satellite startup EnduroSat raised over $100 million (with participation from funds like Google Ventures, Lux Capital, and others) to expand its production of small satellites in response to demand for affordable communication means in space. In general, deep-tech sectors are experiencing a surge: in 2025, manufacturers of robotics, semiconductors, and quantum computing systems collectively received funding in the tens of billions of dollars. While these volumes may not match the AI phenomenon, venture capital is becoming increasingly diversified — reducing the risk of overheating in individual niches and fostering balanced technological progress.
Consolidation and M&A: Megadeals Shape the Landscape
High valuations of startups and intense competition are fueling a new wave of consolidation in the industry. Major mergers and acquisitions (M&A) are once again coming to the forefront, reshaping the competitive landscape of the market. Strategic M&A helps corporations and investors accelerate growth, gain access to new technologies, or enter adjacent markets, while for venture funds, large acquisitions provide essential exits.
For example, in October, investment bank Goldman Sachs announced its acquisition of venture firm Industry Ventures for nearly $1 billion. This deal became one of the largest acquisitions in the venture sector, reflecting the growing interest of banking capital in technology and startup assets. Major tech corporations have also ramped up acquisitions, taking advantage of the stabilization of valuations: over the past year, several industry leaders have acquired promising startups to strengthen their positions in key areas (AI, cybersecurity, etc.). The wave of consolidation is also affecting the crypto industry: traditional financial companies are showing increased interest in acquiring blockchain startups. According to media reports, Mastercard is in talks to purchase several crypto projects (including infrastructure startup ZeroHash) for nearly $2 billion as it seeks to establish itself in the digital assets space. The activation of M&A — from banking investments in venture platforms to technological megadeals — indicates the "maturity" of the market and offers startups more options for successful exits and integration into larger businesses.
The Return of Interest in Crypto Startups
After a prolonged "crypto winter," the market for blockchain startups is reviving: in October 2025, funding for crypto startups reached a peak not seen in recent years. That month, projects raised several billion dollars in investments (over $20 billion since the beginning of the year). Leading venture funds (Sequoia Capital, Andreessen Horowitz, etc.) participated in the largest October rounds, signaling a return of confidence in the sector.
The rise in digital asset prices (with Bitcoin surpassing the historic threshold of $100,000 in November) and the gradual clarification of regulations are also fueling the interest of venture investors. Blockchain projects are once again attracting significant capital and attention from both funds and large corporations. This revival can essentially be termed the "renaissance" of crypto investments following a downturn, although market participants still display selectiveness and caution.
