Global Overview of Venture Investments and Startups as of October 23, 2025: Mega Rounds in AI, Boom in Defense Technologies, Return of Mega Funds, and Resurgence of the IPO Market.
By the end of October 2025, the global venture capital market is showing a steady rise after several years of decline. Investors worldwide are once again actively funding technology startups, with record deals being made and companies' IPO plans back in focus. Major players are returning to the arena with substantial investments, while governments across various countries are ramping up support for innovations. As a result, private capital is flooding back into the startup ecosystem, providing resources for a new phase of growth. According to industry analysts, the total volume of venture investments globally increased by nearly 40% year-over-year in the third quarter of 2025—a clear sign of a renewed appetite for risk.
Venture activity is rising across all regions. The United States continues to lead (especially in the AI segment), while in the Middle East, startup investment volumes have doubled compared to last year. In Europe, Germany has for the first time surpassed the United Kingdom in the number of venture deals. In Asia, while regulatory uncertainty maintains a relative downturn in China, India, Southeast Asia, and Gulf countries are attracting record capital. The investment boom is reaching new heights: amid the overall growth, new tech hubs are emerging in Africa and Latin America (for instance, Africa recently saw its largest investment of around $100 million in the electric mobility sector). The startup ecosystems in Russia and the CIS countries are also striving to keep pace despite external constraints. A global venture boom in early-stage investments is forming, although investors are still acting selectively and cautiously.
Below are the key events and trends shaping the venture capital landscape as of October 23, 2025:
- The Return of Mega Funds and Large Investors. Leading venture funds are raising unprecedented amounts of capital and sharply increasing their investments, flooding the market with liquidity and heightening the appetite for risk.
- Record Rounds in AI and a New Wave of Unicorns. Unprecedented investment sizes are driving startup valuations to unseen heights, particularly in the AI segment.
- Revitalization of the IPO Market. Successful public listings of tech companies and new applications for listings confirm that the long-awaited "window" for exits has reopened.
- A Boom in Defense Technologies. The geopolitical situation is stimulating increased interest in startups in the defense and security sectors, which are now at the forefront of the venture agenda.
- Diversification of Sector Focus. Venture capital is flowing not only into AI but also into fintech, climate projects, biotechnology, defense developments, and even crypto startups.
- A Wave of Consolidation and M&A Deals. New mergers, acquisitions, and strategic investments are reshaping the industry landscape, creating opportunities for exits and accelerated growth for companies.
- Local Focus: Russia and the CIS. Despite constraints, new funds and initiatives are being launched in the region to develop local startup ecosystems, attracting investor attention.
The Return of Mega Funds: Big Money Back in the Market
The largest investment players are triumphantly returning to the venture scene, marking a new surge in risk appetite. For instance, the American firm Andreessen Horowitz has announced the formation of a new mega fund of around $20 billion to invest in promising AI startups, while the Japanese conglomerate SoftBank is launching Vision Fund III, sized at approximately $40 billion, aimed at cutting-edge technologies. Sovereign funds from Gulf countries have also dramatically increased their activity, investing billions of dollars into technology projects and initiating government mega-programs to form their own tech hubs in the Middle East. Concurrently, dozens of new venture funds are being created worldwide, attracting significant institutional capital for investments in high-tech sectors.
The return of such "big money" from prominent Silicon Valley funds and global investors not only intensifies competition for the best deals but also instills confidence in the industry regarding the continued influx of capital. The American venture sector has amassed record reserves of uninvested capital ("dry powder")—hundreds of billions of dollars ready to be deployed as new opportunities arise. The influx of large funds saturates the market with liquidity, providing resources for large funding rounds and supporting the growth of valuations for promising companies.
Record Investments in AI and a New Wave of Unicorns
The field of artificial intelligence is driving the current venture upswing, showing unprecedented funding volumes. Investors around the world are eager to position themselves in leaders of the AI sector, directing colossal funds into the most promising projects. For instance, the xAI project (founded by Elon Musk) attracted about $10 billion in total, while the AI model developer OpenAI secured funding of approximately $8–9 billion at a company valuation of about $300 billion. Rumors are circulating that one of the companies creating infrastructure for AI is in talks for a multi-billion round at an extremely high valuation. This investment frenzy has spawned an entire wave of new "unicorns"—startups valued at over $1 billion.
The powerful influx of capital is rapidly driving valuations of young AI companies upward. Startups in the AI space are now reaching "unicorn" status at record speed, especially in segments of generative AI and associated infrastructure. Experts estimate that in 2025, total venture investments in AI startups will exceed $200 billion—around half of the entire global venture financing market. In developed countries, about 70% of all venture funds are currently concentrated in mega rounds ($100+ million), reflecting a tendency toward larger deals. While some analysts warn of overheating risks at early stages (where any project labeled as AI is assigned inflated valuations), the fear of missing out on the next technological revolution continues to fuel capital inflow. The appetite for AI projects among investors remains strong, and the artificial intelligence sector is experiencing unprecedented growth.
The IPO Market Awakens: A Window of Opportunity for Exits
The global primary public offering market for startups is emerging from a lull and gaining momentum. In recent months, a number of notable venture-backed companies have successfully gone public, achieving high valuations on the exchange. Investors are once again eager to acquire shares in tech newcomers, as evidenced by impressive debuts: for instance, software design developer Figma and fintech giant Circle successfully entered the public market, with their valuations increasing exponentially in the initial trading days. Throughout 2025, the total number of tech IPOs has significantly risen compared to last year, with more than a dozen unicorn startups being publicly listed in the third quarter, boasting a total market capitalization exceeding $90 billion at the time of listing.
Venture investors perceive these signals as confirmation that the long-awaited "liquidity window" for exits has indeed opened. Many companies that postponed their IPO plans during the downturn of 2022–2023 are now resuming their IPO plans and submitting applications to regulators. Among the anticipated major debuts are Swedish fintech unicorn Klarna, gearing up for a public offering with a valuation of around $14 billion, and American payment company Stripe, which the market expects to have one of the highest valuations among private tech firms. The success of new listings not only allows founders and funds to realize profits but also restores confidence that the venture cycle can once again conclude with planned exits. The window of opportunity for investment exits has reopened, facilitating the flow of capital into the next generations of startups.
A Boom in Defense Technologies: A New Venture Market Priority
Against the backdrop of geopolitical tensions, the niche of defense and military technologies is experiencing rapid growth. Venture investors are increasingly financing startups related to defense, security, and aerospace. In Europe, investments in defense startups have multiplied since the beginning of 2022; in just the first few months of 2025, companies in this sector attracted around €1.4 billion, significantly more than in previous periods. Increased interest is fueled by government contracts and the search for innovative solutions for the military—from unmanned drones to biotechnological sensors. American funds are similarly engaging: new players focused on military technologies have emerged in the U.S., while some large corporations (such as defense contractors) are launching their own venture units to scout promising developments.
The swift influx of capital into the defense-tech sector is establishing a new priority within the venture market. Startups that previously remained peripheral interests (military AI systems, robotics for the army, cybersecurity, etc.) are now moving to the forefront. Although some analysts warn that the enthusiasm surrounding defense technologies may reach a peak, while investors are willing to invest actively in this area considering the high demand from government clients and the relevance of these developments. The boom in defense startups showcases how quickly venture capital adapts to new global challenges, redirecting towards fields that promise significant demand growth.
Diversification of Investments: Not Only AI
In 2025, venture investments are encompassing an increasingly broader range of sectors and are no longer solely focused on artificial intelligence. Following the downturn of the previous year, funding is reviving in other segments of the technology market, making the current upswing more balanced. Funds are striving to diversify their portfolios, allocating capital to promising projects across various fields. Key areas drawing investor attention include:
- Fintech: new financial technology services and digital banks continue to receive significant investments against the backdrop of sustained demand for online services. Global investments in the fintech sector are once again measured in tens of billions of dollars, demonstrating a "second wind” for the industry after the downturn in 2022–2023.
- Climate and "Green" Projects: solutions in clean energy, emission reduction, and eco-technologies are attracting venture capital interest due to the priority on sustainable development (ESG). For example, a coalition of private venture firms led by Bill Gates' Breakthrough Energy Ventures has formed a new fund of around $300 million to finance climate startups and plans to make its first investments shortly.
- Biotechnology and Health: investments in drug development, genetic research, life extension technologies, and medical devices remain at high levels. Pharmaceutical giants and specialized funds are actively investing in biomedical and healthtech startups, hoping for breakthrough products and tremendous market potential. For instance, Finnish smart ring producer Oura attracted about $900 million at a valuation of $11 billion, highlighting investors' interest in health wearables.
- Cryptocurrencies and Blockchain: following a downturn in interest over recent years, crypto startups have re-emerged on the radar of venture investors. Stabilization of the digital assets market and progress in regulation have increased trust in new projects within decentralized finance, blockchain infrastructure, and Web3.
Thus, venture capital is now directed toward a variety of sectors—from finance and energy to medicine and crypto technologies. The strategy of expanding sector focus aims to reduce the risks of overheating in particular segments (such as AI) and ensure a more sustainable development of the entire startup ecosystem.
Consolidation and M&A Deals: Enlarging Players
Rising startup valuations and fierce competition for new markets are driving the industry toward consolidation. A wave of large mergers and acquisitions is once again taking center stage, reshaping the balance of power in the tech sector. The third quarter of 2025 saw a number of significant M&A deals, including the acquisitions of several "unicorns" by strategic investors. Both large corporations looking to acquire promising developments and successful startups themselves, which are merging to strengthen their market positions, are playing a role in this consolidation.
Largest tech companies are actively acquiring innovative startups to expand their product lines and stay ahead of competitors. For example, market leaders in AI are buying up small AI firms to bolster their technologies; in fintech, banks and payment systems are acquiring younger services to integrate new functionalities; and in biotech, pharmaceutical firms are acquiring developers of promising medications. Such consolidation is reshaping the sector landscape, enlarging key players and allowing the most successful projects to scale more rapidly under the wings of large partners. For venture funds, the M&A wave represents additional exit paths: strategic deals are increasingly becoming an alternative to IPOs, offering investors the long-awaited profit. While the aggregate volume of acquisitions may fluctuate quarterly, the trend towards business consolidation is evident—mergers and acquisitions have once again become an integral part of growth strategy in the tech sector.
Russia and the CIS: Local Initiatives Amid Global Trends
In Russia and neighboring countries, despite external constraints, venture activity is also revitalizing. According to industry research, in the first half of 2025, venture investment volumes in the Russian Federation nearly doubled compared to the same period last year (although initial figures remain modest), reaching around $78 million. Meanwhile, the total number of deals has decreased, indicating a new trend: there is more money, but fewer projects. In other words, investors are betting only on the strongest teams. The average deal size has grown, and the criteria for startups have become stricter: passing selection is now more challenging, but projects that manage to earn trust attract significantly larger capital.
New funds and programs aimed at supporting technology companies are being launched in the region. Government institutions and large corporations are increasingly participating in the development of the local startup scene: industry accelerators, regional venture funds (such as the Moscow AI Development Fund or corporate funds within state-owned companies), and innovation clusters are being established. These initiatives aim to compensate for the outflow of foreign capital and integrate local projects into global trends. Despite sanction barriers, the Russian and CIS ecosystems strive to follow global trends—from artificial intelligence to new industrial technologies. Gradually, the local venture market is regaining trust: investors are showing cautious interest in competitive startups within the country and are preparing to fund their growth.
Cautious Optimism and Sustainable Growth
By the end of autumn 2025, moderately optimistic sentiments have established themselves in the venture industry. Successful IPOs and significant deals indicate that the downturn period is behind, although investors still prefer to act selectively, focusing on projects with sustainable business models. Large capital infusions into AI, fintech, defense technologies, and other sectors instill confidence in further growth, yet funds are becoming increasingly meticulous in managing risks to avert market overheating. The industry is entering a new phase of development, emphasizing quality, balanced growth. Market participants are cautiously optimistic: there is an understanding that the upcoming wave of innovations can yield substantial results if a reasonable balance between ambitious investments and risk assessment discipline is maintained.
