Startup and Venture Investment News - Sunday, October 5, 2025: Record AI Rounds, IPO Preparations, and New Funds
At the beginning of October, the venture capital market is showing mixed signals. On one hand, the surge in multimillion-dollar deals in the field of artificial intelligence (AI) and semiconductors has led to a spike in global investments. On the other hand, the valuations of some startups raise concerns of market overheating. For investors in the CIS, not only global statistics are relevant, but also local news: the Moscow Startup Summit was held, offering over 1.2 billion rubles in investments for early-stage projects, while regional funds presented new tools for support. Below is a detailed analysis of key trends.
Global Trends: Capital Concentration Around AI and Semiconductors
PitchBook data for Q1 2025 revealed that AI accounted for 57.9% of all venture funding, with capital raised reaching $73.1 billion. By Q3, Bloomberg estimates indicated that total investments in AI startups exceeded $192.7 billion. This influx of "large checks" has accompanied a decline in the number of deals and a drop in funding at early stages, a trend noted by analysts worldwide. In South Korea, only 296 venture deals were made in Q3, a 35% decrease year-on-year; however, the total investment volume grew to 2.43 trillion won (≈ $1.8 billion) thanks to eleven large rounds of more than 50 billion won each. Most of the funds went to companies like Rebellions, FuriosaAI, and Medit, which focus on AI processors and medical technologies. Meanwhile, the number of seed and Series A rounds has nearly halved.
Experts warn that valuations in the AI sector are starting to disconnect from reality: according to Brian Yo, head of the investment division at Singapore's GIC, some companies are being valued at $400 million to $1.2 billion per employee, with investors willingly paying for the “AI” brand. PitchBook's head of research Kyle Sanford notes that the market has "split"; large players in the AI field are attracting record sums, while traditional projects struggle for investor attention.
Major Rounds of the Week
Global investors continue to bet on infrastructure and deep-tech projects. The largest deals from the past week include:
- Cerebras Systems - the AI processor developer raised $1.1 billion in a Series G round, with investors including Fidelity and Atreides Management, bringing the company's valuation to $8.1 billion.
- Nscale - an AI data center operator, secured $433 million for building next-generation data centers.
- Filevine - a provider of legal work automation platforms, raised $400 million with participation from StepStone Group and Golub Capital.
- Periodic Labs - a startup creating autonomous laboratories for scientific experiments, launched with $300 million in initial funding from Andreessen Horowitz, NVentures, DST Global, and other funds.
- Vercel - a developer-focused platform offering enterprise cloud hosting, raised $300 million at a valuation of $9.3 billion.
- Rebellions - a South Korean chip developer, raised $250 million in Series C to bring RISC-V-based processors to market.
- Crystalys Therapeutics - a biotech company, collected $205 million for developing a gout treatment.
- Flying Tulip - a fintech platform for decentralized exchanges, closed a $200 million round with participation from CoinFund, DWF Labs, and FalconX.
- Supabase - a developer of PostgreSQL tools, received $100 million at a valuation of $5 billion. Growing demand for developer platforms and MLOps continues to attract investor interest.
- Other deals: Eve ($103 million), Einride ($100 million for autonomous trucks), DualEntry ($90 million), Empower Semiconductor ($140 million for AI energy efficiency).
This concentrated activity supports the thesis of a capital shift favoring infrastructure companies focused on hardware, cloud, and AI tools.
New Funds and Strengthening the Military Technology Sector
In addition to transactions, specialized funds are emerging in the market ready to finance complex technologies. In the U.S., the Wave Function Ventures fund, with a volume of $15 million, has launched, targeting hardware and deep-tech startups, while the Spanish fund 4Founders Capital has raised €70 million for early-stage investments in fintech and cybersecurity. In Europe, the number of funds supporting defense and dual-use technologies is increasing due to geopolitical risks; investors are demanding clear commercial roadmaps and revenue from startups.
In Russia, several new funds were launched in 2025:
- “Medscan” has formed a fund of 10 billion rubles to support medical startups.
- Rebel Capital, co-founded by 3DLook co-founder Vadim Rogovskiy and investor Anna Markusskaya, aims to acquire IT companies.
- Kama Flow has launched a fund of 10 billion rubles designated for late-stage high-tech companies.
- T-Investments offers private investors access to venture opportunities, reflecting the trend towards market democratization.
Modifications in the IPO Market and Paths to Liquidity
In fall 2025, an uptick is observed in public markets. Primarily, AI companies are capturing interest: SoftBank and MGX supported a tender for OpenAI, valuing the company at $500 billion, while "Fermi America" debuted on Nasdaq with a valuation of $21.5 billion. Several large companies are preparing for IPOs:
- Wealthfront has filed for an IPO, reporting a revenue growth of 43% to $309 million and a net profit of $194 million.
- Navan enhanced revenue by 30% in the first half of the year and plans a U.S. listing that may value it at over $8 billion.
- Spanish travel service TravelPerk has hired Morgan Stanley, Goldman Sachs, and Jefferies to prepare for a U.S. listing.
- Zelis Healthcare is considering a listing in 2026 and has already raised additional capital to expand its business.
- Dataiku has prepared Morgan Stanley and Citigroup for a potential IPO in the first half of 2026; the company services over 700 corporate clients and has annual revenues exceeding $300 million.
- Klook, a platform for booking activities and tours, has selected Goldman Sachs, Morgan Stanley, and JPMorgan for a potential U.S. listing that could attract $500 million, depending on market conditions.
Outside the public markets, it's important to note the large secondary deals: a group of investors led by the Saudi fund PIF and Silver Lake aims to acquire Electronic Arts for $55 billion; Meta plans to purchase the startup Rivos, a developer of RISC-V architecture microprocessors, to enhance its semiconductor capabilities.
M&A and Corporate Transactions
Amid the decline in IPO numbers, venture investors are shifting their focus to strategic acquisitions and partnerships. Key events of the week include:
- Meta Platforms reached an agreement to acquire the startup Rivos, which creates RISC-V compatible chips for AI systems, bolstering the MTIA (Meta Training and Inference Accelerator) direction. The deal's sum has not been disclosed, but Rivos was previously valued at nearly $2 billion.
- Perplexity has acquired design startup Visual Electric, enhancing its capabilities in generative AI.
- A group of investors, including Saudi PIF, Silver Lake, and Affinity Partners, is purchasing Electronic Arts for $55 billion, demonstrating sovereign funds' interest in IP projects within the gaming industry.
- In Russia, Arenadata acquired Ubic Technologies, expanding its big data processing ecosystem.
Meanwhile, technological partnerships are also evolving: OpenAI agreed to supply memory with Samsung and SK Hynix to reduce the costs of AI servers, Salesforce launched the AI Cloud service for developers, and Stripe received federal and New York licenses for issuing stablecoins, opening up prospects for the tokenization of financial operations.
The Russian and Neighboring Markets: Startup Survival and New Deals
A study by the Moscow Innovation Cluster revealed that 61% of Russian tech companies survive the first three years of operation, matching the figures in Europe and the USA. Despite the myth of "90% failures," modern startups are more resilient, especially thanks to support from clients, partners, and development institutions. However, 80% of teams face crises in their initial years, making business model adaptation and team building crucial.
This week, a number of Russian and CIS startups secured new capital:
- Nozomio (Kazakhstan) - an AI-based payment service developer secured $6.2 million from Y Combinator, CRV, and other investors.
- Platformeco - a service supporting marketplaces, attracted 100 million rubles from Kama Flow.
- Altairika (EdTech) raised 39.7 million rubles ahead of its IPO.
- Qummy - an AI system for enterprise management, raised 440 million rubles, confirming rising investor interest in business applications based on machine learning.
- Pavel Durov announced the launch of an AI laboratory in Astana, demonstrating private capital's interest in developing regional scientific potential.
- Yandex.Eda launched a platform for collaboration between restaurants and influencers, opening a new monetization channel for small enterprises.
Additionally, at the Moscow Startup Summit, new projects from the Sber500 accelerator were presented: 25 finalists out of 1,900 teams received offers totaling over 1.2 billion rubles. Among the proposed solutions are a diagnostic platform for identifying mental disorders via lipidomic blood analysis, next-generation neuroprocessors, 3D printing of multi-story buildings, and a portable respiration trainer with an AI assistant. 85% of startups utilize artificial intelligence, underscoring the dominance of the technology even in the local ecosystem.
Trends in Asia and Solutions for Youth
South Korea demonstrated a sharp increase in venture investments in Q3 2025: the funding volume reached 2.43 trillion won; however, the number of deals has decreased. Nearly 70% of capital came in stages B and C, while the share of early rounds dropped by 44%. The AI and semiconductor sectors dominate, attracting global capital, but local experts caution that the decline in seed deal numbers may lead to a collapse of the startup pipeline. To sustain the innovative ecosystem, the government must find a balance between large investments and support for emerging teams.
Meanwhile, in Russia, a gas company and the largest bank have agreed on joint programs for youth startups. The signing of an agreement between Gazprom Neft and Sber at the Moscow Startup Summit expands opportunities for emerging teams; initiatives are being joined by accelerators "Industries" and "Sber500", which have already helped graduates attract over 750 million rubles in investments. Such steps demonstrate the importance of synergy between corporate giants and the startup ecosystem.
What This Means for Venture Investors
The shift in capital towards AI, semiconductors, and other deep technologies is evident. However, the rapid increase in valuations and the decline in early-stage deals indicate higher risks. Investors should:
- Filter quality projects. Focus on teams with mature technologies and sustainable business models; in 2025, 61% of Russian startups survive the first three years, demonstrating long-term growth potential.
- Diversify the portfolio. Besides AI, fintech for B2B, dual-use defense technologies, and climate projects are of interest, especially in Asian and European countries.
- Prepare exit strategies. The IPO market is reviving, but companies are seeking hybrid liquidity mechanisms through secondary deals and strategic sales. Investors must plan potential exits in advance.
- Monitor the regulatory environment. The development of RISC-V and semiconductors, licensing of stablecoins, and increased control over AI models create both risks and opportunities for portfolio companies.
- Collaborate with corporations. Joint accelerators, partnerships with industry leaders, and real sector pilots will allow startups to test hypotheses and scale solutions more rapidly.
Expectations for the coming year are moderately optimistic: the revival of the IPO market and the emergence of new funds may open up investment exit opportunities, but overheating in the AI sector necessitates a cautious approach to valuations and portfolio management.
