Startup and Venture Investment News for Sunday, October 26, 2025: The Return of Mega Funds, Record AI Rounds, Revitalized IPOs, Climate Innovations, a Wave of M&A Deals, and Global Market Trends.
By the end of October 2025, the global venture market is solidifying a confident growth trajectory following several years of decline. Investors worldwide are once again actively funding tech startups — record deals are being closed, and companies are refocusing on IPO plans. Major players are returning to the arena with substantial investments, while governments across various nations are ramping up support for innovation. As a result, private capital is gradually flowing back into the startup ecosystem, providing resources for a new wave of growth. According to industry analysts, the total volume of venture investments globally rose by nearly 40% year-over-year in the third quarter of 2025 — a clear sign of the return of risk appetite.
The surge in venture activity is observable in all regions. The U.S. continues to lead (particularly in the artificial intelligence segment), while investment volumes in the Middle East have nearly doubled year-over-year, and Europe is experiencing shifts with Germany overtaking the UK in venture funding for the first time. In Asia, despite regulatory uncertainty, China is seeing a downturn in activity, while India, Southeast Asia, and the Gulf countries are attracting record capital. The investment boom is reaching new horizons, with tech hubs emerging in Africa and Latin America (recently, Africa witnessed its largest investment of approximately $100 million in the electric mobility sector). The startup ecosystems in Russia and the CIS are also making strides, despite external constraints. A global venture upswing is developing at early stages, although investors remain selective and cautious.
Below are key events and trends in the startup industry as of October 26, 2025:
- The Return of Mega Funds and Large Investors. Leading venture funds are attracting record amounts of capital and significantly increasing their investments, boosting market liquidity and rekindling risk appetite.
- Record Funding Rounds in AI and a New Wave of Unicorns. Enormous investments in AI startups are driving company valuations to unprecedented heights, giving rise to a new generation of unicorns.
- Revitalization of the IPO Market. Successful public offerings of tech companies and new listing applications indicate that the long-awaited "window" for exits has reopened.
- Investment Boom in Defense Technologies. Geopolitical dynamics are prompting increased attention to defense and security startups, positioning them at the forefront of the venture agenda.
- Diversification of Industry Focus. Venture capital is not solely directed toward AI but also flows into fintech, climate ("green") projects, biotechnology, and even crypto startups.
- A Wave of Consolidation: M&A Deals. New large mergers and acquisitions are reshaping the industry landscape, creating opportunities for profitable exits and accelerated company growth.
- Local Focus: Russia and the CIS. New funds and programs are being launched in the region to develop local startup ecosystems, attracting the attention of investors despite external constraints.
- Investor Caution. The market is experiencing a rebound, but participants maintain a measured approach to project evaluation and avoid excessive risk.
The Return of Mega Funds: Big Money Back on the Market
Major investment players are triumphantly returning to the venture space, marking a new phase of risk appetite. For instance, the Japanese conglomerate SoftBank made one of the largest bets of the year, investing tens of billions of dollars in a leading AI market player. Sovereign funds from the Gulf countries have also ramped up their activity, pouring billions into tech projects and rolling out state mega-programs to support the startup sector, establishing their own tech hubs in the region. Simultaneously, numerous new venture funds are popping up globally, attracting significant institutional capital for investments in high-tech sectors.
Renowned Silicon Valley funds have amassed record reserves of uninvested capital ("dry powder") — hundreds of billions of dollars are ready to be deployed as market confidence returns. The influx of such "big money" intensifies competition for the best deals while instilling confidence in the sector regarding continued accessibility to capital. The return of mega funds indicates that investors are once again willing to fund ambitious projects with large checks, rekindling growth dynamics in the venture market.
Record Investments in AI and New Unicorns
The artificial intelligence sector is acting as the main driver of the current venture surge, demonstrating unprecedented funding levels. Investors are eager to position themselves among AI market leaders, directing colossal resources toward the most promising projects. Just in recent weeks, several mega rounds have been announced. For example, the American startup Crusoe, which is creating infrastructure for AI data centers, raised about $1.38 billion at a valuation of around $10 billion. Likewise, significant funding rounds were completed by foundational AI model developers: Anthropic (around $13 billion) and xAI (approx. $5.3 billion). Such deals are elevating company valuations to uncharted heights and highlighting the excitement surrounding AI startups.
Additionally, funding is flowing not just toward applied AI products but also infrastructure solutions — the market is generously compensating even for the "shovels and picks" of this new gold rush in artificial intelligence. As a result, the current investment boom is giving rise to a slew of new unicorns (startups valued over $1 billion). Experts warn of the risk of overheating in specific projects, yet the appetite for venture capital for AI startups remains extremely high.
The IPO Market Comes Alive: A Wave of Public Offerings
The global IPO market is emerging from a prolonged lull and gaining momentum once again. In Asia, Hong Kong has launched a new wave of IPOs, with several major tech companies successfully going public in recent months, collectively raising billions of dollars. In the U.S. and Europe, the situation is also improving; a number of highly valued startups have made successful debuts on the stock market, generating significant interest from investors and price increases in the initial trading days.
The largest venture IPOs of the third quarter of 2025 include:
- Chery Automobile — a Chinese automaker, whose IPO valuation became one of the highest of the year.
- Figma — an American design platform that launched its shares with a valuation of approximately $15–20 billion.
- Klarna — a Swedish fintech unicorn (a "buy now, pay later" service), that successfully listed on the public market.
- Netskope — an American cybersecurity company that completed its listing with a multi-billion-dollar valuation.
Investment Boom in Defense Technologies: A New Priority for the Venture Market
Amid geopolitical tensions, the niche of defense technologies is experiencing rapid growth. Venture investors are actively funding startups related to defense and security, with investment volumes in this sector significantly increasing in 2025, approaching record levels from previous years. Startups in defense technologies are coming to the forefront as a new growth point for the industry.
New "disruptors" are also emerging, challenging traditional defense giants — a prominent example is the startup Anduril, valued at about $30 billion. Major venture funds are also directing substantial capital toward national security projects, confirming the formation of a new priority for the industry.
Diversifying Investments: Beyond AI
In 2025, venture investments are spanning an increasingly diverse array of sectors, no longer confined to artificial intelligence. Following last year's slowdown, fintech is reviving; significant rounds are occurring not only in the U.S. but also in Europe and emerging markets, fueling the growth of new financial services. Simultaneously, interest in climate technologies, "green" energy, and agtech is intensifying — these sectors are attracting record investments amid the global trend toward sustainable development. Biotechnologies and digital health remain focal points for investors as well.
As such, venture capital is gradually spreading across various sectors, making the startup ecosystem more resilient and reducing the risk of overheating in any one segment. The expansion of focus from AI alone to multiple areas indicates that, in addition to innovations in AI, investors are ready to support fintech innovators, "green" startups, biotech platforms, cryptocurrency projects, and other promising directions.
Market Consolidation and M&A Deals
High startup valuations and intense competition are driving a wave of consolidation within the industry. Notable merger and acquisition (M&A) deals are once again coming to the forefront, reshaping the roles within the market. Tech giants are actively scouting among leading startups, eager to acquire key technologies and teams.
In recent months, several high-profile acquisitions have drawn the industry's attention. For instance, Google has agreed to acquire the Israeli cybersecurity startup Wiz for approximately $32 billion — a record amount for the Israeli market. The uptick in M&A activity indicates the maturation of the ecosystem: established startups are either merging with one another or becoming acquisition targets for corporations. Venture funds, in turn, are getting a chance for much-anticipated profitable exits and capital returns for new investments.
Russia and the CIS: New Funds and Initiatives
Despite external constraints, efforts are underway in Russia and neighboring countries to develop the local startup ecosystem. In 2025, several new venture funds have been announced:
- Nova Capital — a fund with a volume of 10 billion rubles for investments in IT startups.
- Kama Flow — the launch of a similarly sized fund aimed at supporting late-stage startups.
- Large corporations and banks are forming corporate venture funds focused on domestic tech projects.
In addition to funding, accelerators, startup schools, and other initiatives are being launched to support entrepreneurs. Local startups are gradually attracting attention not only from Russian investors but also from international partners in friendly countries. Although the market volumes in Russia and the CIS still lag behind global leaders’, the region is striving to keep pace with global trends. Venture investors here are acting selectively and focusing on niches where local teams have competitive advantages.
Cautious Optimism: Outcomes and Prospects
As we approach 2026, the startup and venture investment industry is confidently entering a phase of revitalization. The global influx of capital, a wave of new unicorns, successful IPOs, and strategic deals indicate a restoration of confidence in the market.
At the same time, ecosystem participants are exercising caution. Investors are approaching project evaluations more judiciously and avoiding excessive risk. This balanced approach fosters optimism: the venture market is growing on a more stable foundation, unveiling new opportunities for investors and founders worldwide.
