Latest Startup and Venture Capital News for Friday, November 21, 2025: The Return of Mega Funds, Landmark AI Rounds, Reviving IPOs, M&A Wave, Growing Interest in Crypto Startups, and New "Unicorns". A Detailed Review for Venture Investors and Funds.
By the end of November 2025, the global venture market is confidently continuing its recovery from the downturn of recent years. According to industry analysts, the total volume of venture investments reached approximately $97 billion in the third quarter of 2025 – nearly 40% higher than the previous year and marking the best quarter since 2021. The "venture winter" of 2022-2023 is behind us, and private capital inflow into tech startups is noticeably accelerating. Major funding rounds and the launch of new mega funds signal a return of investor appetite for risk, although they are still acting selectively and cautiously.
The increase in venture activity is observed across all regions. The U.S. continues to lead (especially in the artificial intelligence segment), investment volumes in the Middle East have doubled year-over-year, while Germany has overtaken the UK in deal numbers for the first time. In Asia, growth in India and Southeast Asia compensates for the decline in activity in China. Tech hubs are also forming in Africa and Latin America; startup ecosystems in Russia and the CIS are striving to keep pace despite external limitations. Overall, the global market is gaining strength, although investors are still investing selectively — primarily in the most promising and resilient projects.
- Return of Mega Funds and Large Investors. Leading venture players are raising record capital and flooding the market with investments, reigniting appetite for risk.
- Record AI Rounds and a New Generation of "Unicorns". Mega funding rounds in the artificial intelligence sector are skyrocketing startup valuations and giving rise to a wave of new companies valued above $1 billion.
- Revival of the IPO Market. Successful public listings of tech companies and new listing plans confirm that the long-awaited "window" for exits has reopened.
- Diversification of Industries. Venture capital is flowing not only into AI but also into fintech, green technologies, biotech, defense projects, and other sectors – the investment focus is expanding.
- Wave of Consolidation and M&A. Major mergers and acquisitions are reshaping the industry landscape, creating opportunities for profitable exits and accelerated growth of companies.
- Return of Interest in Crypto Startups. After a prolonged "crypto winter," blockchain projects are once again receiving significant funding and attention from investors.
- Local Focus: Russia and the CIS. New funds and initiatives to develop local startups have emerged in the region, attracting investor interest despite external limitations.
Return of Mega Funds: Big Money is Back on the Market
The venture arena is seeing the return of the largest investment funds and institutional players, signaling a new cycle of risk appetite. Following a downturn in VC fundraising in 2022-2024, leading firms are resuming capital raising and launching mega funds, demonstrating faith in the market's potential. For instance, Japanese conglomerate SoftBank is forming the Vision Fund III, targeting approximately $40 billion, while in the U.S., Andreessen Horowitz is raising a record fund of about $20 billion with a focus on late-stage investments in AI startups.
Sovereign funds from the Gulf countries are also becoming more active, pouring billions of dollars into tech projects and developing state megaprograms to support the startup sector — world-class tech hubs are being formed in the Middle East. Simultaneously, many new venture funds are being established worldwide to attract significant institutional capital for investment in high-tech sectors. Renowned Silicon Valley firms have also increased their dry powder: in the U.S. alone, funds have accumulated hundreds of billions of dollars in uninvested capital ready to deploy as market confidence returns. The influx of this "big money" is filling the startup ecosystem with liquidity, supporting the growth of promising companies' valuations. The return of mega funds and large investors not only intensifies competition for the best deals but also instills confidence in the industry regarding the future flow of capital.
Record Investments in AI: The New Wave of "Unicorns"
The artificial intelligence sector is the main driver of the current venture boom, demonstrating unprecedented funding volumes. Approximately half of all venture investments in 2025 are directed towards AI startups, and global investment in AI is expected to exceed $200 billion by the end of the year. Investors are eager to secure leading positions in this segment, directing colossal funds into the most promising projects. For example, California-based startup OpenAI has raised around $13 billion in total, while French Mistral AI secured approximately €1.7 billion (around $2 billion) — both of these mega rounds sharply increased company valuations and underscore the excitement surrounding AI startups.
The current investment boom is giving rise to a new generation of "unicorns" — companies valued at over $1 billion. Recently, the number of such startups has been rapidly increasing again. In just October 2025, around 20 new "unicorns" emerged globally, marking the highest monthly figure in the last three years. Despite experts' warnings about the risks of market overheating, investor appetite for AI startups remains unabated.
IPO Market Awakens: A Window of Opportunity for Exits
Amid rising valuations and capital inflow, tech companies are once again actively preparing to go public. After nearly two years of dormancy, a new wave of IPOs has begun. Asia kicked off this trend with Hong Kong, where several large tech companies have gone public in recent months, collectively raising billions of dollars. For instance, Chinese battery giant CATL successfully launched its shares, raising approximately $5 billion, demonstrating that investors in the region are once again ready to actively participate in IPOs.
The situation is also improving in the U.S. and Europe. American fintech "unicorn" Chime recently debuted on the stock market, with its shares soaring about 30% on the first trading day. Shortly after, design platform Figma conducted its IPO, raising around $1.2 billion with an estimated valuation of $15–20 billion; its shares also continued to rise confidently in the first days. In the second half of 2025, other notable startups, including payment service Stripe and several other highly valued companies, are preparing to enter the public market.
Even the crypto industry is trying to capitalize on the revival: for example, fintech company Circle successfully conducted its IPO in the summer (its shares subsequently increased significantly), while cryptocurrency exchange Bullish has filed for a listing in the U.S. with a target valuation of about $4 billion. The return of activity in the public placement market is crucial for the entire venture ecosystem: successful exits allow funds to realize profitable returns and redirect freed-up capital into new projects, supporting further growth in the industry.
Diversification of Industries: Broader Investment Horizon
In 2025, venture investments encompass a much broader range of industries and are no longer limited to just artificial intelligence. Following last year's downturn, fintech is noticeably revitalizing: significant funding rounds are occurring not only in the U.S. but also in Europe and emerging markets, fueling the growth of promising financial services. Concurrently, interest in climate technologies and "green" energy is strengthening — these sectors are attracting record investments amid the global trend of sustainable development.
Investor appetite for biotech is also returning: the emergence of new drug developments and medical online platforms is once again drawing capital as valuations in the sector recover. Additionally, amid heightened attention to security, investors are increasingly supporting defense technology projects. Thus, the industry focus of venture capital is expanding, making the entire startup ecosystem more resilient and reducing the risk of overheating in individual segments.
Wave of Consolidation and M&A Deals
High startup valuations and fierce competition for markets have led to a new wave of mergers and acquisitions. Major tech corporations are actively engaging in deals again, reshaping the balance of power in the industry. For instance, Google has agreed to acquire Israeli cybersecurity startup Wiz for approximately $32 billion — a record sum for Israel's tech sector.
Such mega deals illustrate the desire of tech giants to acquire key technologies and talents. Overall, the current activity in mergers and acquisitions shows market maturation. Mature startups are merging with one another or becoming acquisition targets for corporations, while venture investors are finally gaining opportunities for long-awaited profitable exits. The wave of consolidation accelerates the growth of companies and revitalizes the ecosystem, cleansing it of weaker players.
Return of Interest in Crypto Startups
After a prolonged "crypto winter," the market for blockchain startups is noticeably reviving. In the fall of 2025, funding for crypto projects reached its highest levels in several years. New significant rounds are taking place in Web3 infrastructure and decentralized finance, and capital is once again beginning to pour into promising blockchain platforms. The rise in the crypto market has also played a role: Bitcoin surpassed the psychological barrier of $100,000, boosting investor enthusiasm for the sector.
Venture funds that were previously cautious about crypto assets are renewing investments in projects at the intersection of technology and finance. New initiatives are also emerging: for instance, funds focused on crypto startups and incubators for Web3 projects are being launched. Although events of recent years have taught investors to be cautious (volatility and regulatory risks remain), they are gradually increasing their presence in the crypto sector, striving to capitalize on the potential growth of new technological platforms.
Local Market: Russia and the CIS
In Russia and neighboring countries, several new venture funds have emerged over the past year, and government structures and corporations have launched programs to support tech startups. Despite a relatively modest total investment volume and ongoing barriers (high rates, sanctions, etc.), the most promising projects continue to attract funding. The gradual development of local venture infrastructure is already creating a foundation for the future — for the time when external conditions improve and global investors can return to the region more actively.
Conclusion: Cautious Optimism
The venture capital industry is currently characterized by moderately optimistic sentiments. The rapid rise in the valuation of startups (especially in the AI segment) somewhat resembles the dot-com boom era and raises concerns about possible market overheating. However, the current excitement is simultaneously directing enormous resources and talents into new technologies, laying the groundwork for future innovative breakthroughs. By the end of 2025, the startup market is clearly revived: record levels of funding are being noted, new IPOs are on the horizon, and funds have accumulated unprecedented reserves of capital.
However, investors have become significantly more discerning, preferring to invest primarily in projects with sustainable business models and real growth potential. The main question is whether the high expectations surrounding the AI boom will be justified and if other sectors will be able to match its attractiveness for capital. So far, the appetite for innovation remains strong, and the market is looking to the future with cautious optimism.
