Global Venture Capital and Startup Overview as of October 23, 2025: Mega-Rounds in AI, Boom in Defense Technologies, Return of Mega Funds, and Revitalization of the IPO Market.
By the end of October 2025, the global venture capital market is showing a confident rise after several years of decline. Investors worldwide are once again actively funding technology startups—record deals are being made, and companies' plans for initial public offerings (IPOs) are back in the spotlight. Major players are returning to the arena with substantial investments, while governments in various countries are ramping up support for innovation. As a result, private capital is again flowing into the startup ecosystem, providing resources for a new cycle of growth. According to industry analysts, the total volume of venture capital invested globally increased by nearly 40% year-over-year in the third quarter of 2025—a clear sign of a resurgent appetite for risk.
The rise in venture activity is being observed across all regions. The U.S. continues to lead (especially in the artificial intelligence sector), while investment in startups in the Middle East has doubled compared to last year. In Europe, Germany has surpassed the UK for the first time in the number of venture deals. In Asia, while regulatory uncertainty leads to a relative downturn in China, India, Southeast Asia, and the Gulf countries are attracting record capital. The investment boom is reaching new heights: on the wave of overall growth, tech hubs are being formed in Africa and Latin America (for example, a recent investment of nearly $100 million in the electric vehicle sector took place in Africa). The startup ecosystems in Russia and the CIS countries are also striving to keep pace despite external constraints. A global early-stage venture boom is taking shape, although investors remain selective and cautious.
Below are key events and trends defining the venture market agenda as of October 23, 2025:
- Return of Mega Funds and Large Investors. Leading venture funds are attracting unprecedented levels of capital and sharply increasing investments, flooding the market with liquidity and enhancing the appetite for risk.
- Record Rounds in AI and a New Wave of Unicorns. Unprecedented investments are driving startup valuations to unseen heights, especially in the artificial intelligence segment.
- Revitalization of the IPO Market. Successful public offerings of tech companies and new listing applications confirm that the long-awaited "window" for exits has reopened.
- Boom in Investments in Defense Technologies. The geopolitical environment is stimulating heightened interest in defense and security startups, which are now forefront in the venture agenda.
- Diversification of Industry Focus. Venture capital is flowing not only into AI but also into fintech, climate projects, biotechnology, defense developments, and even crypto startups.
- 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 CIS. Despite constraints, new funds and initiatives aimed at developing local startup ecosystems are being launched in the region, attracting investor attention.
Return of Mega Funds: Big Money Back in the Market
The largest investment players are triumphantly returning to the venture scene, signaling a renewed appetite for risk. For example, the U.S. firm Andreessen Horowitz has announced the formation of a new mega-fund of approximately $20 billion for investments in promising AI startups, while the Japanese conglomerate SoftBank is launching Vision Fund III, targeting around $40 billion towards advanced technologies. Sovereign wealth funds from the Gulf States have also sharply increased their activity, pouring billions of dollars into tech projects and initiating government mega-programs to form their own tech hubs in the region. Concurrently, dozens of new venture funds are being established worldwide, attracting significant institutional capital for investments in high-tech sectors.
The return of such "big money" from prestigious Silicon Valley funds and global investors not only intensifies competition for the best deals but also instills confidence in the industry regarding future capital inflows. The U.S. venture sector has amassed record reserves of uninvested capital ("dry powder")—hundreds of billions of dollars are ready to be deployed as new opportunities arise. The influx of large funds saturates the market with liquidity, providing resources for large-scale funding rounds and supporting the growth of promising companies.
Record Investments in AI and a New Wave of Unicorns
The field of artificial intelligence is the primary driver of the current venture surge, demonstrating unprecedented volumes of funding. Investors around the world are eager to position themselves among the leaders of the AI sector, directing colossal funds into the most promising projects. For instance, the project xAI (founded by Elon Musk) has attracted around $10 billion in total, while AI model developer OpenAI has received financing of approximately $8–9 billion at a valuation of about $300 billion. Rumors are circulating that one of the companies creating infrastructure for AI is negotiating a multi-billion dollar round at an exceedingly high valuation. This investment frenzy has spawned a whole slew of new "unicorns"—startups valued at over $1 billion.
The powerful influx of capital is rapidly inflating the valuations of young AI companies. AI startups are now reaching "unicorn" status at record speed, especially in segments related to generative AI and its supporting infrastructure. Experts estimate that in 2025, total venture investments in AI startups will exceed $200 billion—this accounts for about half of the global venture capital market. In developed countries, around 70% of all venture funds are currently concentrated in mega-rounds ($100+ million), reflecting the trend towards larger deal sizes. Although some analysts caution about the risk of overheating at early stages (where any project with an AI label receives inflated valuations), the fear of missing out on the next technological revolution continues to fuel capital inflows. The appetite for AI projects among investors remains high, and the artificial intelligence sector is experiencing an unprecedented boom.
IPO Market Revitalization: Window of Opportunities for Exits
The global market for initial public offerings (IPOs) of startups is emerging from a lull and gaining momentum. Over the past few months, several notable venture-backed companies successfully conducted IPOs, receiving high valuations in the public market. Investors are again eager to acquire shares in tech newcomers, evidenced by impressive debuts: for example, the design software company Figma and fintech giant Circle entered the public market with tremendous success—their capitalizations skyrocketed in the first days of trading. Throughout 2025, the total number of tech IPOs has significantly increased compared to last year, with over a dozen unicorn startups going public in the third quarter alone, boasting a combined capitalization of over $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 ambitions and filing applications with regulators. Among anticipated major debuts are the Swedish fintech unicorn Klarna, preparing for a listing with a valuation of around $14 billion, as well as the American payment company Stripe, which the market expects will have one of the largest valuations among private tech firms. The success of these new listings not only allows founders and funds to lock in profits but also restores confidence that the venture cycle can again conclude with planned exits. A window of opportunities for investment exits has reopened, ensuring a capital flow into the next generation of startups.
Boom in Defense Technologies: A New Priority in the Venture Market
Amid geopolitical tensions, the niche for defense and military technologies is booming. Venture investors are increasingly financing startups related to defense, security, and aerospace. In Europe, investments in defense startups have increased significantly since early 2022: just in the first months of 2025, companies in this sector attracted approximately €1.4 billion, which is many times more than in previous periods. The heightened interest is fueled by government contracts and the search for innovative solutions for the military—from drones to biotech sensors. American funds are also getting in on the game: new players focused on military technologies are emerging, and some large corporations (for instance, defense contractors) are launching their own venture divisions to scout potential breakthroughs.
The rapid capital influx into the defense-tech sector is creating a new priority in the venture market. Startups that were previously on the periphery of interest (military AI systems, robotics for the army, cybersecurity, etc.) are now coming to the forefront. Although some analysts warn that the excitement surrounding defense technologies may reach a peak, investors are willing to actively invest in this area, given the strong demand from government clients and the relevance of the developments. The boom in defense startups highlights how quickly venture capital adapts to new global challenges, pivoting towards areas that promise substantial growth in demand.
Diversification of Investments: Not Just AI
In 2025, venture investments cover an ever-wider range of industries and are no longer solely focused on artificial intelligence. Following the downturn of the previous year, financing in other segments of the tech market is resuming, making the current upswing more balanced. Funds are eager to diversify their portfolios, allocating capital to promising projects across various domains. Key sectors attracting investor attention include:
- Fintech: New financial technology services and digital banks continue to receive significant investments amid steady demand for online services. Global investments in the fintech sector are again amounting to tens of billions of dollars, demonstrating a "second wind" for the industry following the downturn of 2022–2023.
- Climate and "Green" Projects: Clean energy solutions, emissions reduction, and eco-tech are drawing venture capital attention due to the priority of sustainable development (ESG). For instance, a coalition of private venture firms led by Bill Gates's Breakthrough Energy Ventures has formed a new fund of approximately $300 million to finance climate startups and plans to make its first investments shortly.
- Biotechnology and Healthcare: Investments in the development of new drugs, genetic research, life extension technologies, and medical devices remain high. Pharmaceutical giants and specialized funds are actively investing in biomedical and healthtech startups, anticipating breakthrough products and vast market potential. For example, Finnish "smart ring" maker Oura attracted approximately $900 million at an $11 billion valuation, demonstrating investor interest in health wearables.
- Cryptocurrencies and Blockchain: After a decline in interest over recent years, crypto startups are back on the radar of venture investors. Market stabilization for digital assets and regulatory progress have raised confidence in new projects in decentralized finance, blockchain infrastructure, and Web3.
Thus, venture capital is now being directed into various industries—from finance and energy to medicine and crypto technologies. The strategy of expanding industry focus aims to mitigate overheating risks in any single segment (such as AI) and ensure a more sustainable development of the entire startup ecosystem.
Consolidation and M&A Deals: Enlarging Players
High valuations for startups and fierce competition for new markets are driving the industry toward consolidation. A wave of major mergers and acquisitions is once again coming to the forefront, shifting the balance of power in the tech sector. In the third quarter of 2025, numerous notable M&A deals took place, including the acquisition of several unicorns by strategic investors. This consolidation is fueled by large corporations seeking to acquire promising developments, as well as successful startups merging to strengthen their market positions.
Major tech companies are actively acquiring innovative startups to expand their product lines and outpace competitors. For example, market leaders in AI are acquiring smaller AI companies to bolster their technology; in fintech, banks and payment systems are acquiring young services for the integration of new functions; and in biotech, pharmaceutical giants are acquiring developers of promising drugs. Such consolidation is reshaping the industry landscape, enlarging key players and allowing the most successful projects to scale more rapidly under the wings of larger partners. For venture funds, the M&A wave presents additional paths for exits: strategic deals are increasingly becoming an alternative to IPOs, providing investors with the long-awaited returns. Although the total volume of acquisitions may fluctuate quarterly, the trend toward business consolidation is evident—mergers and acquisitions have once again become an integral part of growth strategies in the tech sector.
Russia and CIS: Local Initiatives Amid Global Trends
In Russia and neighboring countries, despite external constraints, there is also a resurgence of venture activity. According to industry research, the volume of venture investments in the Russian Federation almost doubled in the first half of 2025 compared to the same period last year (albeit from modest initial figures), reaching approximately $78 million. However, the total number of deals has decreased, indicating a new trend: there is more money, but fewer projects. In other words, investors are now betting only on the strongest teams. The average round size has increased, and the criteria for startups have tightened: passing the selection process is now more challenging, but those 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 Moscow's AI development fund or corporate funds of 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 the flow of global trends. Despite the sanctions barriers, the Russian and CIS ecosystems are striving to align with global trends—from artificial intelligence to new industrial technologies. Gradually, the local venture market is restoring trust: investors are showing cautious interest in competitive startups within the country and are preparing to finance their growth.
Cautious Optimism and Sustainable Growth
By the end of autumn 2025, moderately optimistic sentiments have settled in the venture industry. Successful IPOs and major deals indicate that the downturn period is behind us, though investors still prefer to act selectively, focusing on projects with sustainable business models. Large capital infusions into the fields of AI, fintech, defense technologies, and other sectors instill confidence in further growth; however, funds are increasingly scrutinizing risks to avoid market overheating. The industry is entering a new phase of development with an emphasis on quality, balanced growth. Market participants are cautiously optimistic: there is an understanding that the upcoming wave of innovations can yield substantial results while maintaining a prudent balance between ambitious investments and discipline in risk assessment.
