Startup and Venture Capital News — Wednesday, October 29, 2025: Mega-Rounds in AI, Climate Startup Boom, Defense Technologies, and a New Wave of IPOs
By the end of October 2025, the global venture capital market continues to gain momentum following a period of decline. Investors worldwide are once again actively financing technology startups—record funding rounds are being executed, and companies' plans for initial public offerings (IPOs) are becoming the focus once more. Major players are returning to the arena with substantial investments, while governments from various countries are enhancing support for innovations. As a result, private capital is flowing into startup ecosystems globally, providing the resources necessary for a new phase of growth.
The growth in venture activity is being observed across all regions. The United States leads confidently (especially in the realm of artificial intelligence), while investment volumes in startups in the Middle East are hitting record highs. In Europe, Germany has surpassed the UK in terms of venture deals for the first time. India, Southeast Asia, and the Gulf countries are attracting record amounts of capital amidst a relative slowdown in China. Tech hubs are also forming in Africa and Latin America (for instance, Africa recently witnessed the largest investment of around $100 million in the electric mobility sector). The startup ecosystems of Russia and the CIS countries are also striving to keep pace despite external constraints. A global venture boom in early-stage investments is taking shape, although investors continue to act selectively and cautiously.
Below are key events and trends shaping the venture market agenda as of October 29, 2025:
- The Return of Mega Funds and Major Investors. Leading venture capital funds are attracting unprecedented amounts of capital and dramatically increasing investments, saturating the market with liquidity and igniting a risk appetite.
- Record Rounds in AI and a New Wave of Unicorns. Unprecedented deals are driving startup valuations to unseen heights, particularly in the artificial intelligence segment, resulting in new unicorns.
- Revival of the IPO Market. Successful IPOs of technology companies and new listing applications reaffirm that the long-awaited "window" for exits has reopened.
- Diversification of Sector Focus. Venture capital is not only directed towards AI but also into fintech, climate projects, biotechnology, defense technologies, and even crypto startups.
- A Wave of Consolidation and M&A Deals. New significant mergers, acquisitions, and strategic investments are reshaping the industry's landscape, creating opportunities for exits and accelerated growth.
- Local Focus: Russia and the CIS. Despite constraints, new funds and initiatives to develop local startup ecosystems are being launched in the region, attracting investor interest.
The 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 Japanese conglomerate SoftBank announced the creation of its new Vision Fund III, amounting to around $40 billion, focused on advanced technologies (including artificial intelligence and robotics). Sovereign wealth funds from Gulf countries have also become active, pouring billions into tech projects and developing state mega-programmes to support the startup sector, thereby creating their own tech hubs in the Middle East. Simultaneously, numerous new venture funds are emerging globally, attracting substantial institutional capital for investments in high-tech spheres.
Notable firms from Silicon Valley are also increasing their presence. In the American venture sector, funds have accumulated unprecedented reserves of uninvested capital ("dry powder")—hundreds of billions of dollars ready to be deployed as market confidence grows. The influx of "big money" is saturating the startup market with liquidity, providing funding for new rounds and supporting the growth of promising companies. The return of mega funds and large institutional investors not only intensifies the competition for the best deals but also instills confidence in the industry regarding the continued flow of capital.
Record Investments in AI and a New Wave of Unicorns
The field of artificial intelligence is the main driver of the current venture boom, demonstrating record funding levels. Venture investors are eager to secure positions in the leaders of this sector, channeling colossal amounts of money into promising AI projects. For instance, Elon Musk's startup xAI has reportedly raised around $10 billion, while OpenAI has received about $8 billion, with evaluations around $300 billion—both rounds saw substantial oversubscriptions, highlighting the hype surrounding AI companies. Notably, investments are being directed not only towards end applications powered by AI but also towards the infrastructure for them: the market is willing to fund even the "picks and shovels" for the new AI ecosystem, such as data storage startups and chip manufacturing for AI.
The current investment boom is generating a new wave of unicorns—startups valued over $1 billion. Although experts warn of the risks of overheating and the formation of a "hype bubble" surrounding AI, investor appetite for AI startups shows no signs of waning. However, the growing concentration of capital among a narrow group of leaders raises concerns: the market is becoming "two-speed," with successful AI companies capturing the lion's share of funding, while many lesser-known startups outside the AI domain struggle to secure investment.
IPO Market Revives: A Window of Opportunity for Exits
The global market for initial public offerings is emerging from its silence and gaining traction. In Asia, Hong Kong has sparked a new wave of IPOs: in recent weeks, several major technology companies have gone public, collectively raising billions of dollars. For example, Chinese battery manufacturer CATL successfully raised around $5 billion by issuing shares, showcasing that investors in the region are again eager to participate actively in IPOs.
The situation in the US and Europe is also notably improving. American fintech unicorn Chime recently debuted on the stock market, with its shares rising approximately 30% on the first day of trading. Following this, the design platform Figma conducted its IPO, raising about $1.2 billion at an estimated valuation of $15–20 billion, and Figma's shares also surged confidently in the initial days. In the second half of 2025, other well-known startups—including payment service Stripe and travel-tech company Navan, which plans to raise around $1 billion—are preparing for public market exits. Even representatives from the crypto industry are seeking to take advantage of the revival: for instance, the financial company Circle successfully went public in the summer (and its shares subsequently rose significantly), while crypto exchange Bullish has applied for a listing in the US, targeting a valuation of around $4 billion.
The revival of activity in the IPO market is crucial for the venture ecosystem: successful public exits allow venture funds to realize profitable exits and redirect freed-up capital into new projects. According to industry analysts, by the end of October, the number of IPOs on the US market has increased by nearly 60% compared to the previous year. This confirms that the "window of opportunity" for exits is open, and investors are again ready to embrace new public companies.
Diversification of Investments: Not Just AI
In 2025, venture investments are encompassing an increasingly broad range of industries and are no longer limited to artificial intelligence alone. Following last year's downturn, fintech is experiencing a revival: substantial funding rounds are occurring not just in the US but also in Europe and emerging markets, fueling the growth of new financial services. At the same time, interest in climate technologies and "green" projects is increasing—this segment is attracting record investments amid a global trend towards sustainability. Just in the first nine months of 2025, over $50 billion has been invested in climate and clean energy startups, already surpassing the total for all of 2024.
Investor appetite for biotechnology is returning as well: the emergence of new medications and medical online platforms is once again attracting capital as the industry begins to recover from declines in valuations. Additionally, amidst heightened attention to security, investors are increasingly supporting defense technology projects—startups related to defense and cybersecurity are coming to the forefront of the venture agenda. Finally, a partial restoration of trust in the cryptocurrency market has allowed some blockchain startups to regain funding. The expansion of sector focus is making the entire startup scene more resilient and reducing the risk of overheating in specific segments of the economy.
Consolidation and M&A Deals: Consolidating Players
High valuations of startups and fierce competition for markets are driving the industry towards consolidation. Major mergers and acquisitions are once again taking center stage, reshaping the power dynamics. For example, Google has reportedly agreed to acquire Israeli cybersecurity startup Wiz for around $32 billion—a record sum for Israel's tech sector. Such mega-deals reflect the desire of tech giants to acquire key technologies and talent.
Overall, the current activity in acquisitions and large strategic deals suggests a maturation of the market. Mature startups are merging with each other or becoming targets for acquisition by corporations, allowing venture investors to realize long-awaited profitable exits. For instance, Shane Coplan, founder of the blockchain platform Polymarket, sold a stake in the company for $2 billion to a strategic investor (the owner of the New York Stock Exchange), valuing the startup at $8 billion and making Coplan the youngest self-made billionaire globally. Additionally, AMD has struck a multi-billion-dollar deal with OpenAI to supply specialized AI chips, acquiring an equity option—demonstrating a new format of partnership between large corporations and startups.
The wave of consolidation encompasses various sectors: from fintech to healthcare, from artificial intelligence to defense. Major venture funds and investors are also participating in these deals, aiming to lock in profits and refocus capital on new promising projects. Consequently, the consolidation of players creates conditions for more sustainable growth: stronger companies gain access to one another's resources and technologies, while investors find exits for their investments and opportunities to reinvest funds.
Russia and the CIS: Local Initiatives Amidst Global Trends
Despite external constraints, startup activity is reviving in Russia and neighboring countries. In particular, the launch of several new venture funds has been announced, with a total volume of around 10–15 billion rubles, aimed at supporting early-stage technology projects. Local startups are beginning to attract significant capital: for instance, the Krasnodar-based foodtech startup Qummy recently secured 440 million rubles of investment at a valuation of around 2.4 billion rubles. Additionally, authorities are taking steps to stimulate the market: the Russian Ministry of Finance has announced plans to require major state companies to invest in startups as a sort of "business angels" to channel part of their corporate funds towards supporting innovations.
Some large companies are also contemplating the potential IPO of their technology divisions with the improvement of market conditions—for instance, VK Tech has indicated the possibility of going public in the near future. Notably, Russia has again permitted foreign investors to invest in local projects, gradually restoring interest from foreign capital. While venture investment volumes in the region remain modest compared to global figures, they are steadily growing. New government support measures and corporate initiatives are aimed at fueling the local startup scene and integrating it into global trends.
Cautious Optimism and Quality Growth
By the end of October 2025, the venture market demonstrates moderately optimistic sentiments: successful IPOs and major deals confirm that the downturn is behind us. Nevertheless, investors are still taking a selective approach to investments, preferring startups with sustainable business models. Colossal infusions of capital into AI and other sectors instill confidence in the prospects, but funds strive to diversify their portfolios and tighten risk controls to prevent the new upturn from evolving into overheating. Thus, the industry is entering a new phase of development with a focus on quality, balanced growth. If no external shocks occur, the current venture rise has a chance to seamlessly transition into 2026, continuing to delight investors with new opportunities.
