Current News on Startups and Venture Investments for Monday, November 17, 2025: The Return of Mega Funds, Record AI Rounds, Recovery in the IPO Market, a Wave of M&A, Revitalization of Crypto Startups, and New "Unicorns". A Detailed Overview for Venture Investors and Funds.
As of mid-November 2025, the global venture market is solidly recovering from the downturn of recent years. According to industry analytics, total venture capital investment reached approximately $97 billion in the third quarter of 2025—almost 40% higher than the previous year, marking the best quarterly performance since 2021. The "venture winter" of 2022-2023 is behind us, and the influx of private capital into tech startups is noticeably accelerating. Large funding rounds and the launch of new mega funds signal a resurgence of investor risk appetite, although they remain selective and cautious in their approach.
Venture activity is increasing across all regions. The U.S. continues to lead (especially with robust investment in artificial intelligence projects), while funding volumes in the Middle East have roughly doubled over the year, fueled by sovereign wealth funds. In Europe, there is a noticeable upswing—Germany has overtaken the UK for the first time in terms of venture capital raised. In Asia, record capital flows are being attracted by India and Southeast Asia amid relative declines in China’s activity. Tech hubs are forming in Africa and Latin America, while the startup scenes in Russia and the CIS strive to keep pace despite external constraints. Overall, the global market is gaining strength, though investors continue to invest selectively—primarily in the most promising and resilient projects.
- The Return of Mega Funds and Large Investors: Leading venture players are raising record capital and actively investing in startups, saturating the market with capital and reigniting appetite for risk.
- Record AI Rounds and New Unicorns: Unprecedented mega funding rounds in artificial intelligence are driving startup valuations to new heights and generating a wave of new "unicorns."
- The Revival of the IPO Market: Successful IPOs from tech companies and new listing plans confirm that the long-awaited "window" for exits has reopened.
- Diversification of Sectors: Venture capital is flowing not just into AI, but also into fintech, green technologies, biotech, defense developments, and other sectors—the investment focus is broadening.
- A Wave of Consolidation and M&A: Major mergers and acquisitions are reshaping the industry landscape, creating new opportunities for profitable exits and accelerated growth of companies.
- The Return of Interest in Crypto Startups: After a prolonged crypto winter, blockchain projects are once again receiving significant funding and attention from funds and corporations.
- Local Focus: New funds and initiatives are emerging in Russia and the CIS to develop local startup ecosystems, drawing interest from investors despite constraints.
The Return of Mega Funds: Big Money Back in the Market
The largest investment funds and institutional players are confidently returning to the venture arena, signaling a new wave of risk appetite. Following the downturn in venture fundraising from 2022 to 2024, leading firms are resuming capital raising and launching mega funds, demonstrating their belief in the market's potential. For instance, the Japanese conglomerate SoftBank announced the launch of its new Vision Fund III totaling around $40 billion. In the USA, Andreessen Horowitz is forming a record-sized fund (~$20 billion) with a focus on late-stage AI startups.
Sovereign funds from the Middle East are also stepping up, injecting billions of dollars into high-tech projects and creating regional tech hubs. At the same time, dozens of new venture funds are emerging across all regions, attracting significant institutional capital for investments in tech companies. The return of such "mega structures" means more financing opportunities for startups but also intensifies competition among investors for the best projects.
Record Investments in AI: A New Wave of Unicorns
The artificial intelligence sector remains the main driver of the current venture boom, showcasing record funding levels. Estimates suggest that about half of all venture investments in 2025 will be directed towards AI startups, and total global investments in AI could surpass $200 billion by year-end—an unprecedented level for the industry. This enthusiasm is linked to AI technologies promising to significantly enhance efficiency across various sectors and unlock multi-trillion-dollar markets—from industrial automation to personal digital assistants. Despite warnings of potential market overheating, funds continue to ramp up investments, fearing they might miss out on the next technological revolution.
The massive influx of capital is accompanied by a concentration of resources in leading companies: the lion's share of investments is going to a select few firms dominating the AI race. For example, the French startup Mistral AI raised about $2 billion, while OpenAI secured $13 billion in a single round—both mega rounds sharply increased the valuations of these companies. Such transactions inflate startup valuations but simultaneously concentrate resources in the most promising areas, creating a foundation for future breakthroughs.
In recent weeks, several companies have announced major funding, confirming the return of "big checks" to the market. Notable examples include:
- Synthesia (UK) – raised $200 million at a valuation of ~$4 billion to develop its AI video generation platform (the round was led by GV from Alphabet).
- Armis (USA) – received $435 million in a pre-IPO round at a valuation of $6.1 billion to expand its IoT device cybersecurity platform (investor leaders include Goldman Sachs and CapitalG).
- Cursor (USA) – raised approximately $2.3 billion in a recent funding round, elevating its valuation to ~$29 billion just five months after the previous round, highlighting unprecedented enthusiasm around AI tools for developers.
The Revival of the IPO Market and Exit Prospects
Against a backdrop of rising valuations and capital influx, tech companies are again actively preparing to go public. Following nearly two years of stagnation, there has been a noticeable surge in IPOs as the primary exit mechanism for venture funds. Several successful listings in 2025 confirmed the opening of an "opportunity window": for instance, American fintech unicorn Circle successfully conducted an IPO with a valuation of around $7 billion—this debut restored investor confidence in the market's appetite for new tech issuers. Following this, several large private companies are eager to take advantage of the favorable conditions. Insider reports suggest that ChatGPT creator OpenAI is considering its own IPO in 2026, potentially valued at up to $1 trillion, which would set an unprecedented case for the industry. The blockchain company ConsenSys (developer of the MetaMask wallet) is also preparing for a listing in 2026.
Improved market conditions and gradual clarity in regulations (such as the introduction of specific laws on stablecoins and the anticipation of approval for Bitcoin ETFs) are instilling confidence in startups: the public market has once again become a viable option for raising capital and exiting for investors. The return of successful IPOs is crucial for the venture ecosystem: profitable exits allow funds to recoup investments and direct freed-up resources into new projects, closing the investment cycle.
Diversification of Sectors: Broader Investment Horizons
In 2025, venture investments are covering a much wider array of industries and are no longer limited to just artificial intelligence. Following last year's downturn, fintech is experiencing a revival: significant funding rounds are taking place not only in the US but also in Europe and emerging markets, fueling the growth of new digital financial services. At the same time, amid a wave of sustainability, investors are actively financing climate and "green" projects. Aerospace and defense technologies are gaining momentum—funds are increasingly investing in aerospace startups, drone systems, and defense-tech.
Thus, the investment focus is significantly expanding: in addition to AI innovations, venture capital is now flowing into fintech, environmental startups, biotech/medtech, security projects, and other sectors. This wide-ranging diversification makes the entire startup ecosystem more resilient and reduces the risk of overheating in specific segments. Notably, following the third quarter, the healthcare sector emerged as the third-largest globally in terms of venture investments (approximately $15-16 billion). For example, American medtech startup Forward Health raised $225 million in a Series D round (with investors including SoftBank and Founders Fund), elevating its valuation above $1 billion and achieving unicorn status. Additionally, interest in defense technologies is returning (a prime example is Anduril Industries, USA, which received $2.5 billion, doubling its valuation to ~$30 billion), and the partial restoration of trust in the cryptocurrency industry has allowed some blockchain projects to once again begin attracting funding.
A Wave of Consolidation and M&A Deals
Elevated startup valuations and fierce market competition have led to a new wave of mergers and acquisitions. Tech giants are resuming activity, eager to acquire key technologies and talent: for instance, Google agreed to purchase the Israeli cybersecurity startup Wiz for approximately $32 billion—a record sum for the Israeli tech sector. Such large-scale M&A activity indicates that the startup ecosystem has matured: established companies are either merging with one another or becoming acquisition targets for corporations, and venture investors are finally getting the chance for long-awaited profitable exits.
Consolidation is also affecting the venture sector itself. In October, investment bank Goldman Sachs announced the acquisition of venture firm Industry Ventures for approximately $1 billion—one of the largest deals of the year within the VC market, reflecting increasing interest from traditional financial institutions in tech assets. Furthermore, signs of consolidation have also triggered in the crypto industry: sources indicate that payment giant Mastercard is close to acquiring a blockchain infrastructure startup (a provider of technologies for stablecoins) for up to $2 billion. These moves confirm the desire of major players to establish a foothold in promising niches and accelerate market reconfiguration in favor of larger and more resilient companies.
The Return of Interest in Crypto Startups
Following a prolonged decline amid the "crypto winter," the blockchain startup market has notably revitalized in the latter half of 2025. In the fall, the industry attracted the highest funding volumes in recent years, largely due to clarity in the rules of engagement: regulators are introducing clear standards (such as stablecoin laws and the prospect of approving Bitcoin ETFs), and major financial corporations are returning to the digital asset space. Consequently, venture capital inflow into the crypto segment has surged sharply.
Notably, one of the year’s largest venture deals outside the AI sector involved a crypto startup: the American project Polymarket raised around $2 billion (at an estimated valuation of about $9 billion) to develop a decentralized predictive markets platform. Infrastructure solutions for digital currencies are also starting to gain support— for example, the startup Hercle (USA), which is developing a platform for issuing stablecoins, recently raised approximately $60 million in funding. Overall, the cleansed crypto startups from speculative ballast are gradually restoring trust and once again attracting attention from venture funds and corporations. The involvement of traditional financial players and more transparent rules set the groundwork for further investment growth in this segment.
Local Market: Russia and the CIS
Despite external constraints, the startup ecosystem in Russia and neighboring countries is also striving to develop amidst the global upswing. Over the past year, several new venture funds have emerged in the region (with a total volume reaching tens of billions of rubles), and governmental institutions and large corporations have launched technology support programs—new accelerators, specialized funds, and grant competitions for innovative projects have been established. Venture investment volumes in the RF and CIS are still relatively modest by global standards, and significant barriers (high rates, sanctions, etc.) remain. Nevertheless, the most promising local startups continue to attract funding and develop, focusing on local market niches.
The formation of a local venture infrastructure is gradually creating a foundation for the future—by the time external conditions improve and global investors can return to the region more actively. Notably, in 2025, some restrictions for foreign investors wanting to invest in local projects were partially lifted, slowly rekindling foreign capital interest. Such local initiatives, despite geopolitical challenges, integrate Russian and neighboring markets into global trends and prepare them for participation in the new venture upswing.
Conclusion: Cautious Optimism
A moderately optimistic sentiment has taken hold in the venture capital industry. On one hand, the rapid rise in startup valuations—especially in the AI segment—draws parallels with the dot-com boom and serves as a reminder of the risks of market overheating. On the other hand, the current investment frenzy is channeling vast resources and talent into the development of new technologies, laying the groundwork for future innovative breakthroughs.
By the end of 2025, it became clear that the global startup market has been revived: record funding volumes are being reported, high-profile IPOs are on the horizon, and the largest funds have accumulated unprecedented pools of capital for investment. Yet, investors are acting more discerningly, primarily investing in the most promising projects with sustainable business models. The key question for the future remains—will high expectations from the AI boom be justified, and will other sectors become more attractive for capital? For now, appetite for innovation remains high, and market participants are looking ahead with measured enthusiasm, anticipating further balanced growth in the venture ecosystem.
