Global Startup and Venture Capital News as of October 20, 2025: The Return of Megafunds, Record AI Rounds, a Resurgence in IPOs, and Trends in the Global Venture Market
As of mid-October 2025, the global venture market is confidently recovering after a prolonged downturn in previous years. Investors worldwide are actively financing tech startups again — record deals are being signed, and initial public offering (IPO) plans are once again in focus. Major players are returning to the arena with large investments, and governments from various countries are enhancing support for innovation. As a result, private capital is gradually returning to the startup ecosystem, filling it with resources for new growth.
Venture activity is increasing across all regions. The United States continues to lead confidently (especially in the area of artificial intelligence), while investment volumes in startups are rapidly growing in the Middle East. In Europe, Germany has for the first time surpassed the United Kingdom in the volume of venture deals. India, Southeast Asia, and the Gulf countries are attracting record amounts of capital amid a slowdown in China. The startup ecosystems in Russia and the CIS countries are also striving to keep pace despite external constraints. Thus, a global venture boom is gaining traction, although investors remain selective and cautious in their actions.
Below are key events and trends shaping the venture market agenda as of October 20, 2025:
- The return of megafunds and large investors. Leading venture funds are raising unprecedented amounts of capital and sharply increasing investments, flooding the market with liquidity and rekindling risk appetite.
- Record rounds in AI and a new wave of unicorns. Unprecedented funding rounds are inflating startup valuations to unseen heights, especially in the artificial intelligence segment, leading to the emergence of new unicorns.
- Revival of the IPO market. Successful IPOs from several tech companies and new applications confirm that the long-awaited "window" for exits is still open.
- Diversification of sector focus. Venture investments are not only directed towards AI but also to fintech, climate and environmental projects, biotechnology, defense developments, and even crypto startups.
- A wave of consolidation and M&A deals. New large mergers, acquisitions, and strategic investments are reshaping the industry landscape, creating opportunities for exits and accelerated growth.
- Local focus: Russia and the CIS. Despite constraints, new funds and initiatives are being launched in the region to develop local startup ecosystems, attracting investor attention.
The Return of Megafunds: Big Money Back in the Market
The largest investment players are triumphantly returning to the venture scene, signaling a new increase in risk appetite. For example, American firm Andreessen Horowitz has announced the formation of a megafund worth ~$20 billion for investments in AI startups, while the Japanese conglomerate SoftBank is launching Vision Fund III with a capacity of around $40 billion, targeting advanced technologies (including artificial intelligence and robotics). Sovereign funds from the Gulf countries have also sharply increased their activity: they are pouring billions into tech projects and developing state megaprojects, creating their own tech hubs in the Middle East. Simultaneously, a multitude of new venture funds are being established worldwide, attracting significant institutional capital for investments in high-tech areas.
Renowned Silicon Valley firms are also expanding their presence. In the American venture sector, funds have amassed unprecedented reserves of uninvested capital ("dry powder") — hundreds of billions of dollars ready to be deployed as market confidence returns. The influx of "big money" is saturating the startup market with liquidity, providing resources for new funding rounds and supporting growth in valuations of promising companies. The return of megafunds and major institutional investors not only intensifies competition for the best deals but also instills confidence in the industry regarding the continued influx of capital.
Record Investments in AI and a New Wave of Unicorns
The artificial intelligence field is the main driver of the current venture surge, showcasing record funding volumes. Investors around the globe are eager to invest in AI startups, leading to unprecedented mega rounds. In the last quarter alone, company Anthropic raised approximately $13 billion, Elon Musk's xAI project received over $5 billion, and AI model developer OpenAI organized a funding round amounting to $40 billion (valuing the company at approximately $300 billion) — scales previously unmatched in the industry. Consequently, almost half of all venture capital in 2025 is allocated to the AI sector.
The high influx of funds is inflating valuations for young companies: AI startups often achieve "unicorn" status (valued over $1 billion) in record time. A new wave of highly valued companies has emerged, particularly in the generative AI and artificial intelligence infrastructure segments. Although some major investors have already warned of signs of a "hype bubble" at early stages (when any project tagged with AI receives excessive multipliers), the fear of missing the next revolution propels further capital inflow. As a result, the AI field is experiencing an unprecedented boom, creating generations of new technological leaders — provided they can validate their business models with real results.
The IPO Market Comes Back to Life: An Opportunity for Exits
The global market for public listings of startups is exiting its lull and gaining momentum. In recent months, several notable venture-backed companies successfully executed IPOs, receiving high valuations on the market. Investors are eager to buy shares of tech newcomers again, as evidenced by impressive debuts: for example, design developer Figma and fintech giant Circle entered the market with great success, and their shares surged hundreds of percent in the first days of trading. In 2025, the total number of IPOs has increased compared to last year, and in the third quarter, more than a dozen unicorn startups went public, with a combined market capitalization exceeding $90 billion at debut.
Venture investors view these signals as confirmation that the long-awaited "liquidity window" for exits is indeed open. Companies that postponed their IPOs during the market downturn are now renewing plans and submitting applications to regulatory bodies. Among the anticipated large IPOs is Swedish fintech decacorn Klarna, which is preparing to list at a valuation of around $14 billion, along with several other unicorns worldwide. The successes of these new listings not only allow founders and investors to realize profits but also restore confidence that the venture cycle can conclude with planned exits. The window of opportunity for investment exits has opened wide again, enabling a redistribution of capital to new projects.
Diversification of Investments: Not Just AI
In 2025, venture investments are covering a broader range of sectors and are no longer solely concentrated on artificial intelligence. Following last year's downturn, funding is reviving in other segments of the tech market, making the current growth more balanced. Funds are striving to diversify portfolios by allocating capital to promising projects in various areas. Key sectors attracting investor attention include:
- Fintech — new financial technology services and digital banks continue to attract capital amidst the demand for online services.
- Climate and environmental projects — clean energy solutions, carbon emission reductions, and eco-friendly technologies receive backing due to the emphasis on sustainable development (ESG).
- Biotechnology — investments in medicine and pharmaceuticals remain significant, particularly in the development of new drugs, genetic research, and longevity technologies.
- Defense and aerospace developments — startups in security, military technologies, and space are drawing attention in the context of increasing government contracts and geopolitical challenges.
- Crypto startups — after a decline in interest in previous years, cryptocurrency and blockchain projects have once again appeared on the radar of venture investors, partly due to the stabilization of the digital asset market.
Thus, venture capital is being directed into diverse sectors — from finance and health to climate and defense technologies. The strategy of broadening sector focus aims to mitigate risks of overheating in any one segment (such as AI) and to ensure a more sustainable development of the entire startup market.
Consolidation and M&A Deals: Larger Players on the Scene
High startup valuations and fierce competition for markets are propelling the industry toward consolidation. A wave of major mergers and acquisitions is once again coming to the forefront, reshaping the power dynamics in the tech sector. In the third quarter of 2025, numerous notable M&A transactions occurred, including several unicorns being acquired by strategic investors. Corporations seeking to gain promising developments and the unicorn tech firms merging to strengthen their positions are playing their part. For example, one of the market leaders in AI, OpenAI, is not only attracting record funding but is also acquiring smaller AI companies to expand its capabilities; in the fintech segment, major players are acquiring startups to integrate new services, while in biotech, pharmaceutical giants are actively buying developers of promising drugs.
Consolidation is transforming the landscape of the industry, consolidating key players and allowing the most successful startups to scale more rapidly under the wings of large corporations. For venture funds, the M&A wave means additional exit avenues: strategic deals often become an alternative to IPOs, bringing long-awaited profits to investors. While the overall volume of buyout deals may vary quarterly, the trend toward business consolidation is evident — the tech sector has entered a phase where cooperation and acquisitions are becoming an integral part of the growth strategy.
Russia and the CIS: Local Initiatives in the Context of Global Trends
In Russia and the CIS countries, despite external constraints, there is also a revival of venture activity. According to industry research, in the first half of 2025, the volume of venture investments in Russia nearly doubled compared to the previous year (albeit from a low base), reaching tens of millions of dollars. However, the overall number of deals has decreased, indicating a new trend: there is more money, but fewer projects — meaning that investors are betting only on the strongest teams. The average investment size has increased, and startup requirements have tightened — it has become more challenging to pass selection, but projects that gain trust are attracting significantly larger capital.
New funds and programs aimed at supporting tech companies are being launched in the region. Government institutions and large corporations are increasingly participating in the development of the local startup scene: sector-specific accelerators, regional venture funds (for example, Moscow's AI development fund, sector-specific funds from state corporations), and innovation clusters are being created. These initiatives are designed to compensate for the outflow of foreign capital and integrate local projects into global trends. Despite sanctions, Russian and neighboring ecosystems are trying to follow global trends — from artificial intelligence to new industrial technologies. The local venture market is showing cautious growth and gradually restoring investor trust in funding competitive startups within the country.
Cautious Optimism and Quality Growth
By mid-autumn 2025, the venture market is displaying moderately optimistic sentiments: successful IPOs and large deals indicate that the downturn period is behind, although investors continue to act selectively and prefer projects with sustainable business models. Large infusions of capital into the AI sector and other industries instill confidence, but funds are striving to diversify investments and maintain stricter risk controls so that the new rise does not lead to overheating. As a result, the industry is entering a new phase of development with a focus on quality, balanced growth. Market participants are cautiously optimistic: there is an understanding that the next wave of innovation could yield significant achievements if a reasonable balance between ambitious investments and disciplined risk assessment is maintained.
