Major Funding Rounds for Startups Around the World: Growth in AI Company Financing, the Return of Mega Funds, and a New Wave of IPOs by the End of 2025. A Detailed Overview for Venture Investors.
As of late October 2025, the venture market is showing a confident resurgence. Investors are becoming active again, pouring record sums into promising tech startups, particularly in the artificial intelligence (AI) sector. After several years of relative caution, large funding rounds have returned, with several companies attracting hundreds of millions and even billions of dollars in investments. At the same time, a new wave of IPOs is emerging, signaling that startups are once again ready to enter public markets under improved conditions.
The Venture Market Rebounds by the End of 2025
According to industry analysts, the global venture investment volume reached approximately $97 billion in the third quarter of 2025—an increase of several percentage points compared to the previous year. Thus, the market posted its best quarterly performance since 2021, with each of the last four quarters surpassing the $90 billion mark. After a downturn in 2022-2023, startup funding has been steadily rising for four reporting periods in a row, signaling a return of investor confidence. The primary contribution to this growth came from mega deals in the AI sector, but the rebound is noticeable across other stages as well: late-stage investments have shown significant year-on-year growth. Two-thirds of venture capital in the recent quarter went to startups in the U.S.; however, an uptick is also observed in Europe, Asia, and other regions, reflecting the global nature of the recovery.
Record Investments in AI Continue
The AI sector remains the main magnet for venture capital in 2025. According to PitchBook estimates, AI startups in the U.S. have raised over $160 billion in investments since the beginning of the year, accounting for about two-thirds of all venture fund investments. By the end of the year, global investments in AI companies could exceed $200 billion—an unprecedented figure for the industry. The total valuation of the ten largest AI startups (including OpenAI, Anthropic, xAI, and others) has approached $1 trillion. Investors attribute the frenzy to artificial intelligence's potential to radically improve efficiency across many sectors of the economy, opening multi-trillion-dollar markets ranging from software development automation to virtual assistants. Despite concerns about overheating and a potential “bubble,” venture funds continue to actively invest in AI startups, seeking not to miss out on a new technological revolution.
Major Rounds and New Unicorns
In recent weeks, several startups have announced significant funding rounds, confirming the return of “big checks” to the market:
- Harvey (USA) — raised $150 million at an $8 billion valuation to develop a legal AI platform (lead investor: Andreessen Horowitz).
- Synthesia (UK) — $200 million at a $4 billion valuation to scale its AI video generation service (round led by GV — the venture arm of Alphabet).
- Fireworks AI (USA) — $250 million in a Series C round (approximately $4 billion valuation) to expand its AI platform capabilities in genomics and healthcare.
- Legora (Sweden) — $150 million (valuation of $1.8 billion) to develop legal AI software; the startup was founded in 2023 and has become one of the new unicorns in Scandinavia.
- OpenAI — raised approximately $40 billion in total funding from investors (including a mega-investment from SoftBank), making it the world’s most valuable private company (approximately $500 billion valuation) and a potential candidate for a record IPO.
- Polymarket (USA) — the crypto platform raised $2 billion in October (valuation of $9 billion) with participation from Intercontinental Exchange (ICE), making it one of the largest rounds of the year outside the AI space.
Capital Concentration: Mega Rounds in Focus
The rapid growth in investments is accompanied by a high concentration in a limited circle of companies. About 70% of all investments in American startups in 2025 were in large rounds of $100 million or more—a record share comparable only to the 2021 boom. Globally, this figure reached approximately 60%. Investors are increasingly making large bets on leaders: only 18 companies received a third of all venture money in the third quarter, each attracting $500 million or more. Capital is primarily concentrated around AI flagship companies: the eight largest AI players have absorbed about 62% of sector investments this year. Just OpenAI, which received around $40 billion from SoftBank, accounted for a substantial portion of all mega rounds. While late-stage investments are thriving due to record deals, funding for early-stage startups remains stable, albeit without similar spikes. Concurrently, the market for mergers and acquisitions (M&A) is revitalizing, creating additional exit opportunities for investors and consolidating the industry.
The Return of Mega Funds and Investor Confidence
Concurrently, “mega funds” are making a comeback—large venture players are actively raising capital for new investments again. Following a downturn in venture fundraising in 2022-2024, leading funds are resuming capital raising, demonstrating confidence in the market's prospects. For instance, in October, Sequoia Capital announced the creation of two new funds totaling $950 million (including $750 million for early-stage and $200 million for seed investments). The emergence of such funds indicates that startups will soon have more opportunities to secure funding, while major investors are preparing for the next wave of technological growth, having amassed significant “war chests” of capital.
A Resurgence of IPOs and Exit Prospects
Against the backdrop of rising valuations and capital influx, startups are once again exploring public markets. Following a two-year lull, a resurgence of IPOs is emerging as a pathway for venture investors to exit. Insider information suggests that OpenAI is considering a public stock offering as early as 2026, with a potential valuation reaching up to $1 trillion—a historic level for the tech sector. In the crypto industry, ConsenSys (the developer of the MetaMask wallet) has hired JPMorgan and Goldman Sachs to prepare for its historic IPO planned for 2026—this would be the first public offering of a major blockchain developer associated with the Ethereum ecosystem.
Earlier this year, several high-tech firms successfully went public, such as the stablecoin issuer Circle (valued at approximately $7 billion) and crypto exchange Bullish, demonstrating the restoration of investor appetite for new listings. Improved market conditions and the gradual clarification of regulatory requirements (e.g., the recent resolution of SEC claims against ConsenSys regarding its services) add confidence to companies planning IPOs. Major startups are starting to see the public market as a viable option for raising capital and providing liquidity for investors, setting a trend for an increase in notable exits in the coming years.
Beyond AI: Healthcare, Climate, and Space
Despite the dominance of AI projects, significant funds are also being directed to other high-tech sectors. Healthcare and biotechnology attracted about $15-16 billion in venture capital in the third quarter—ranking third after AI and IT infrastructure. For example, Fireworks AI raised $250 million to develop an AI platform for genomic medicine, advancing solutions at the intersection of technology and healthcare. Investors are also supporting climate and “green” projects: the Australian startup Uluu raised 16 million Australian dollars to develop biodegradable plastics from seaweed, while Indian company Tsuyo Manufacturing received 40 million rupees to expand production of electric vehicle components. These deals are modest in size but reflect the sustained interest of venture funds in sustainable development and eco-friendly technologies.
Additionally, there is growing attention to space and hardware startups. Bulgarian company EnduroSat raised $104 million (with participation from Google Ventures, Lux Capital, and others) to scale production of small satellites, responding to market demand for affordable space communications. Overall, “hard” deep tech is also on the rise: in 2025, major rounds were secured by manufacturers in robotics, semiconductors, and quantum computing systems, collectively raising tens of billions of dollars. While investment volumes in these sectors lag behind the AI phenomenon, venture capital in 2025 is being distributed across the entire spectrum of innovations—from medicine and eco-tech to space—supporting diverse technological progress.
Crypto Startups Return to the Game
Following a prolonged downturn due to the “crypto winter,” investors are showing renewed interest in blockchain startups. In October, venture financing for crypto industry companies saw a notable increase: in just the first week of the month, approximately $3.2 billion was invested across 20 projects. The leader was the American project Polymarket, which raised a record $2 billion (valuation $9 billion) with support from exchange operator ICE—one of the largest deals of the year outside the AI sector. Following that, the prediction platform Kalshi secured $300 million (valuation $5 billion), confirming the market's readiness to invest in new financial technologies at the intersection of traditional markets and cryptocurrencies.
Overall, infrastructure solutions for digital assets are also finding support from venture funds. For instance, U.S. startup Hercle raised $60 million to develop infrastructure for stablecoins, and several other projects received funding for developing blockchain services for banks and businesses. Simultaneously, leading players in the crypto market are reaching a new level of maturity—the upcoming IPO of ConsenSys, accompanied by major banks, signals a convergence of the crypto industry with Wall Street. Easing regulatory uncertainty in the U.S. and increasing interest from institutional investors (including the participation of traditional financial giants in rounds) reinforce the return of capital to the Web3 sphere.
Conclusion: Cautious Optimism
After a year of impressive deals and resumed growth, participants in the market are adopting a cautiously optimistic stance. On one hand, the unprecedented surge in valuations and funding volumes—especially in the AI segment—draws parallels with the dot-com bubble of two decades ago. However, many venture capitalists note that such “bubbles” have positive effects: they concentrate vast capital and talent in new areas, ultimately leading to technological breakthroughs, even if some projects inevitably fail. As is said in the industry, one or two successful giants will pay off for dozens of failures.
As we approach 2026, venture investors across the globe are striving to find a balance between the desire not to miss the next technological revolution and a healthy assessment of risks. The startup market has clearly revived: new records are being set, yet investors have also become more selective, focusing on the most promising areas. The main intrigue remains whether the high expectations from the AI boom will be justified and whether other sectors can close the gap in raised funds. For now, one thing is clear: the appetite for innovation is once again at an all-time high, and the venture ecosystem is entering the new year with a definite surge of energy and capital.
