Current Startup and Venture Capital News as of October 30, 2025: Record AI Rounds, New Venture Funds, M&A Deals, Mega Investments, and Key Market Trends. Discover where venture capital is heading worldwide.
The global startup and venture capital market continues to exhibit high activity amidst impressive figures in the tech sector. As of Thursday, October 30, 2025, several trends are capturing the attention of venture investors: record funding levels for AI startups, the launch of new large venture funds, and a series of multimillion-dollar investment rounds. Below, we will delve into the key startup news, deals, and trends shaping the current landscape of the venture market.
Record Investments in AI Startups Alleviate Bubble Concerns
Investments in startups related to artificial intelligence (AI) are breaking records. According to industry analysts, over $160 billion has already been invested in AI startups since the beginning of 2025, and this figure may exceed $200 billion by the end of the year. Such enormous capital infusions dispel previous concerns about an "AI bubble." The financial results of technology leaders confirm that the surge in valuations is backed by real revenues. For instance, this week, NVIDIA became the first company in history to exceed a market capitalization of $5 trillion, highlighting that the excitement around AI is underpinned by tangible commercial outcomes. Investors are increasingly confident that the current surge in interest toward AI will transform into a sustainable growth cycle based on fundamental metrics rather than mere hype.
Megarounds Dominate, Venture Capital Concentrates
The venture market is becoming increasingly polarized: the lion's share of funding is directed toward the largest deals. In the third quarter, nearly half (approximately 46%) of all global venture investments were allocated to AI companies. Notably, nearly one-third of the global investment volume for the quarter went to just one company – the generative AI developer Anthropic, which raised around $13 billion. Overall, so-called "megarounds" (funding rounds of over $100 million) account for a record 60% of all venture investments worldwide (up to 70% in the U.S.). The current year is on track to match the peak levels of 2021 in total large round volumes. Unlike the 2021 boom period when funds were distributed across numerous sectors and stages, capital is now primarily concentrated around a few mature AI companies. Smaller startups and traditional sectors (such as cybersecurity or medtech) are attracting significantly less attention from investors.
New Venture Funds Are Bringing "Dry Powder" to the Market
Despite the selective nature of investors, new mega funds – significant-sized investment funds ready to finance groundbreaking projects – continue to emerge within the startup ecosystem. Legendary Sequoia Capital has announced the launch of two new funds totaling $950 million aimed at early-stage investments (including a separate $200 million fund for seed investments). The thematic focus of these funds is shifting toward future technologies: for instance, venture firm Town Hall Ventures has raised $440 million to invest in AI solutions in healthcare and improve access to medicine for underprivileged communities. Such examples demonstrate that leading venture players still have enough "dry powder" – capital reserved for promising venture investments, particularly in artificial intelligence, biotechnology, and climate innovations.
Largest Rounds of the Week: New Unicorns and Decacorns
The past week witnessed several impressive funding rounds for startups, reinforcing confidence in the market. Among the most notable deals:
- Crusoe (USA) – raised $1.375 billion in a Series E round, achieving a valuation of over $10 billion. The startup develops infrastructure for energy-efficient data centers for AI tasks and has become one of the new "decacorns" (companies valued above $10 billion).
- Redwood Materials (USA) – secured $350 million in funding (Series E round) to expand the production of battery materials and battery recycling. The capital will help accelerate the startup's development of energy storage technologies, crucial for the electric vehicle and sustainable energy markets.
- Mercor (USA) – an AI platform for talent matching, closed a Series C round at $350 million, achieving a valuation of $10 billion. Within just two years, the startup has grown into a global player in hiring experts to train neural networks and has become one of the fastest-growing unicorns.
These deals underscore the market's readiness to support both mature and rapidly growing startups with the potential to transform industries. Notably, almost all of the largest rounds are connected to AI or related fields, reflecting current investor priorities. Traditional sectors such as biotechnology or fintech remain on the radar; however, the largest sums are going to leaders in the most promising directions.
OpenAI: Restructuring and Largest Valuation in Private Markets
One of the pivotal events in the market was the completion of restructuring at OpenAI – the creator of ChatGPT and a leader among AI startups. OpenAI underwent a structural transformation: a nonprofit foundation was created to control 26% of the voting rights, while the share of the largest shareholder, Microsoft, was lowered to 27%. This enhanced OpenAI's independence and increased public scrutiny of its activities, directing future profits toward charitable purposes. Meanwhile, the company maintained a close partnership with Microsoft but gained greater flexibility for attracting external capital. OpenAI's valuation in the private sector has reached a record $500 billion, making it the most valuable private company. Management notes that the restructuring has already simplified attracting new investments – the CFO emphasized that removing previous restrictions facilitates negotiations with investors. Thus, OpenAI is strengthening its position for further growth without going public, setting a precedent for combining commercial and nonprofit goals in a large tech startup.
M&A Deals: Consolidation in High Tech
Against the backdrop of a venture boom in the AI sector, consolidation among tech players is also on the rise. The largest M&A deal of the week was the merger of two American chip manufacturers – Skyworks Solutions and Qorvo. The merger, valued at $22 billion, will create a formidable supplier of radio-frequency chips for smartphones, IoT devices, and 5G networks. The deal aims to strengthen their position against Asian competitors and optimize R&D expenditures, though regulatory scrutiny may arise due to market concentration. This example reflects a trend where large tech firms are seeking to increase their scale and capabilities through mergers, particularly in the hardware segment, which is vital for the AI industry.
Meanwhile, corporations are actively collaborating with startups, investing in new directions. Defense giant Northrop Grumman announced a strategic partnership with a young space startup to develop satellites with AI design – an example of how large companies seek innovations at the intersection of their own R&D and the startup ecosystem. While the number of billion-dollar "exits" (sales of startups or IPOs) remains limited, such deals indicate existing exit pathways for investors and the interest of strategic players in the cutting-edge technologies of startups.
New Trends: From Renewable Energy to Neurointerfaces
Among other trends this week is a focus on sustainability and breakthrough technologies. OpenAI co-founder and CEO Sam Altman called for the U.S. to double its investments in renewable energy (to 100 GW of new capacity annually) to outpace China in the race for energy dominance. This call illustrates how AI industry leaders emphasize the connection between technology and global challenges, stimulating support for "green" startups and infrastructure projects.
Continuing with the theme of innovation, Sam Altman himself took on the role of investor and co-founder in the new startup Merge Labs, which is working on a "mind-reading" interface. The Merge Labs project is developing a non-invasive neurointerface capable of reading brain activity using ultrasound without surgical implants – in contrast to Elon Musk's Neuralink approach. The startup aims to raise up to $250 million in funding and is already considered one of the most ambitious projects in neurotechnology and AI. Altman's involvement is a testament to venture capital's interest in the new generation of "deep" technologies at the intersection of biology and artificial intelligence.
Looking Ahead
The confluence of all these events confirms that the global startup ecosystem is on the rise, although with certain shifts in structure. Venture investors are actively deploying capital, particularly in the fields of AI, climate technologies, and biomedicine. The main trend is the concentration of resources around leaders and the most promising projects capable of scaling and defining industry development. For entrepreneurs, this means the necessity to clearly demonstrate uniqueness and growth potential to attract attention amidst a decrease in smaller deals. At the same time, large funds, armed with new billions, are searching for the next "unicorn" or technological breakthrough.
As we approach the end of 2025, the venture capital market views the future with cautious optimism: despite uncertainties, the tech sector proves its resilience. The successes of AI companies and sustained demand for innovation create a foundation for new venture triumphs. Venture investors and funds are poised to continue financing groundbreaking startups, driving global competition for the next big success. It is evident that topics of artificial intelligence, climate initiatives, and advanced technologies dominate the startup and venture market news – and this trend seems likely to persist into the next year.
