Global Overview of Venture Investments and Startups as of 22 October 2025: Mega Rounds in AI, Growing Interest in Fintech, Climate and Biotech Projects, Return of Mega Funds, and Revival of the IPO Market.
By the end of October 2025, the global venture market is demonstrating a confident recovery following a prolonged decline in previous years. Investors worldwide are once again actively financing technology startups, with record deals being concluded and plans for companies to go public (IPOs) back in the spotlight. Major players have returned to the arena with substantial investments, while governments from various countries are ramping up support for innovation. As a result, private capital is flowing back into the startup ecosystem, providing resources for a new phase of growth. According to industry analysts, the total volume of venture investments worldwide increased by nearly 40% year-on-year in the third quarter of 2025, vividly highlighting the resurgence of risk appetite.
Growth in venture activity is being observed across all regions. The US continues to lead (especially in the AI segment), while investment volumes in startups in the Middle East have doubled compared to last year. In Europe, Germany has surpassed the UK for the first time in the number of venture deals. Asia is experiencing a relative decline in China amid regulatory uncertainty, while India, Southeast Asia, and the Gulf regions are attracting record capital. Moreover, the investment boom is reaching new frontiers: amid global growth, tech hubs are emerging in Africa and Latin America (for instance, Africa recently saw the largest $100 million investment in the electric mobility sector). The startup ecosystems in Russia and the CIS countries are also striving to keep pace, despite external constraints. A global venture boom in early-stage investments is forming, although investors continue to act selectively and cautiously.
Below are the key events and trends shaping the venture market agenda as of 22 October 2025:
- The return of mega funds and large investors. Leading venture funds are attracting unprecedented amounts of capital and sharply increasing investments, filling the market with liquidity and amplifying risk appetite.
- Record rounds in AI and a new wave of "unicorns." Unprecedented investment sizes are inflating startups' valuations to unprecedented heights, particularly in the artificial intelligence segment.
- Revival of the IPO market. Successful public offerings of technology companies and new listing applications confirm that the long-awaited "window" for exits is once again open.
- Boom in investments in defence technologies. The geopolitical landscape is stimulating increased interest in startups in the defence and security sectors, which are coming to the forefront of the venture agenda.
- Diversification of sector focus. Venture capital is being directed not only to AI but also to fintech, climate projects, biotechnology, defence developments, and even crypto startups.
- A wave of consolidation and M&A deals. New mergers, acquisitions, and strategic investments are reshaping the industry landscape, creating exit opportunities and accelerating company growth.
- Local focus: Russia and the CIS. Despite challenges, new funds and initiatives are being launched in the region to develop local startup ecosystems, attracting attention from investors.
The Return of Mega Funds: Big Money Back in the Market
The largest investment players are triumphantly returning to the venture stage, heralding a new surge in risk appetite. For example, the American firm Andreessen Horowitz has announced the formation of a new mega fund worth approximately $20 billion for investments in promising AI startups, while the Japanese conglomerate SoftBank is launching Vision Fund III, sized around $40 billion, focused on cutting-edge technologies. Sovereign funds from Gulf countries have also significantly ramped up activity, injecting billions into technology projects and initiating government mega-programmes, thereby creating their own tech hubs in the Middle East. Meanwhile, dozens of new venture funds are being established worldwide, attracting substantial institutional capital for investments in high-tech sectors.
The return of such "big money" from prominent Silicon Valley funds and global investors not only intensifies competition for the best deals but also instills confidence in the industry regarding further capital inflow. A record amount of dry powder—hundreds of billions of dollars—has accumulated in the American venture sector, ready to be deployed as new opportunities arise. These large funds flood the market with liquidity, providing resources for significant funding rounds and supporting the growth of promising companies.
Record Investments in AI and a New Wave of Unicorns
The artificial intelligence sector is the principal driver of the current venture surge, demonstrating unprecedented financing volumes. Investors worldwide are eager to invest in leaders of the AI sector, directing colossal funds into the most promising projects. For instance, the xAI project founded by Elon Musk has raised around $10 billion in total investment, while the AI model developer OpenAI has secured approximately $8–9 billion in funding, with the company valued around $300 billion. Rumours are circulating that one of the companies developing infrastructure for AI is negotiating for a multi-billion round at an exceptionally high valuation. This investment frenzy has spawned a new cohort of "unicorns"—startups valued at over $1 billion.
This powerful influx of capital rapidly escalates the valuations of young AI companies. AI startups are now reaching "unicorn" status at record speeds, particularly in the segments of generative AI and related infrastructure. Although some experts warn of signs of overheating at early stages (when any project labelled as AI is awarded inflated multiples), the fear of missing out on the next technological revolution fuels further capital inflow. According to estimates by the Financial Times, the volume of venture investments in AI startups in 2025 will exceed $200 billion—nearly half of the entire market. As long as investor appetite for AI projects remains high, the artificial intelligence space is experiencing an unprecedented boom.
The IPO Market Comes Alive: A Window of Opportunities for Exits
The global market for initial public offerings of startups is emerging from a lull and gaining momentum. In recent months, several notable venture-backed companies have successfully gone public, receiving high valuations on the stock market. Investors are once again prepared to purchase shares of tech newcomers, as evidenced by impressive debuts: for example, software design developer Figma and fintech giant Circle went public with remarkable success—their capitalisation skyrocketed during the first days of trading. Throughout 2025, the total number of tech IPOs has significantly increased compared to last year, with more than a dozen unicorn startups listed on the global market in the third quarter alone, amassing a cumulative capitalisation exceeding $90 billion at the time of listing.
Venture investors perceive these signals as confirmation that the long-awaited "liquidity window" for exits has indeed opened. Many companies that had postponed their IPOs during the downturn of 2022–2023 are now resuming IPO plans and applying to regulators. Among the highly anticipated debuts are the Swedish fintech unicorn Klarna, preparing for a listing with an estimated valuation of approximately $14 billion, as well as several other tech unicorns in various regions of the world. The success of these new listings not only allows founders and funds to secure profits but also restores confidence that the venture cycle can once again conclude with planned exits. The window of opportunities for investment exits is wide open, facilitating a flow of capital into the next generation of startups.
Defence Technology Boom: A New Priority for the Venture Market
Against a backdrop of geopolitical tension, the niche for defence and military technologies is rapidly growing. Venture investors are increasingly financing startups related to defence, security, and aerospace. In Europe, investment in defence startups has skyrocketed since the beginning of 2022; just in the first months of 2025, companies in this sector attracted around €1.4 billion, which is significantly higher than in previous periods. Increased interest is being fueled by government contracts and the search for innovative solutions for the military—from unmanned drones to biotechnological sensors. American funds are also not remaining on the sidelines: new players aimed at military technologies are emerging in the US, while some existing corporations (such as major defence contractors) are launching their own venture divisions to scout promising developments.
The swift influx of capital into the defence-tech sector is establishing a new priority in the venture market. Startups that were previously on the periphery of interest (military AI systems, robotics for the army, cybersecurity, etc.) are now coming to the forefront. Although some analysts warn that the excitement surrounding defence technologies may reach a peak, investors are keenly willing to invest in this area, given the high demand from government clients and the acute relevance of these developments. The boom in defence startups reveals how quickly venture capital adapts to new global challenges, pivoting towards areas promising significant increases in demand.
Diversification of Investments: Not Just AI
In 2025, venture investments are encompassing an increasingly wider array of industries and are no longer solely focused on artificial intelligence. Following last year's downturn, funding is reviving in other segments of the tech market, making the current upswing more balanced. Funds are aiming to diversify their portfolios, allocating capital to promising projects across various fields. Key areas attracting investor attention include:
- Fintech: new financial technology services and digital banks continue to attract significant investment amid sustained demand for online services. Global investment in the fintech sector is once again reaching tens of billions of dollars, demonstrating a "second wind" for the industry after the downturn of 2022–2023.
- Climate and "green" projects: solutions in clean energy, emissions reduction, and eco-technologies are receiving support thanks to the prioritisation of sustainable development (ESG). For instance, a coalition of private venture firms led by Bill Gates' Breakthrough Energy Ventures has formed a new fund of around $300 million for financing climate startups, planning its first investments shortly.
- Biotechnology, medicine, and health: investments in the development of new medications, genetic research, life-extension technologies, and medical devices remain substantial. Pharmaceutical giants and specialised funds are actively investing in biomedical and healthtech startups, anticipating breakthrough products and huge market potential. For example, Finnish smart ring developer Oura attracted around $900 million at a valuation of $11 billion, demonstrating investor interest in health wearable devices.
- Cryptocurrencies and blockchain: after a decline in interest in recent years, crypto startups have re-emerged on the radar of venture investors. The stabilisation of the digital asset market and progress in regulation have attracted attention to new projects in decentralised finance, blockchain infrastructure, and Web3.
Thus, venture capital is now being directed into a wide variety of sectors—from finance and energy to medicine and crypto technologies. The strategy of expanding sector focus aims to mitigate overheating risks in specific segments (such as AI) and ensure the more sustainable development of the entire startup ecosystem.
Consolidation and M&A Deals: The Scalability of Players
High valuations of startups and fierce competition for new markets are pushing the industry toward consolidation. A wave of significant mergers and acquisitions is once again taking centre stage, altering the power dynamics in the tech sector. In the third quarter of 2025, numerous notable M&A transactions occurred, including the acquisition of several unicorns by strategic investors. Large corporations seeking to acquire promising developments play a role in this consolidation, while successful startups are merging to strengthen their market positions.
Major tech companies are actively acquiring innovative startups to expand their product lines and outpace competitors. For example, market leaders in AI are purchasing small AI companies to strengthen their technologies; in fintech, banks and payment systems are acquiring young services for the integration of new features; and in biotech, pharmaceutical companies are buying developers of promising drugs. This consolidation is reshaping the industry landscape, enlarging key players and allowing the most successful projects to scale rapidly under the wing of larger partners. For venture funds, the surge in M&A denotes additional exit pathways: strategic deals are increasingly becoming an alternative to IPOs, yielding overdue profits for investors. While the overall volume of buyout transactions may fluctuate quarterly, the trend towards business consolidation is clear—mergers and acquisitions have once again become an integral part of growth strategy in the tech sector.
Russia and the CIS: Local Initiatives Amid Global Trends
In Russia and neighbouring countries, despite external constraints, a revival of venture activity is being observed. Data from industry research indicates that in the first half of 2025, the volume of venture investments in the Russian Federation nearly doubled compared to the same period last year (although initial figures remained modest), reaching approximately $78 million. However, the total number of deals has decreased, indicating a new trend: there is more money, but fewer projects. In other words, investors are placing bets only on the strongest teams. The average round size has grown, and requirements for startups have tightened: it is now more challenging to qualify, but those projects that manage to earn trust attract significantly larger capital.
New funds and programmes aimed at supporting technology companies are being established in the region. Government institutions and large corporations are increasingly involved in developing the local startup scene: industry accelerators, regional venture funds (such as the Moscow AI development fund or corporate funds within state-owned companies), and innovation clusters are being created. These initiatives aim to compensate for the outflow of foreign capital and integrate local projects into the global momentum. Despite sanctions barriers, the Russian and CIS ecosystems are striving to follow global trends—from artificial intelligence to new industrial technologies. Gradually, the local venture market is regaining confidence: investors are showing cautious interest in competitive startups within the country and are preparing to finance their growth.
Cautious Optimism and Sustainable Growth
By the end of autumn 2025, moderately optimistic sentiments have settled in the venture industry. Successful IPOs and major deals signal that the period of decline is behind, although investors still prefer to act selectively and concentrate on projects with sustainable business models. Large capital inflows into AI, fintech, defence technologies, and other sectors instil confidence in further growth; however, funds are increasingly scrutinising risks, striving to prevent market overheating. The industry is entering a new phase of development, focusing on quality and balanced growth. Market participants are cautiously optimistic: there is an understanding that the upcoming wave of innovation has the potential to yield significant results if a reasonable balance is maintained between ambitious investments and disciplined risk assessment.
