Key Startup and Venture Capital News as of 16 December 2025: Record AI Rounds, IPO Revival, Mega Deals, and Global Venture Market Trends for Investors and Funds.
By the end of 2025, the global venture capital market is entering a new growth phase, leaving behind several years of decline. In the third quarter of 2025, investments in tech startups reached approximately $100 billion, which is 40% more than last year. By the end of the year, this upward trend has only intensified: in November alone, startups worldwide attracted around $40 billion in funding (an increase of 28% year-on-year). The protracted "venture winter" of 2022–2023 is a thing of the past — private capital is rapidly returning to the tech sector. Large funding rounds and the launch of new mega funds indicate a renewed risk appetite among investors, although they remain selective, primarily investing in promising and resilient projects.
The surge in venture activity is being felt across all regions of the globe. The United States continues to lead, particularly due to substantial investments in the artificial intelligence sector. In the Middle East, the volume of deals has surged thanks to the activation of sovereign wealth funds, while Europe has seen Germany surpass the UK in total venture capital raised for the first time in a decade. In Asia, growth is shifting from China to India and Southeast Asian countries, compensating for the relative cooling of the Chinese market. Additionally, IPO plans from giants like SpaceX in 2026 point towards a renewed confidence in significant public market exits.
Below, we examine the key news and trends in the venture market as of 16 December 2025:
- Return of Mega Funds and Major Investors. Leading venture funds are raising record amounts of capital and are once again saturating the market with liquidity, heating up risk appetite.
- Record Rounds in AI and New Unicorns. Unusually large funding rounds are driving valuations of startups to record heights, particularly in the AI segment, creating a wave of new unicorns.
- IPO Market Revival. Successful public market exits of tech companies and an increase in new listing applications confirm that the long-awaited "window of opportunity" for exits is open once more.
- Investment Diversification. Venture capital is not only flowing into AI but is also actively funding fintech, climate and "green" technologies, biotech, medtech, and even crypto startups.
- Wave of Consolidation and M&A Deals. Major mergers, acquisitions, and strategic investments are reshaping the industry landscape, creating new opportunities for exits and accelerated company growth.
- Local Focus: Russia and CIS Countries. Despite external restrictions, new funds and initiatives are being launched in the region to develop local startup ecosystems, gradually attracting investor attention.
Return of Mega Funds: Big Money Back in the Market
The largest investment players are triumphantly returning to the venture arena, signalling a new surge in risk appetite. The Japanese conglomerate SoftBank is experiencing a "renaissance," making substantial bets on tech projects in AI: its Vision Fund III, with an amount of around $40 billion, is already investing in promising areas after updating its portfolio. At the same time, the major firms of Silicon Valley have amassed record reserves of uninvested capital ("dry powder") — hundreds of billions of dollars ready to be deployed as the market strengthens. In addition, sovereign funds from Gulf countries are becoming active, pouring billions into innovative programmes and transforming the Middle East into a powerful tech hub. Several well-known venture firms that previously paused are also returning with new funds (albeit smaller than before) and more cautious strategies. The return of "big money" is already noticeable: the market is filling with liquidity, competition for the best deals is intensifying, and the industry is receiving a much-needed boost of confidence regarding further capital influx.
Record Investments in AI: New Wave of Unicorns
The artificial intelligence sector remains the foremost driver of the current venture boom, exhibiting record funding volumes. Investors worldwide are allocating colossal sums to the most promising AI projects, aiming to secure positions among the leaders of this emerging market. In recent months, several startups have attracted unprecedentedly large funding rounds: for instance, Elon Musk's xAI secured about $10 billion, while Jeff Bezos's new startup Project Prometheus raised over $6 billion at the outset. Such mega rounds confirm the excitement surrounding AI technologies and elevate company valuations to unprecedented heights, resulting in dozens of new unicorns. Financing is not limited to applied AI services but also encompasses the infrastructure supporting them — from the production of specialised chips and cloud platforms to data centre energy supply tools. It is estimated that total investments in the AI sector surpassed $120 billion in 2025 (more than half of all venture investments for the year). While some experts warn of overheating risks, investor appetite for AI startups remains strong for now.
IPO Market Revives: "Window of Opportunity" for Exits is Open
The global market for initial public offerings (IPOs) is emerging from a prolonged lull. In Asia, a number of major tech companies successfully listed in Hong Kong, collectively attracting billions in investment and reaffirming investors' readiness to participate in new listings. In North America and Europe, the situation is also improving: several tech startups have successfully debuted on the stock market, such as fintech company Chime and design platform Figma, demonstrating significant stock price growth in their early trading days.
New high-profile exits are on the horizon. In the second half of 2025, other unicorns, including payment service Stripe, are preparing for public offerings. The cryptocurrency sector is also gaining momentum: Circle successfully executed an IPO in summer, while crypto exchange Bullish has applied for a listing in the US, targeting a valuation of around $4 billion. Notably, the anticipated IPO of SpaceX holds a special place in expected events. The company conducted an internal stock sale at an estimated value of ~$800 billion and has officially announced plans to go public in 2026. If this listing occurs, it could become one of the largest in history, underscoring investor faith in significant exits. The return of IPOs is crucial for the venture ecosystem: successful public exits allow funds to realise profits and reallocate capital to new projects, completing the investment cycle.
Investment Diversification: Not Just AI
Venture investments in 2025 are targeting an increasingly broad range of industries, no longer limited to artificial intelligence alone. Following the downturn of previous years, fintech is regaining momentum: substantial rounds are occurring not only in the US but also across Europe and emerging markets, fostering the growth of new digital financial services. Concurrently, interest in climate and "green" technologies is surging: projects in renewable energy are attracting significant investment, following the global trend towards eco-technologies.
Investor appetite for biotechnology has returned. The emergence of new medical developments and platforms is attracting capital once more as the industry begins to recover from periods of depreciated valuations. Additionally, amid heightened attention to security, more funding is being directed towards defence-tech projects. The expansion of sectoral focus indicates that investors are seeking new growth opportunities beyond the overheated AI segment, rendering the entire startup ecosystem more resilient.
Mergers and Acquisitions: Industry Consolidation
Large merger and acquisition deals, as well as strategic alliances between tech companies, are back on the agenda. Major players are on the lookout for new assets: for example, Google has agreed to acquire the Israeli cybersecurity startup Wiz for a record $32 billion — a first for the Israeli sector. This wave of consolidation is reshaping the industry landscape: more mature companies are increasing their presence, young startups are integrating into corporations for accelerated growth, and for venture funds, M&A is becoming an alternative exit strategy and profit realisation aside from IPOs.
Russia and CIS: Local Initiatives Amid Global Trends
Despite external sanctions and limited access to international capital, there is a gradual revival of startup activity in Russia and neighbouring countries. New local funds, accelerators, and initiatives to support tech projects are being launched (with active participation from corporations and the government). There are already examples of successful exits: some companies have attracted capital from the Middle East or found strategic buyers. While investment volumes in the CIS are still far more modest than global levels, the local venture ecosystem strives to leverage the overall market revival and build a foundation for future growth.
Conclusion: Cautious Optimism on the Threshold of 2026
As 2025 draws to a close, the prevailing mood in the venture sector is one of moderated optimism. Investors, having learnt from past years, are more discerning in their evaluations of startups and are betting on more viable business models. Growth momentum within the ecosystem has resumed: record funding rounds and the return of IPOs indicate that the venture market is once again capable of generating substantial deals and exits. Provided there is relative macroeconomic stability, the venture capital industry enters 2026 with cautious optimism, anticipating sustained development ahead.
