Current Startup and Venture Investment News for Monday, 17 November 2025: The Return of Megafunds, Record AI Rounds, IPO Market Recovery, M&A Wave, Resurgence of Crypto Startups, and New Unicorns. A Detailed Overview for Venture Investors and Funds.
By mid-November 2025, the global venture market is confidently continuing its recovery from the downturn of recent years. According to industry analytics, the total volume of venture investments reached approximately $97 billion in Q3 2025 - nearly 40% higher than the previous year, marking the best quarterly performance since 2021. The "venture winter" of 2022-2023 is now behind us, and the influx of private capital into technology startups is noticeably accelerating. Large funding rounds and the launch of new megafunds indicate a return of investors' risk appetite, although they remain selective and cautious in their investments.
Venture activity is growing across all regions. The USA maintains its lead (with particularly strong financing for AI projects), while the Middle East has seen investment volumes double over the year, thanks to support from sovereign funds. In Europe, a notable upturn is evident, with Germany surpassing the UK in terms of venture capital raised for the first time. In Asia, record capital flows are being attracted by India and Southeast Asia amid a relative decline in activity in China. Tech hubs are emerging in Africa and Latin America, while the startup scenes in Russia and the CIS are also striving to keep pace despite external restrictions. Overall, the global market is gaining strength, although investors remain selective, focusing primarily on the most promising and resilient projects.
- The Return of Megafunds and Large Investors. Leading venture players are raising record capital and are once again actively investing in startups, saturating the market with capital and rekindling appetite for risk.
- Record AI Rounds and New Unicorns. Unprecedented mega-rounds of funding in the AI sector are driving startup valuations to new heights and spawning a wave of new "unicorns."
- Revival of the IPO Market. Successful technology company public listings and new listing plans affirm that the long-awaited "window" for exits has reopened.
- Diversification of Sectors. Venture capital is being directed not only towards AI but also into fintech, green technologies, biotech, defence developments, and other sectors - the investment focus is expanding.
- Wave of Consolidation and M&A. Major mergers and acquisitions are reshaping the industry landscape, creating new opportunities for profitable exits and accelerated growth for companies.
- Return of Interest in Crypto Startups. Following a prolonged crypto winter, blockchain projects are again receiving significant funding and attention from funds and corporations.
- Local Focus. New funds and initiatives are emerging in Russia and the CIS to develop local startup ecosystems, attracting investor interest despite constraints.
The Return of Megafunds: Big Money Back in the Market
The largest investment funds and institutional players are confidently returning to the venture arena, indicating a new surge of risk appetite. Following a slump in venture fundraising during 2022-2024, leading firms are resuming capital raising and launching megafunds, demonstrating belief in the market's potential. For instance, the Japanese conglomerate SoftBank has announced the launch of its new Vision Fund III with a volume of around $40 billion. In the USA, Andreessen Horowitz is forming a record-sized fund (~$20 billion) with a focus on investing in late-stage AI startups.
Sovereign funds in the Middle East are also becoming active, pouring billions of dollars into high-tech projects and creating regional tech hubs. At the same time, dozens of new venture funds are emerging across all regions, attracting significant institutional capital for investments in technology companies. The return of such "megafunds" means more funding opportunities for startups, but also intensifies competition among investors for the best projects.
Record Investments in AI: A New Wave of Unicorns
The artificial intelligence sector remains the main driver of the current venture upturn, showing record volumes of financing. Estimates suggest that about half of all venture investments in 2025 are directed towards AI startups, with total global investments in AI potentially exceeding $200 billion by year-end - an unprecedented level for the industry. This excitement is driven by the promise of AI technologies to significantly enhance efficiency across numerous sectors and open up multi-trillion-dollar markets - from industrial automation to personal digital assistants. Despite warnings about possible market overheating, funds continue to increase their investments, fearing missing out on the next technological revolution.
The massive capital inflow is accompanied by resource concentration among industry leaders: the lion's share of investments is going to a select few companies dominating the AI race. For example, the French startup Mistral AI raised around $2 billion, while OpenAI attracted $13 billion - both mega-rounds sharply increased company valuations. Such deals inflate startup prices but simultaneously concentrate resources in the most promising directions, laying the foundation for future breakthroughs.
In recent weeks, several companies have announced receiving significant funding, confirming the return of "big checks" to the market. Some noteworthy examples include:
- Synthesia (United Kingdom) – raised $200 million at a valuation of about $4 billion to develop its AI video generation platform (led by Alphabet's GV fund).
- Armis (USA) – secured $435 million in a pre-IPO round at a valuation of $6.1 billion to expand its IoT device cybersecurity platform (with leading investors Goldman Sachs and CapitalG).
- Cursor (USA) – attracted around $2.3 billion in its latest funding round, raising its valuation to approximately $29 billion just five months after its previous round, underscoring the unprecedented excitement around AI tools for developers.
Revival of the IPO Market and Exit Prospects
Amid rising valuations and capital influx, technology companies are once again actively preparing to go public. Following nearly two years of dormancy, a palpable surge in IPOs is underway as the primary exit mechanism for venture funds. Several successful listings in 2025 confirmed the opening of the "window" of opportunities: for instance, American fintech unicorn Circle successfully conducted an IPO with a valuation of around $7 billion - this debut restored investors' confidence in the market's appetite for new technology issuers. Following this, several major private companies are eager to take advantage of the favourable situation. Insider reports indicate that OpenAI, the creator of ChatGPT, is considering its own IPO in 2026, potentially valued at up to $1 trillion, which would be unprecedented for the industry. The blockchain company ConsenSys (developer of the MetaMask wallet) is also preparing for a listing in 2026.
Improved market conditions and gradual regulatory clarity (e.g., the enactment of special laws on stablecoins and the anticipation of approval for Bitcoin ETFs) provide startups with confidence: the public market has once again become a viable option for raising capital and for investor exits. The return of successful IPOs is crucial for the venture ecosystem: profitable exits enable funds to return investments and redirect freed-up capital into new projects, completing the investment cycle.
Diversification of Sectors: Broader Investment Horizons
In 2025, venture investments are embracing a much broader range of sectors, no longer confined to artificial intelligence alone. Following last year's downturn, fintech is revitalising: large funding rounds are occurring not only in the USA but also in Europe and emerging markets, boosting the growth of new digital financial services. Simultaneously, driven by sustainable development, investors are actively financing climate-related and "green" projects. Space and defence technologies are gaining traction - funds are increasingly investing in aerospace startups, unmanned systems, and defence tech.
Thus, the investment focus has significantly broadened: in addition to AI innovations, venture capital is now flowing into fintech, environmental startups, biotech/med tech, security projects, and other directions. This wide diversification makes the entire startup ecosystem more resilient and reduces the risk of overheating in specific segments. Notably, the healthcare sector emerged as the third-largest globally in terms of venture investments (around $15–16 billion) by the end of Q3. For instance, the American medtech startup Forward Health raised $225 million in a Series D round (investors include SoftBank and Founders Fund), raising its valuation above $1 billion and achieving unicorn status. There is also a resurgence of interest in defence technologies (a notable example is Anduril Industries in the USA, which received $2.5 billion, doubling its valuation to approximately $30 billion), and a partial restoration of trust in the cryptocurrency industry has allowed some blockchain projects to begin attracting funding again.
Wave of Consolidation and M&A Deals
Elevated startup valuations and fierce market competition have led to a new wave of mergers and acquisitions. Tech giants are resuming activity to acquire key technologies and talent: for example, Google has agreed to acquire the Israeli cybersecurity startup Wiz for about $32 billion - a record amount for the Israeli tech sector. This large-scale M&A activity indicates that the startup ecosystem has matured: mature companies are either merging with each other or becoming targets for acquisition by corporations, and venture investors are finally seeing an opportunity for long-awaited profitable exits.
Consolidation is also affecting the venture sector itself. In October, major investment bank Goldman Sachs announced the acquisition of the venture firm Industry Ventures for approximately $1 billion - one of the largest deals of the year within the VC market, reflecting the growing interest of traditional financial institutions in tech assets. Additionally, signs of consolidation are emerging in the crypto industry: sources indicate that payment giant Mastercard is close to acquiring a blockchain infrastructure startup (provider of technology for stablecoins) for an amount up to $2 billion. These moves confirm the intent of major players to consolidate in promising niches and accelerate the market's reformatting in favour of larger and more robust companies.
The Return of Interest in Crypto Startups
Following a prolonged slump during the "crypto winter," the market for blockchain startups has noticeably revived in the second half of 2025. The autumn season has seen the highest volumes of funding in recent years, largely due to clearer regulations: regulators are introducing understandable rules (e.g., laws on stablecoins, the prospect of Bitcoin ETF approvals), and major financial corporations are returning to the realm of digital assets. As a result, the influx of venture capital into the crypto segment has surged dramatically.
Notably, one of the largest venture deals of the year, outside the AI sector, was for a crypto startup: the American project Polymarket raised approximately $2 billion (at a valuation of around $9 billion) to develop a decentralised prediction market platform. Infrastructure solutions for digital currencies are also beginning to receive support - for instance, the startup Hercle (USA), which is developing a platform for launching stablecoins, recently secured around $60 million in funding. Overall, cleansed of speculative ballast, crypto startups are gradually restoring trust and once again attracting attention from venture funds and corporations. The involvement of traditional financial players and clearer regulations are laying the groundwork for further growth in investments in this segment.
The Local Market: Russia and the CIS
Despite external restrictions, the startup ecosystem in Russia and neighbouring countries is also striving to develop against the backdrop of global recovery. Over the past year, several new venture funds have emerged in the region (with a combined volume in the tens of billions of roubles), and government institutions and large corporations have launched technology support programmes - new accelerators, thematic funds, and grant competitions for innovative projects have been established. While venture investment volumes in Russia and the CIS remain relatively modest in global terms, significant barriers persist (high interest rates, sanctions, etc.). Nevertheless, the most promising local startups continue to attract funding and grow, focusing on local market niches.
The establishment of a domestic venture infrastructure is gradually creating a foundation for the future - by the time external conditions improve and global investors can return to the region more actively. Notably, in 2025, some restrictions were lifted for foreign investors wishing to invest in local projects, which is slowly rekindling interest in foreign capital. Such local initiatives, despite geopolitical challenges, are integrating Russian and neighbouring markets into global trends and preparing them for participation in a new venture upturn.
Conclusion: Cautious Optimism
The venture capital industry is experiencing a moderately optimistic mood. On one hand, the rapid rise in startup valuations - particularly in the AI sector - draws parallels with the dot-com boom era and serves as a reminder of the risk of market overheating. On the other hand, the current investment excitement is directing vast resources and talent towards the development of new technologies, laying the groundwork for future innovative breakthroughs.
By the end of 2025, it has become clear that the global startup market has revived: record funding volumes are being reported, high-profile IPOs are on the horizon, and the largest funds have accumulated unprecedented pools of capital for investment. Investors, however, are acting more discerningly, primarily investing in the most promising projects with sustainable business models. The central question moving forward remains - will high expectations regarding the AI boom be realised, and will other sectors enhance their attractiveness to capital? Meanwhile, the appetite for innovation remains heightened, and market participants are looking ahead with measured enthusiasm, hoping for continued balanced growth in the venture ecosystem.
