Fresh Startup and Venture Investment News for Tuesday, 18 November 2025: Return of Mega Funds, Record AI Rounds, IPO Revival, M&A Wave, Interest in Crypto Startups, and New 'Unicorns'. A Detailed Overview for Venture Investors and Funds.
By mid-November 2025, the global venture market is confidently recovering after the downturn of recent years. According to industry analytics, the total volume of venture investments in the third quarter of 2025 reached approximately $97 billion – nearly 40% higher than the previous year, marking the best quarter since 2021. The "venture winter" of 2022-2023 is behind us, and the influx of private capital into technology startups is noticeably accelerating. Large funding rounds and the launch of new mega funds signal a return of risk appetite among investors, although they are still proceeding selectively and cautiously.
The venture boom is being observed across all regions. The United States leads the way (especially in the AI segment), with investment volumes in the Middle East doubling, Germany surpassing the UK for the first time in Europe, and growth in India and Southeast Asia compensating for the downturn in China. New tech hubs are forming in Africa and Latin America; the startup scenes in Russia and the CIS countries are also striving to keep pace despite existing constraints. Overall, the global market is gaining momentum, although investors continue to invest selectively—primarily in the most promising and resilient projects.
- Return of Mega Funds and Large Investors. Leading venture players are raising record capital and once again injecting investments into the market, rekindling risk appetite.
- Record AI Rounds and New Unicorns. Mega funding rounds in artificial intelligence are inflating startup valuations and birthing a new generation of "unicorns".
- Revival of the IPO Market. Successful public offerings by tech companies and new listing plans confirm that the long-awaited "window" for exits has reopened.
- Sector Diversification. Venture capital is flowing not only into AI but also into fintech, green technologies, biotech, defence projects, and other sectors—the investment focus is expanding.
- M&A Wave. Major mergers and acquisitions are reshaping the industry landscape, creating opportunities for profitable exits and accelerated growth for companies.
- Renewed Interest in Crypto Startups. After the crypto winter, blockchain projects are once again receiving substantial funding and investor attention.
- Local Focus. New funds and initiatives are emerging in Russia and the CIS to develop local startups, attracting investor interest despite external limitations.
Return of Mega Funds: Big Money Back in the Market
The largest investment funds and institutional players are returning to the venture arena—this indicates a renewed appetite for risk. Following a downturn in VC fundraising during 2022-2024, leading firms are resuming capital raising and launching mega funds, showcasing confidence in market potential. For example, Japanese conglomerate SoftBank is forming the Vision Fund III, with a volume of around $40 billion, while in the US, Andreessen Horowitz is raising a record fund of approximately $20 billion, focusing on late-stage investments in AI startups.
Sovereign funds from the Middle East are also becoming active, pouring billions of dollars into high-tech projects. Simultaneously, dozens of new funds are emerging in many regions, attracting significant institutional capital for investments in technology companies. The return of such "megastuctures" means more funding opportunities for startups and intensified competition among investors for the best deals.
Record Investments in AI: A New Wave of Unicorns
The artificial intelligence sector is the main driver of the current venture boom, demonstrating record funding volumes. Approximately half of all venture investments in 2025 are directed towards AI startups, with total global investments in AI likely to exceed $200 billion by the end of the year—an unprecedented level for the industry. This enthusiasm can be attributed to AI technologies promising significant efficiency gains across numerous fields and opening up multi-trillion dollar markets—ranging from manufacturing automation to personal digital assistants. Despite warnings of overheating, funds continue to increase investments, fearing they might miss out on the next technological revolution.
The massive influx of capital is accompanied by its concentration among industry leaders: the lion's share of investments goes to a few leading players. For instance, French startup Mistral AI raised about $2 billion, while OpenAI attracted around $13 billion; both of these mega rounds significantly boosted company valuations. Such deals exacerbate startup valuations but simultaneously focus resources on the most promising areas, laying the groundwork for future breakthroughs. In recent weeks, several companies have reported large funding rounds, including British firm Synthesia (which raised $200 million at a valuation of around $4 billion for its video generation AI platform) and American company Armis (which secured $435 million in a pre-IPO round at a valuation of $6.1 billion to expand its IoT cybersecurity platform).
Revival of the IPO Market and Exit Prospects
Against the backdrop of rising valuations and capital influx, tech companies are once again actively preparing for public market entry. After nearly two years of stagnation, a surge in IPOs as a key exit mechanism for venture investors is emerging. Several successful listings have confirmed the opening of a "window" of opportunities. For instance, American fintech unicorn Circle recently went public with a valuation of around $7 billion—this debut restored investor confidence that the market is ready to absorb new tech issuers. Following this, several large private companies are eager to take advantage of the favourable market conditions. Even OpenAI is contemplating its own IPO in 2026, with a potential valuation of up to $1 trillion, which would mark an unprecedented case for the industry.
Improved market conditions and greater regulatory clarity (for example, the passage of stablecoin legislation and anticipated approval of Bitcoin ETFs) provide startups with confidence: the public market has once again become a viable option for capital raising and exit for investors. The return of successful IPOs is vital for the entire venture ecosystem, as profitable exits allow funds to return capital and reinvest in new projects, completing the investment cycle.
Sector Diversification: Broader Investment Horizons
In 2025, venture investments are covering a much broader range of sectors and are no longer limited to AI alone. After last year's downturn, fintech is experiencing a revival: significant funding rounds are occurring not only in the US but also in Europe and emerging markets, fuelling the growth of new financial services. Simultaneously, investors are actively financing climate and "green" projects in line with sustainability trends. Aerospace and defence technologies are also gaining momentum, as funds increasingly invest in aerospace startups, unmanned systems, and cybersecurity firms.
Thus, the investment focus is significantly expanding: in addition to AI innovations, venture capital is actively directed towards fintech, green energy, biotech/medtech, defence projects, and other sectors. This diversity makes the startup ecosystem more resilient and reduces the risk of overheating in a single market segment.
M&A Wave and Consolidation Deals
High startup valuations and stiff market competition have led to a new wave of mergers and acquisitions. Large tech corporations are again pursuing M&A, seeking to acquire promising teams and technologies. For example, Google has agreed to acquire Israeli cybersecurity startup Wiz for approximately $32 billion—a record amount for the Israeli market. Such activity demonstrates that the ecosystem has matured: established startups are merging with each other or becoming acquisition targets for companies, while venture funds gain the chance for long-awaited profitable exits and capital returns.
Renewed Interest in Crypto Startups
After a prolonged "crypto winter," the blockchain startup market is noticeably reviving. By autumn 2025, funding for crypto projects reached its highest levels in recent years: regulators have provided more clarity (with stablecoin laws enacted and Bitcoin ETFs expected to launch), and financial giants are returning to the market, supporting an influx of new capital. Additionally, Bitcoin's price recently surpassed the psychological threshold of $100,000 for the first time, fueling investor optimism. Crypto startups that survived the "cleanout" of speculative projects are gradually restoring trust and again attracting the attention of venture and corporate investors.
Local Market: Russia and the CIS
In Russia and neighbouring countries, several new venture funds have emerged over the past year; state entities and corporations launched support programmes for technology startups. Despite a relatively modest total investment volume and the ongoing barriers (such as high interest rates and sanctions), the most promising projects continue to secure funding. The gradual formation of a local venture infrastructure is already creating a foundation for the future—by the time external conditions improve and global investors can return more actively to the region.
Conclusion: Cautious Optimism
The venture capital industry currently boasts moderately optimistic sentiment. The rapid growth in startup valuations (especially in the AI sector) is reminiscent of the dot-com boom era and raises certain concerns about overheating. However, the current enthusiasm simultaneously directs colossal resources and talents towards new technologies, laying the groundwork for future innovative breakthroughs. By the end of 2025, the startup market is unmistakably rejuvenated: record funding volumes are being recorded, new IPOs are appearing on the horizon, and funds have amassed unprecedented capital reserves. Moreover, investors have become significantly more discerning, choosing to invest primarily in the most promising projects with sustainable business models.
The key question remains whether the high expectations from the AI boom will be justified, and whether other sectors will match its appeal. For now, the appetite for innovations remains high, and the market looks to the future with cautious optimism.
