Latest Startup and Venture Investment News for Sunday, 26th October 2025: The Return of Mega Funds, Record AI Rounds, Revitalisation of IPOs, Climate Innovations, a Surge in M&A Deals, and Global Market Trends.
By the end of October 2025, the global venture market is solidifying a confident growth trajectory after several years of decline. Investors worldwide are once again actively financing technology startups—record deals are being struck, and companies' plans to go public are once again taking centre stage. Major players are returning to the arena with substantial investments, while governments across various nations are enhancing support for innovation. Consequently, private capital is steadily flowing back into the startup ecosystem, providing resources for a new wave of growth. According to industry analysts, in the third quarter of 2025, the total volume of venture investments globally increased by nearly 40% year-on-year—a clear indication of a renewed appetite for risk.
Growth in venture activity is being observed across all regions. The US continues to lead (particularly in the artificial intelligence sector), the Middle East has seen its investment volume nearly double over the year, whilst Europe has experienced a shift: Germany has overtaken the UK in venture financing for the first time. In Asia, amidst regulatory uncertainties, there is a continued decline in activity in China, while India, Southeast Asia, and the Gulf countries are attracting record capital. The investment boom is reaching new horizons: tech hubs are forming in Africa and Latin America (recently, Africa witnessed the largest investment of approximately $100 million in the electric mobility sector). Startup ecosystems in Russia and the CIS are also striving to keep pace, despite external constraints. A global venture uplift is emerging at the early stage, although investors remain selective and cautious.
Below are the key events and trends in the startup industry as of 26th October 2025:
- The Return of Mega Funds and Major Investors. Leading venture funds are attracting record capital volumes and sharply increasing their investments, filling the market with liquidity and boosting the appetite for risk.
- Record Funding Rounds in AI and a New Wave of 'Unicorns.' Exceptionally large investments in AI startups are driving company valuations to unprecedented heights, generating a new generation of 'unicorns.'
- Revitalisation of the IPO Market. Successful stock market floats of technology companies and new listing applications demonstrate that the long-awaited “window” for exits has reopened.
- A Boom in Defence Technology Investments. The geopolitical situation is prompting increased attention to startups in defence and security, bringing them 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 ('green') projects, biotechnology, and even crypto startups.
- A Wave of Consolidation: M&A Deals. New major mergers and acquisitions are reshaping the industry landscape, creating opportunities for profitable exits and accelerated company growth.
- Local Focus: Russia and the CIS. New funds and programmes are emerging in the region to develop local startup ecosystems, attracting investors despite external constraints.
- Cautious Optimism Among Investors. The market is experiencing a revival, but participants maintain a balanced approach to project evaluation and avoid excess risk.
The Return of Mega Funds: Big Money Back on the Market
The largest investment players are triumphantly returning to the venture scene, signalling a new phase of appetite for risk. The Japanese conglomerate SoftBank, for instance, made one of the largest bets of the year, investing tens of billions of dollars in a market leader in AI. Sovereign funds from the Gulf countries have also notably increased their activity: they are pouring billions into technology projects and launching state megaprograms to support the startup sector, forming their own tech hubs in the Middle East. Concurrently, many new venture funds are being established globally, attracting significant institutional capital for investments in high-tech spheres.
Renowned Silicon Valley funds have amassed record reserves of uninvested capital (“dry powder”)—hundreds of billions of dollars are ready to be deployed as market confidence returns. The influx of such “big money” intensifies competition for the best deals, while simultaneously instilling confidence in the sector regarding the availability of capital. The return of mega funds demonstrates that investors are once again willing to finance ambitious projects with substantial cheques, renewing the growth dynamic of the venture market.
Record Investments in AI and New 'Unicorns'
The field of artificial intelligence is the primary driver of the current venture surge, demonstrating unprecedented funding volumes. Investors are keen to stake their claim among AI market leaders, directing colossal funds towards the most promising projects. In just the past few weeks, several mega rounds have been announced. For instance, the American startup Crusoe, which creates infrastructure for AI data centres, raised approximately $1.38 billion at a valuation around $10 billion. Significant rounds have also been closed by foundational AI model developers: Anthropic (around $13 billion) and xAI (approximately $5.3 billion). Such deals elevate company valuations to unprecedented heights and underscore the excitement surrounding AI startups.
Notably, investments are pouring into not only applied AI products but also infrastructure solutions—the market is willing to generously pay even for the "shovels and picks" of the new gold rush in the field of artificial intelligence. As a result, the current investment boom is spawning a whole new array of 'unicorns' (startups valued over $1 billion). Experts warn of the risk of overheating certain projects; however, the appetite for venture capital for AI startups remains extraordinarily high.
IPO Market Revives: A Wave of Public Offerings
The global primary public offering (IPO) market is emerging from a prolonged lull and is regaining momentum. In Asia, Hong Kong has initiated a fresh wave of IPOs, where several large tech companies have successfully floated and raised billions of dollars in recent months. The situation is also improving in the US and Europe: several highly valued startups have successfully debuted on the market, generating high interest from investors and rising stock prices in the first days of trading.
The largest venture IPOs in the third quarter of 2025 include:
- Chery Automobile — a Chinese automaker whose valuation at IPO became one of the highest of the year.
- Figma — an American design platform that launched its shares with a valuation of around $15–20 billion.
- Klarna — a Swedish fintech 'unicorn' (the "buy now, pay later" service) that successfully went public.
- Netskope — an American cybersecurity company that completed its listing with a multi-billion valuation.
Defence Technology Boom: A New Priority for the Venture Market
In the context of geopolitical tensions, the niche of defence technology is rapidly developing. Venture investors are actively funding startups related to defence and security, and investments in this sector have significantly increased in 2025, approaching record levels from previous years. Startups in defence technology are emerging as a focal point for growth in the industry.
New entrants are also challenging traditional defence giants—one notable example is the startup Anduril, valued at approximately $30 billion. Major venture funds are directing substantial resources towards national security projects, underscoring the formation of a new priority for the industry.
Diversification of Investments: Not Just AI
In 2025, venture investments are covering an increasingly broad range of sectors, extending beyond artificial intelligence alone. Following last year’s downturn, fintech is once again experiencing revival: substantial rounds are occurring not only in the US but also in Europe and developing markets, fuelling the growth of new financial services. Simultaneously, interest in climate technologies, 'green' energy, and agri-tech is growing—these areas are attracting record investments as part of a global trend towards sustainable development. Biotechnology and digital health are also remaining focal points for investors.
Thus, venture capital is gradually being distributed across various industries, making the startup ecosystem more resilient and reducing the risk of overheating any one segment. This expansion of focus from solely AI to multiple sectors indicates that in addition to innovations in AI, investors are also willing to support fintech innovators, 'green' startups, biomedical platforms, cryptocurrency projects, and other promising avenues.
Market Consolidation and M&A Deals
High valuations of startups and fierce competition are driving a wave of consolidation within the industry. Major mergers and acquisitions (M&A) are once again coming to prominence, redistributing roles in the market. Technology giants are actively eyeing leaders amongst startups, eager to acquire key technologies and teams.
In recent months, several high-profile acquisitions have attracted industry attention. For example, Google has agreed to acquire the Israeli cybersecurity startup Wiz for around $32 billion—a record sum for the Israeli market. The uptick in M&A activity indicates the maturation of the ecosystem: mature startups are either merging with each other or becoming targets for acquisition by corporations. Meanwhile, venture funds are afforded the opportunity for long-awaited profitable exits and the return of capital for new investments.
Russia and the CIS: New Funds and Initiatives
Despite external constraints, efforts are underway in Russia and neighbouring countries to develop the local startup ecosystem. In 2025, several new venture funds have been announced:
- Nova Capital — a fund with a volume of 10 billion roubles for investments in IT startups.
- Kama Flow — the launch of a similarly sized fund aimed at supporting late-stage startups.
- Large corporations and banks are forming corporate venture funds focused on domestic technology projects.
In addition to financing, accelerators, startup schools, and other initiatives are being launched to support entrepreneurs. Local startups are gradually attracting the attention not only of Russian investors but also of foreign partners from friendly countries. Although the market volumes in Russia and the CIS still lag behind global leaders, the region is striving to keep up with global trends. Venture investors here are acting selectively and focusing on niches where local teams have competitive advantages.
Cautious Optimism: Conclusions and Outlook
As we approach 2026, the startup and venture investment industry is confidently entering a phase of revitalisation. The global influx of capital, the emergence of new 'unicorns,' successful IPOs, and strategic deals indicate a restoration of confidence in the market.
At the same time, ecosystem participants remain cautious. Investors are taking a more measured approach to project evaluation and are attempting to avoid excessive risk. This balanced approach inspires optimism: the venture market is growing on a more sustainable foundation, opening up new opportunities for investors and founders worldwide.
