Current Startup and Venture Capital News as of 28 December 2025: The Return of Mega Funds, AI Boom, IPO Market Revival, Crypto Industry Resurgence, and a Wave of Major M&A Deals. A Comprehensive Review of Key Trends for Venture Investors and Funds.
By the end of 2025, the global venture capital market has made a robust recovery following a protracted downturn. Investors worldwide are once again actively funding technology startups, with multi-million dollar deals being struck and IPO plans for promising companies taking centre stage once more. The largest venture funds and corporations are returning with record investment programmes, while governments across various countries are enhancing support for innovative businesses. The influx of private capital ensures that young companies receive the liquidity necessary for growth and scaling up.
Venture activity is widespread across all regions. The United States continues to lead due to colossal investments in the field of artificial intelligence. In the Middle East, the volume of investments in startups has increased exponentially, driven by generous funding from government-backed funds. Europe has seen a notable shift: Germany has surpassed the United Kingdom in venture deal volume for the first time in a decade, bolstering the positions of continental hubs. India, Southeast Asia, and other rapidly developing markets are attracting record capital amidst a cautious investment climate in China, primarily due to regulatory risks.
Nevertheless, China is taking new steps to stimulate innovation: national and several regional venture funds worth tens of billions of yuan have been launched to invest in "hard tech," and IPO rules for aerospace companies have been relaxed. The startup ecosystems in Africa and Latin America are also gaining momentum — the first "unicorns" have emerged in these regions, underscoring the truly global nature of the current venture boom. Russia and the CIS countries are striving to keep pace despite external restrictions: new funds and accelerators are being launched in the region, supported by the state and corporations, to integrate local projects into global trends. A new global venture boom is forming, although investors continue to approach deals selectively and cautiously.
Below are the key events and trends shaping the venture market as of 28 December 2025:
- The Return of Mega Funds and Large Investors. The largest venture players are forming unprecedentedly large funds and ramping up investments, once again flooding the ecosystem with liquidity and increasing risk appetite.
- Record Funding Rounds and a New Wave of AI “Unicorns.” Unprecedented investments in artificial intelligence are driving startup valuations to unseen heights, particularly in the AI segment, resulting in the emergence of numerous new “unicorns.”
- Revitalisation of the IPO Market. Successful public exits by technology companies and an increase in new filings confirm that the “window of opportunity” for exits remains open.
- Renaissance of Crypto Startups. The resurgence of the digital asset market has rekindled investor interest in blockchain projects, enhancing capital inflow into the crypto industry.
- Defence and Aerospace Technologies Attract Capital. Geopolitical factors are stimulating investment in military technologies, space projects, and robotics.
- Diversification of Sector Focus: Fintech, Climate, and Biotech on the Rise. Venture capital is flowing not only into AI but also into fintech, green technologies, biotechnology, and other promising spheres, broadening market horizons.
- A Wave of Consolidation and M&A Transactions. High valuations of startups and fierce competition are prompting a new wave of mergers and acquisitions, opening additional opportunities for exits and accelerated growth for companies.
- Global Expansion of Venture Capital. The investment boom is spreading beyond traditional centres; a significant influx of capital is observed in the Middle East, South Asia, Africa, and Latin America, where new tech hubs are forming.
- Local Focus: Russia and the CIS. Despite restrictions, new funds and initiatives are emerging in the region to develop local startup ecosystems, signalling a gradual recovery of venture activity.
The Return of Mega Funds: Big Money Back in the Market
The largest investment players are making a triumphant return to the venture scene, indicative of a renewed risk appetite. The Japanese conglomerate SoftBank is experiencing its own “renaissance,” once again making large bets on tech projects in the AI sector. Its Vision Fund III, approximately $40 billion in size, is already actively investing in promising areas, and the company is reorganising its portfolio for new AI initiatives: for instance, SoftBank has sold its stake in Nvidia for approximately $6 billion to free up capital for AI investments. Moreover, SoftBank is effectively going all-in on the AI segment, intending to invest around $20 billion in one of the industry leaders – OpenAI.
Simultaneously, leading Silicon Valley funds have amassed an unprecedented reserve of uninvested capital (so-called “dry powder”) – hundreds of billions of dollars that are ready to be deployed as the market strengthens. For example, venture firm Andreessen Horowitz (a16z) is assembling a new mega fund of around $20 billion, primarily targeting late-stage American AI startups. Sovereign funds from Gulf countries have also become active: Middle Eastern governments are injecting billions into innovation programmes, creating powerful regional tech hubs. Several prominent investment firms that had previously taken a pause are back on the scene with major deals. For instance, after a period of caution, Tiger Global has announced a new $2.2 billion fund (though this is smaller than its previous giant funds), pledging a more selective approach to investing. The return of “big money” is already palpable: the ecosystem is becoming liquidity-rich, competition for the best deals is intensifying, and the industry is receiving the much-needed confidence boost for further capital influx.
Record AI Rounds and New “Unicorns”: The AI Investment Boom
The artificial intelligence sector remains the main driver of the current venture boom, setting new records in funding volume. Investors are eager to stake their claims in AI market leaders, directing colossal sums into the most promising companies. For example, Elon Musk's startup xAI attracted around $10 billion in investment, while OpenAI raised $8.3 billion, pushing its valuation to approximately $300 billion. Both rounds were significantly oversubscribed, highlighting the frenzy surrounding leading AI companies.
Venture capital is flowing not only into applied AI services but also into critical infrastructure for them. Investors are willing to finance even the proverbial “shovels and pickaxes” of the new digital age – from manufacturing specialised chips and cloud platforms to energy consumption optimisation tools for data centres. The total amount of investment in the AI sector in 2025 is estimated to exceed $120 billion, with more than half of all venture funds for the year directed towards AI projects. This surge has given rise to dozens of new “unicorns” worldwide – companies valued at over $1 billion are emerging in many countries. While experts warn of the risks of overheating this segment, investor appetite for AI startups shows no signs of waning.
The IPO Market Revives: Window of Opportunity for Exits Open
The global market for initial public offerings has decisively revived after a prolonged lull and continues to gain momentum. In Asia, Hong Kong has launched a new wave of IPOs: in recent weeks, several large technology companies have gone public, collectively attracting multi-billion dollar investments, confirming investor readiness to actively engage in IPOs. In North America and Europe, the situation is also improving: the number of public offerings in the US has increased by over 60% in 2025 compared to the previous year, returning to pre-pandemic levels. A number of highly valued startups have successfully debuted on the stock exchange: for instance, fintech unicorn Chime saw its stock rise by approximately 30% on its first trading day, while design platform Figma attracted around $1.2 billion in its IPO, tripling its market capitalisation from its placing price. Following closely are new high-profile exits – among the most anticipated candidates are payment giant Stripe and other well-known “unicorns” eager to capitalise on the favourable window.
The resurgence of life in the public market is critically important for the venture ecosystem. Successful IPOs allow funds to lock in profitable exits and direct the freed-up capital into new projects, closing the investment cycle. The prolonged “window of opportunity” is prompting more startups to contemplate going public. Moreover, on the horizon looms an unprecedented deal: SpaceX is preparing for an IPO and, according to media reports, plans to raise $25–30 billion at a valuation of around $1 trillion. If this record listing occurs in 2026, it could open the floodgates for a new wave of major public offerings and firmly establish the revival of the IPO market.
Crypto Startups Experience a Renaissance
After a deep slump, the crypto market in 2025 has turned upward again, reviving interest among venture investors in blockchain startups. Capital is once again flowing into the crypto industry – from infrastructure solutions and cryptocurrency exchanges to DeFi platforms and Web3 projects. Major specialised funds have resumed their activity in this segment, and new crypto startups are attracting significant funding rounds against a backdrop of steadily rising valuations of digital assets. By the end of the year, Bitcoin had nearly approached its historical high of $90,000, bolstering investor confidence in the prospects for crypto assets. Corporate strategic interest in this market is also reviving: for instance, the South Korean crypto exchange Upbit was acquired by the financial conglomerate Naver for approximately $10 billion – one of the largest deals of the year in the crypto industry. Overall, this new wave of interest in blockchain projects indicates that crypto startups are experiencing a unique renaissance amidst improved market conditions.
Defence and Aerospace Technologies Attract Capital
The geopolitical climate and rising defence budgets are stimulating investment inflows into military and aerospace technologies. Startups creating innovations for the defence sector – from drones and cybersecurity to AI systems for the military – are receiving support from both government institutions and major private investors. Commercial space projects are also receiving active funding: the development of satellite constellations, orbital services, and new rocket technologies is attracting significant venture capital. In China, for example, the relaxation of IPO rules for space companies aims to facilitate fundraising in this sector. In addition to direct financing for startups, tech giants are also eager to keep pace: Google has agreed to acquire Israeli cybersecurity startup Wiz for a record $32 billion – this deal became the largest in the history of the Israeli tech industry. The willingness of market leaders to spend tens of billions on key technologies underscores the strategic significance of the defence-tech sector.
Diversification of Investments: Fintech, Climate, and Biotech on the Rise
In 2025, venture investments are being distributed across an increasingly broad range of sectors and are no longer solely focused on artificial intelligence. After previous downturns, fintech has revived: large funding rounds are taking place in the US, Europe, and emerging markets, spurring the growth of new digital financial services. Simultaneously, investors are showing increased interest in climate technologies and green energy. Renewable energy, eco-friendly materials, and agri-tech projects are receiving record financing amidst the global trend towards sustainability. For example, the Swiss climate startup Climeworks recently raised $162 million for the development of CO2 capture technologies, bringing the company’s total investments to over $1 billion.
Interest in biotechnology is also returning. The emergence of breakthrough medical developments is once again attracting significant capital: one startup developing an innovative obesity treatment secured approximately $600 million in a single round, reigniting interest among investors in biomedical innovations. Even previously "frozen" projects in the crypto sector are beginning to emerge from the shadows (as noted earlier, the crypto market is reviving). The expansion of sector focus demonstrates that investors are seeking new growth points beyond the overheated AI segment, making the entire startup ecosystem more balanced and sustainable.
Consolidation and M&A Deals: The Aggregation of Players
High valuations of companies and fierce market competition are pushing the startup ecosystem toward consolidation. Major mergers and acquisitions are once again taking centre stage, shifting the power dynamics within the industry. The year 2025 is marked by a record number of large-scale acquisitions of “unicorn” startups: 36 deals worth approximately $67 billion took place (in comparison, there were 22 deals worth $7 billion in 2024). Notable transactions of the year include:
- The acquisition of the Israeli cybersecurity startup Wiz by Google for $32 billion;
- The acquisition of cryptocurrency exchange operator Upbit (Dunamu) by Naver (South Korea) for $10.3 billion;
- The purchase of the observability cloud platform Chronosphere by Palo Alto Networks for $3.4 billion.
Such mega-deals demonstrate that even industry leaders are willing to spend tens of billions to keep pace in the technology race. Overall, the renewed wave of acquisitions reflects the maturity of the industry: mature startups are merging with one another or becoming targets for corporations, and venture funds are realizing much-awaited profitable exits. Consolidation enhances ecosystem efficiency, allowing companies to combine resources for accelerated growth and global expansion, while investors see improved returns from substantial successful exits.
Global Expansion of Venture Capital: The Boom Encompasses New Regions
The venture boom of 2025 is characterised by a widening geographical scope. In addition to traditional technology centres (the US, Western Europe, China), significant capital inflows are being observed in new markets worldwide. Gulf countries – Saudi Arabia, the UAE, and others – are investing billions in creating local tech parks and startup ecosystems in the Middle East. India and Southeast Asia are experiencing a true renaissance in the startup scene, attracting record volumes of venture capital and giving rise to new unicorns. Rapidly growing tech companies are also emerging in Africa and Latin America – some have reached valuations exceeding $1 billion for the first time, solidifying their status as global players.
Thus, venture capital is becoming more global than ever before. Promising projects can now secure funding regardless of location, so long as they have the potential for scaling. For investors, this opens new horizons for finding high-yield opportunities worldwide while diversifying risks across countries and regions. The spread of the venture boom to new territories also fosters the exchange of experience and talent, making the global startup ecosystem more interconnected.
Russia and the CIS: A Local Focus Amid Global Trends
Despite sanctions and other restrictions, startup activity in Russia and neighbouring countries is on the rise. In 2025, new venture funds with a total volume in the tens of billions of roubles have been launched, aimed at supporting early-stage technological projects. Major corporations are establishing their own accelerators and venture units, while government programmes are helping startups secure grants and investments. For instance, as a result of Moscow's “Innovators Academy” programme, over 1 billion roubles have been attracted to local tech projects.
Although the scale of venture deals in Russia and the CIS still significantly lags behind global standards, interest in local projects is gradually returning. A partial easing of restrictions is opening up investment opportunities from friendly countries, which somewhat compensates for the exit of Western capital. Some companies are contemplating going public as market conditions improve: notably, a regional food tech startup recently secured funding at a multi-billion-dollar valuation and is preparing for an IPO – a sign of growing ambitions among local players. New initiatives aim to provide an additional impulse to the local startup ecosystem and align its development with global trends.
Cautious Optimism: The Venture Market Looks to the Future
As 2025 draws to a close, moderately optimistic sentiments have strengthened within the venture industry. Record funding rounds and successful IPOs convincingly demonstrate that the period of decline is behind us. However, market participants remain cautious. Investors are placing heightened emphasis on the quality of projects and the resilience of business models, striving to avoid unfounded hype. The focus of the new upturn is not on racing for the highest valuations but on seeking truly promising ideas capable of generating profit and transforming industries.
Even the largest funds are advocating for a balanced approach. It is noted that the valuations of several startups remain very high and are not always backed by fundamental metrics. Aware of the overheating risk (particularly in the AI segment), the venture community aims to act prudently, combining investment boldness with thorough analysis. Thus, the new growth phase is built on a more solid foundation: capital is directed toward quality projects, while the industry looks to the future with cautious optimism, focusing on sustainable long-term growth.
