Global Overview of Startups and Venture Investments as of 4 November 2025: Major AI Deals, IPO Resurgence, Growth of Venture Funds and the Emergence of New Tech Hubs.
By early November 2025, the global venture market continues its steady recovery from a prolonged slump. Investors worldwide are once again actively funding technology startups—record-breaking deals are being struck, and IPO plans are taking centre stage. Major players are returning with substantial investments, governments are increasing their support for innovation, and private equity is once again flowing into the startup ecosystem.
The rise in venture activity is being observed across all regions. North America remains the leader (particularly in the field of artificial intelligence, which accounts for the lion's share of investments), but other parts of the world are gaining momentum. The Middle East has seen a significant surge in investments, with sovereign funds helping to establish their own tech hubs. In Europe, the market is demonstrating resilience: Germany has for the first time outpaced the UK in terms of deal count, with early-stage funding particularly strong there. Asia shows a mixed picture: China is showing signs of revival after a weak period, although its activity still lags behind the peak levels of 2021-2022; at the same time, India and Southeast Asia are attracting substantial capital amidst a relative downturn in China. Startup ecosystems in Russia and neighbouring CIS countries are also striving to keep pace, despite external constraints. A global venture upswing is taking shape at a new stage of development, even as investors remain selective and cautious.
Below is a summary of the key events and trends defining the agenda for the venture market as of 4 November 2025:
- Capital Influx and the Return of Mega Deals. Leading venture funds are raising record amounts, and major investors are once again actively investing, saturating the market with capital and rekindling their risk appetite.
- Dominance of AI Investments and New Unicorns. Unusually large funding rounds are driving startup valuations to new heights, especially in the artificial intelligence sector, giving rise to a new wave of unicorns.
- IPO Market Resurgence. Successful listings of technology companies confirm that the long-awaited "window" for exits has reopened, allowing investors to expect liquidity.
- Diversification of Sector Focus. Venture capital is not only flowing into AI but also into fintech, climate and "green" projects, biotechnology, defence technologies, and even resurgent crypto startups.
- Consolidation through M&A Deals. A new wave of mergers, acquisitions, and strategic investments is reshaping the industry landscape, creating exit opportunities and accelerating growth for the strongest players.
- Global Hubs and Regional Growth. The Middle East, Southeast Asia, Latin America, and other regions are strengthening their positions on the global venture map, attracting record capital against a backdrop of slowing growth in China.
- Russia and the CIS: Local Initiatives. Despite constraints, new funds and startup support programmes are being launched in the region to stimulate the development of local ecosystems and attract investor attention.
Return of Mega Funds: Big Money Back in the Market
The largest investment players are triumphantly returning to the venture arena, indicating a renewed risk appetite. Japan's SoftBank, for instance, is establishing a new Vision Fund III worth approximately $40 billion, focusing on advanced technologies (primarily AI and robotics). Sovereign funds from Gulf countries have also become active: they are pouring billions into tech projects and launching government mega-programmes to support the startup sector, creating their own "Silicon Valleys" in the Middle East. At the same time, numerous new venture funds are emerging worldwide, attracting significant institutional capital for investments in high-tech sectors.
Renowned venture firms from Silicon Valley are also increasing their presence. American funds have amassed unprecedented reserves of uninvested capital (known as "dry powder")—hundreds of billions of dollars ready to be allocated to new projects. This is leading to an influx of liquidity into the startup market and creating conditions for the emergence of mega deals. Multi-million and even billion-dollar funding rounds are becoming commonplace again, significantly enhancing the valuations of promising companies and intensifying competition among investors to enter the best projects.
Record Investments in AI: A New Wave of Unicorns
The field of artificial intelligence is the primary engine of the current venture upswing, demonstrating record levels of funding. Investors are eagerly financing AI startups with colossal sums, pushing their valuations to unprecedented heights. In just the last quarter, several companies working on generative AI and foundational models have secured funding rounds amounting to billions of dollars: among them are Californian Anthropic (raised ~$13 billion), Elon Musk's xAI (~$5.3 billion), French Mistral AI ($2 billion), and several others. As a result, nearly half of all venture investments are now directed towards the AI sector, with a small group of AI companies absorbing the lion's share of all capital raised.
By amassing capital on such a scale, AI startups are rapidly entering the "unicorn club" with valuations exceeding $1 billion. The global list of private unicorn companies has expanded by dozens of new AI players in just a few months, significantly increasing their total valuation. Major tech corporations are also not staying idle; they are investing in AI infrastructure: a notable example is Microsoft's investment of $9.7 billion in Australian startup IREN, which focuses on cloud computing for AI tasks. This arms race in the field of AI is attracting new investors keen not to miss the next breakthrough and fuels the feeling that we are witnessing a historic spike in interest in artificial intelligence.
IPO Market Revives: Window of Opportunity for Exits
The global primary public offerings (IPO) market is emerging from a lull and is gaining momentum again. After several years of virtually closed "windows" for exits, venture investors are finally getting a chance to realise profits: a wave of large tech IPOs signals a return of confidence in public markets. In recent months, several unicorns have successfully debuted on stock exchanges with valuations exceeding $1 billion. One of the most anticipated was the listing of Swedish fintech giant Klarna on the New York Stock Exchange with a market capitalisation of around $15 billion—significantly above its last private valuation in 2022 (approximately $6.7 billion), though still lower than its peak valuation in 2021.
In the U.S., a standout event was the IPO of software developer Figma, which captured investor attention after the cancellation of its sale deal. The American cybersecurity firm Netskope also executed a successful listing along with various Asian firms (including car manufacturer Chery Automobile in Hong Kong). In total, over a dozen venture companies with unicorn valuations were listed on global stock markets in the third quarter, and this trend continued into autumn. Companies are eager to capitalise on the favourable moment: the rising stock market and strong demand for tech issuers are creating a "window of opportunity" for new IPOs. If macroeconomic conditions remain stable, experts expect further increases in the number of public offerings in late 2025 and throughout 2026.
Diversification of Investments: Not Just AI
In 2025, venture investments are encompassing an increasingly broad range of sectors and are no longer limited to artificial intelligence alone. Following last year's downturn, interest in fintech projects is reviving: significant investments are flowing into startups in digital finance, banking services, and payments. For instance, in the U.S., payment platform SavvyMoney raised $225 million, while neobanks and "buy now—pay later" services are thriving in Europe. A strong impulse is also observed in climate and environmental technologies: "green" startups in renewable energy, waste management, and emission reduction are attracting significant funding rounds amidst a global focus on ESG and sustainable development.
Appetite for biotechnology is returning. Startups in medical technologies and pharmaceuticals (from new treatment methods to genetic research) are again attracting investor interest, as evidenced by funding growth in the sector—healthcare and biotech raised nearly $16 billion worldwide in the last quarter. In light of geopolitical shifts, significant attention is being paid to defence and aerospace developments: funds are supporting companies creating drones, satellites, cybersecurity systems, and other dual-use products. Even the cryptocurrency industry, which has experienced a downturn, is gaining renewed momentum—some crypto startups and blockchain platforms are beginning to raise capital again as the digital asset market stabilises. Thus, venture capital is now being spread much more widely across various sectors of the economy.
Consolidation and M&A Deals: Scaling Up Players
High startup valuations and intense competition for markets are pushing the industry toward consolidation. Significant mergers and acquisitions deals are again coming to the forefront, consolidating key players and reshaping the landscape of the tech sector. After a relative lull in previous years, corporate giants and unicorns with solid cash reserves are actively acquiring promising projects to strengthen their positions and gain access to new technologies.
In the third quarter of 2025, the volume of global M&A deals involving venture companies reached one of the highest levels in recent years. Nine startups were acquired for over $1 billion each. Among the most notable examples are the acquisition of Californian AI startup Statsig by OpenAI to bolster its developments, and the purchase of German AI platform Sana Labs by Workday. In Europe, several "exits" through sales were recorded: significant M&A deals occurred in the fields of fintech, cybersecurity, and medtech (for example, Israeli AI company Noma Security secured a strategic investor, and Swedish Sana was acquired in an international deal). Additionally, in the cryptocurrency industry, American exchange Coinbase is negotiating to acquire London-based fintech startup BVNK for approximately $2 billion—this move aims to consolidate the stablecoin market. This wave of mergers provides investors with much-needed liquidity and allows the most successful players to scale their businesses, although the total number of independent startups is declining.
Regional Growth: New Venture Hubs
Venture activity is becoming increasingly global — new regional hubs of innovation are emerging. The Middle East has transformed into one of the fastest-growing venture markets: Gulf states, which previously invested primarily abroad, are now actively developing their own ecosystems. In the United Arab Emirates and Saudi Arabia, technoparks and funds to support local startups are being launched, which have already led to several record deals. For instance, in Dubai, the startup Xpanceo raised $250 million for the development of "smart" contact lenses, while Saudi fintech project Hala secured $157 million for the expansion of its payment platform — unprecedented amounts for the region previously.
The Asian venture market is also demonstrating improvement beyond China. In Southeast Asia, Singapore has taken the lead: the amount invested in Singaporean startups nearly tripled compared to last year thanks to several large funding rounds (for example, $220 million for local eSIM service provider Airalo). In India, startup funding has slightly decreased in recent months but remains significant in absolute terms, while large funding rounds in semiconductors and robotics have occurred in South Korea and Japan (the Korean project Rebellions raised $250 million for AI chip development). Israel continues to maintain its standing as one of the world's centres of innovation, despite a notable decline in investment volumes compared to the peak levels of 2021.
Europe, while lagging behind the U.S. in terms of funding, remains stable and gradually gaining momentum. The total investment in European startups during the last quarter exceeded $13 billion (remaining stable compared to the previous quarter and 22% higher than a year ago), with about 60% of this amount directed towards early-stage rounds. The continent's startup scene is diversifying: in addition to London and Berlin, significant deals are taking place in Paris, Stockholm, Tel Aviv, and other tech hubs. Notably, four out of nine global M&A deals valued at over $1 billion in the past quarter involved European companies—an indication of the maturity of several local players. Additionally, Latin America has contributed to global growth: in Brazil, the volume of venture investments during the summer increased by nearly 50%, once again positioning the country as a regional leader. Thus, the global venture map continues to expand—capital is increasingly moving to different corners of the globe in search of talented teams and promising ideas.
Russia and the CIS: Local Initiatives Amidst Global Trends
Despite external constraints, startup activity is reviving in Russia and neighbouring countries. Local investors and corporations are launching new funds and programmes, seeking to develop local startup ecosystems in line with global trends. Over the past year, the Russian venture capital market has begun to emerge from stagnation: according to the Moscow Innovation Cluster, the volume of venture investments in Russia increased by nearly 91% in the first half of 2025 compared to the same period in 2024 (to $87 million). While absolute figures remain modest, the positive trend is evident—the number of active investors has grown by over 20%, and an increasing number of projects are receiving funding.
With many foreign funds withdrawing, local players are filling the gap. Both private and government venture funds currently provide the lion's share of investments in startups, while the role of business angels has diminished due to high risks and costly capital. A key trend is the concentration of resources on more mature and resilient companies. For example, the state-backed Moscow Venture Fund, along with several private funds and corporations, has concluded five deals totaling approximately 500 million rubles during the recent Moscow Startup Summit, investing in startups with already validated business models. Major tech companies are also getting involved: Yandex has launched a small business support programme worth 500 million rubles (offering advertising credits and discounted services for nascent companies), while the Sberbank ecosystem continues to operate a corporate accelerator for fintech projects.
In addition to Russia, venture movements are developing in other former CIS countries. In Kazakhstan and Uzbekistan, new funds and startup accelerators have emerged over the past year, and a Central Asian Venture Forum is scheduled for 2026 to attract international investors. Thus, the region is striving to integrate into the global venture capital market, leveraging its strengths—from AI developments to traditionally strong sectors like fintech and agri-tech. Although external factors pose constraints, local initiatives inspire cautious optimism and instill hope for further growth of startup ecosystems in the post-Soviet space.
Cautious Optimism and Quality Growth
By the beginning of November 2025, the venture market is showing moderately optimistic sentiments. Successful IPOs and substantial funding rounds indicate that the worst period of decline is behind us, and the ecosystem is entering a new phase of development. At the same time, the current upswing is marked by a more measured approach compared to the frenzied boom of previous years: investors are meticulously assessing opportunities, capital is being concentrated in the most promising companies, and startups are expected to demonstrate more coherent unit economics and a clear path to profitability.
Venture capital is now growing more in depth rather than breadth—focusing on quality growth. The market has learned lessons from past "bubbles" and overheating: the valuations of many companies have been adjusted to more realistic levels, making them more attractive for long-term investments. The consolidation of players underscores a pursuit of efficiency and sustainability, while the diversification of sector focus indicates that innovative opportunities exist across a wide range of fields. Unless new external shocks occur, experts anticipate that the trend of moderate growth will continue: in 2026, venture investments could further increase, but without excessive euphoria, emphasising project quality instead. Thus, the startup and venture capital market is entering the new year with cautious optimism, balancing high expectations for technology (especially AI) with a more sober and rational investment approach.
