Current News on Startups and Venture Investments for Friday, 5 December 2025: Mega Funds, Record AI Rounds, New Unicorns, IPO Revitalisation and Key Global Trends in the Venture Market.
By the beginning of December 2025, the global venture market continues to confidently recover following the downturn of recent years. According to industry analysts, in the third quarter, the total volume of venture investments soared to around $100 billion (almost 40% more than the previous year) — the best quarterly result since 2021. The upward trend has intensified this autumn: in November alone, startups worldwide attracted approximately $40 billion in funding, while the number of mega rounds hit a three-year high. The prolonged "venture winter" of 2022-2023 is now behind us: investors have re-engaged and are increasing their investments in tech startups, though they remain selective, favouring the most promising and resilient projects.
Significant growth in venture activity is observed across most regions. The US firmly retains its leadership (especially in the artificial intelligence segment), investment volumes in the Middle East have grown exponentially, and for the first time in a decade, Germany has outpaced the UK in cumulative venture capital in Europe. In Asia, investments are shifting from China to India and Southeast Asia, compensating for the relative cooling of the Chinese market. Emerging technology hubs are also being established in Africa and Latin America. The startup scenes in Russia and the CIS strive to keep pace despite external constraints, with new funds and support programs being launched, laying the groundwork for future growth. Overall, the global market is gaining momentum, although participants remain cautious and selective.
Below are the key trends and events in the venture market as of 5 December 2025:
- The Return of Major Investors and Mega Funds. Leading venture funds are raising unprecedented amounts and are once again saturating the market with capital, enhancing the appetite for risk.
- Record Investments in AI and a New Wave of Unicorns. Unprecedented funding rounds in the AI sector are driving up startup valuations and leading to the emergence of many new unicorns.
- Revitalisation of the IPO Market. Successful public listings by tech companies and new listing plans confirm that the long-awaited "window" for exits has reopened.
- Sectoral Diversification of Investment Focus. Venture capital is being directed not only to AI but also to fintech, biotech, climate projects, defence technologies, and other sectors.
- A Wave of Consolidation and M&A Deals. Large mergers, acquisitions, and strategic partnerships are reshaping the industry landscape, creating new opportunities for exits and scaling businesses.
- Investment Geography: New Global Hubs. The venture boom is spreading to new regions — from the Middle East and South Asia to Africa and Latin America.
- The Resurgence of Interest in Crypto Startups. Following a prolonged "crypto winter", blockchain projects are once again attracting significant investments against a backdrop of market growth and easing regulation.
- Local Context: Russia and the CIS. New funds and initiatives aimed at developing startup ecosystems are emerging in the region; however, the overall volume of investments remains modest.
The Return of Major Investors and Mega Funds
The largest investment players are triumphantly returning to the venture arena, signalling a new wave of risk appetite. Japan's SoftBank is officially launching its third Vision Fund, targeting around $40 billion, focused on AI and robotics projects. The American firm Andreessen Horowitz is closing a record fund of approximately $10 billion, concentrating on AI infrastructure and rapidly growing tech companies. At the same time, leading Silicon Valley firms such as Sequoia Capital are announcing new early-stage funds (with a total of nearly $1 billion) to support promising startups. Sovereign wealth funds from Gulf countries are also significantly increasing their presence in the tech sector, pouring billions of dollars into innovative projects and developing ambitious government programmes (for example, mega-projects such as Saudi Arabia's NEOM smart city). Numerous new venture funds are emerging worldwide, attracting serious institutional capital. As a result, the market is once again saturated with liquidity, and competition for the most lucrative deals is intensifying.
Record Investments in AI and a New Wave of Unicorns
The artificial intelligence sector has become the primary driver of the current venture upturn, demonstrating unprecedented financing levels. It is estimated that global cumulative investments in AI startups will exceed $200 billion by the end of 2025, with the total valuation of the top ten companies in this field approaching $1 trillion. In 2025, new records for venture rounds have been established: for instance, French startup Mistral AI raised around $2 billion, OpenAI secured a total of approximately $13 billion in funding, and Jeff Bezos's new Project Prometheus launched with investments of $6.2 billion — these deals have driven company valuations sky-high. Similarly, startup Cursor attracted $2.3 billion (valued at approximately $29 billion), placing it among the largest rounds in history and underscoring the frenzy surrounding AI. Such capital concentration has led to the emergence of dozens of new unicorns — companies valued at over $1 billion, many of which are connected to AI technology. Investors are ready to inject vast amounts into the AI race, seeking to establish their niches in this technological revolution.
Revitalisation of the IPO Market and Exit Prospects
After nearly two years of dormancy, a revival of the IPO market is underway as a long-awaited exit mechanism for venture investors. In 2025, several large tech unicorns successfully debuted on the stock exchange, renewing investors' appetite for new public companies. For instance, stablecoin issuer Circle went public with a valuation of around $7 billion, while cryptocurrency exchange Bullish raised approximately $1.1 billion via listing — these cases confirmed that investors are once again willing to buy shares of fintech and crypto companies on the open market. In the wake of these early successes, many startups are eager to take advantage of this new "window of opportunity". According to insider information, even OpenAI is considering going public in 2026 with a potential valuation of up to $1 trillion — an unprecedented scenario for the industry. Improved market conditions and clarified regulations (e.g., the adoption of fundamental laws on stablecoins and anticipation of the launch of Bitcoin ETFs) add confidence to companies planning listings. Experts predict that the number of high-profile tech IPOs will increase in the coming years as the window for exits remains open and the market welcomes new issuers. The return of successful public offerings is critically important for the entire venture ecosystem, as profitable exits allow funds to return capital to investors and reinvest in new projects, completing the investment cycle.
Sectoral Diversification of Investment Focus: Broadening Investment Horizons
In 2025, venture investments cover an increasingly broad spectrum of sectors and are no longer limited to just artificial intelligence. In addition to the dominant AI sector, substantial capital is being directed to other high-tech segments. Following the downturn in previous years, fintech has seen a noticeable revival: major funding rounds are occurring not only in the US but also in Europe and developing markets, fostering the growth of new financial technology services. For example, European neobank Revolut received a valuation of around $75 billion in a recent round — a sign that investor interest is spreading to leading fintech projects. Concurrently, amidst a wave of sustainable development, more funds are being invested in climate and "green" innovations — from renewable energy and waste recycling to new materials for electric vehicles. While the scale of such deals currently pales in comparison to the massive rounds in AI, interest in ClimateTech is consistently on the rise. Biotechnology and healthcare are returning to the radar of venture funds: in the third quarter, healthcare attracted around $15 billion in venture capital (following only AI and IT infrastructure). Individual projects at the intersection of technology and biomedicine are securing large checks — for instance, genome medicine startup Fireworks AI raised $250 million for developing a platform that integrates AI and healthcare. Additionally, investors are increasingly showing interest in aerospace and defence developments: funds are increasingly financing aerospace projects, unmanned systems, cybersecurity, and other hardtech areas. Thus, the investment horizon has significantly widened: alongside AI innovations, substantial investments are also flowing to startups in fintech, biomedicine, climate tech, defence, and other sectors. This diversifies the startup ecosystem and lowers the risk of overheating in any single segment.
A Wave of Consolidation and M&A Deals
The rapid rise in startup valuations and fierce competition for promising markets have triggered a new wave of mergers and acquisitions. Large tech corporations are reactivating strategic M&A, eager to acquire leading teams and technologies. For instance, Google has agreed to acquire Israeli cybersecurity startup Wiz for about $32 billion — a record sum for the Israeli tech sector. Significant deals are also occurring within the venture sector: investment bank Goldman Sachs has announced its acquisition of venture firm Industry Ventures for approximately $1 billion, reflecting the interest of traditional financial institutions in the startup market. Consolidation is also affecting the crypto industry: for example, MasterCard is negotiating to buy blockchain platform Zero Hash for $1.5-2 billion, seeking to strengthen its position in the digital assets space. This activity indicates that the ecosystem has matured: established startups are either merging with one another or becoming acquisition targets for larger players. For venture funds, this means the long-awaited profitable exits and the return of invested capital, which bolsters investor confidence and initiates a new investment cycle. The uptick in deals — from venture platform acquisitions by banks to technological "mega-deals" — signifies the "maturation" of the market and provides startups with more opportunities for scaling and successful exits.
Investment Geography: New Global Hubs
The venture capital investment boom is spreading to new geographies, creating its own technology centres worldwide. The Middle East stands out, with sovereign funds from Gulf countries directing unprecedented amounts of capital into tech companies while simultaneously developing ambitious mega-projects (such as the aforementioned NEOM in Saudi Arabia). As a result, funding for startups in the Middle East has surged in recent years, reflecting the region's ambition to diversify its economy through innovation. Other regional shifts are also occurring: in Europe, as noted, Germany has surpassed the UK in total venture capital for the first time in a decade, confirming the strengthening of continental Europe. In Asia, major growth points are moving beyond China — record capital inflows are attracting India and Southeast Asia against the backdrop of relative slowdown in activity in China. New startup ecosystems are forming in Africa (Nigeria, South Africa, and Kenya emerging as leaders in capital attraction) and Latin America (with Brazil and Mexico solidifying their positions as regional hubs). Thus, innovation is no longer confined to Silicon Valley or traditional "capitals" of venture; the global market is becoming increasingly polycentric, with new technological clusters emerging worldwide.
The Resurgence of Interest in Crypto and Blockchain Startups
Following a protracted crypto winter, the market for blockchain startups is showing noticeable signs of revival. In autumn 2025, funding for crypto projects reached its highest levels in recent years. Regulators in many countries have provided more clarity in the rules of the game: fundamental laws regulating stablecoins have been adopted, and the anticipated launch of the first exchange-traded crypto-ETFs (for Bitcoin and Ethereum) is increasing confidence in the sector. Simultaneously, financial giants are again turning their attention to the crypto market: their return to the industry is creating an additional influx of capital. Furthermore, the price of Bitcoin has finally surpassed the psychologically significant threshold of $100,000, fuelling investor optimism. Startups in the blockchain sector, which have survived the cleanup of speculative projects, are gradually restoring market trust and once again attracting venture and corporate financing. Interest in crypto technologies is returning, although investors are now evaluating business models and project sustainability more rigorously. Many teams are preparing for increased regulation of the industry; however, the overall sentiment remains positive: the Web3 sector is once again being seen by funds as a promising investment direction.
Local Context: Russia and the CIS
In Russia and its neighbouring countries, a number of new venture funds have been launched in the past year, and state structures and corporations have intensified support programmes for tech startups. Despite relatively modest total investment volumes and ongoing barriers (high interest rates, sanctions limitations, etc.), the most promising projects continue to receive funding. According to industry research, Russian startups attracted around $125 million in venture capital over the first nine months of 2025 — 30% more than the previous year, although the number of deals has decreased (in 2025, 103 compared to 120 the year before), and there are virtually no large rounds. The leading sectors for investments in Russia have been industrial technologies (IndustrialTech), medtech/biomedicine, and fintech, with AI/ML technologies taking the top spot (startups in this area have collectively secured around $60 million, accounting for over 30% of all investments). Amidst diminishing foreign capital, state institutions are attempting to support the ecosystem: the Rosnano corporation and the Russian Foundation for Development of Innovations are increasing funding to the sector (specifically, Rosnano plans to direct around 2.3 billion rubles to startup projects by the year's end). Similar initiatives are being implemented through regional funds and partnerships with investors from friendly nations. The gradual development of independent venture infrastructure is already creating a foundation for the future — by the time external conditions improve and global investors can return to the region more actively. The local startup ecosystem is learning to operate autonomously, relying on targeted support from the state and interest from private players from emerging markets.
Cautious Optimism: A Look to the Future
As 2025 draws to a close, moderately optimistic sentiments prevail within the venture industry. The rapid rise in startup valuations (particularly in the AI segment) evokes associations with the dot-com boom era and certain concerns of market overheating. However, the current upswing is simultaneously directing colossal resources and talents towards new technologies, laying the groundwork for future breakthroughs. The startup market is evidently reviving: record volumes of funding are being recorded, IPOs have resumed, and venture funds have amassed unprecedented reserves of capital. At the same time, investors have become considerably more discerning, preferring projects with robust business models and clear monetisation pathways. The key question ahead remains — will the high expectations from the AI boom be justified, and can other industries compete with it in terms of investment appeal? For now, the appetite for innovation remains high, and the market gazes towards the future with cautious optimism.
