Current Startup and Venture Investment News as of 21 December 2025: The Return of Mega Funds, Record Rounds in AI, Revitalisation of the IPO Market, Renaissance of Crypto Startups, and M&A Deals. An Overview of Global Trends for Venture Investors and Funds.
By the end of 2025, the global venture capital market is showing a robust recovery following an extended downturn. Investors worldwide are once again actively funding technology startups: multi-million-dollar deals are being struck, and the IPO plans of promising companies are back in focus. Major venture funds and corporations are returning with record investment programmes, while governments across various nations are intensifying support for innovative businesses. The influx of private capital is providing young companies with the liquidity needed for growth and scaling.
Venture activity is spreading across all regions of the world. The USA remains in the lead, primarily due to colossal investments in the field of artificial intelligence. In the Middle East, investments in startups have doubled compared to last year. In Europe, there is a redistribution of power; for instance, Germany has overtaken the UK in the volume of venture deals, strengthening the positions of continental hubs. India, Southeast Asia, and other rapidly developing markets are attracting record capital amidst the relative selectiveness of investors in China (due to regulatory risks). The startup ecosystems in Russia and the CIS countries are also eager to keep pace despite external constraints. There is clear evidence of a new global venture boom: investors have returned to the market, although they remain selective and cautious in their approach to deals.
- The return of mega funds and large investors. Leading players in the venture capital space are forming unprecedentedly large funds and increasing their investments, once again flooding the market with liquidity.
- Record funding rounds and a new wave of ‘unicorns’ in AI. Unprecedented investments are pushing startup valuations to unseen heights, particularly in the AI segment.
- Revitalisation of the IPO market. Successful public offerings of tech ‘unicorns’ and new applications confirm that the “window of opportunity” for exits remains open.
- The renaissance of crypto startups. The revival of the cryptocurrency market has rekindled investors' interest in blockchain projects, bolstering capital inflow into the crypto industry.
- Defence and aerospace technologies attract capital. Geopolitical factors are stimulating investments in military technologies, space projects, and robotics.
- Diversification of sector focus: fintech, climate projects, and biotech. Venture capital is directed not only towards AI but also fintech, climate initiatives, and biotechnology, broadening the market's horizons.
- A wave of consolidation and M&A deals. High valuations of startups and intense competition for new markets are prompting a wave of consolidation: major M&A deals are creating additional opportunities for exits and scaling.
- Global expansion of venture capital. The investment boom is extending beyond traditional centres—besides the USA, Western Europe, and China, a significant influx of capital is also observed in the Middle East, South Asia, Africa, and Latin America, forming new technology hubs.
- A local focus: Russia and the CIS. Despite sanctions, new funds are emerging in the region to develop local startup ecosystems, signalling a gradual recovery of venture activity.
The Return of Mega Funds and Influx of ‘Big Money’
The largest investment players are triumphantly returning to the venture arena, signalling a renewed appetite for risk. The Japanese conglomerate SoftBank has announced a new Vision Fund III (~$40 billion) for investments in advanced technologies (AI and robotics) and is simultaneously making an “all-in” bet on OpenAI, investing over $20 billion in the company. Sovereign funds of Middle Eastern states have also become more active, pouring billions of dollars into technology projects and launching state-backed megaprojects to develop the startup sector, thereby creating their own tech hubs in the region. Concurrently, new venture funds are emerging worldwide. US venture funds have amassed unprecedented reserves of “dry powder”—hundreds of billions of dollars in unallocated capital ready for action. The influx of “big money” is filling the ecosystem with liquidity, providing resources for new rounds and supporting valuations of promising companies. The return of mega funds and large institutional investors not only intensifies competition for the best deals but also instills confidence in the industry regarding continued capital inflow.
Record Rounds and New ‘Unicorns’: The Investment Boom in AI
The artificial intelligence sector remains the main driver of the venture upswing in 2025, setting new records for funding volumes. Investors are eager to invest in AI leaders, directing colossal sums into the most promising companies. For instance, Elon Musk's startup xAI attracted approximately $10 billion in investments, while OpenAI secured $8.3 billion at a valuation of around $300 billion. Both rounds were multiple times oversubscribed, underscoring the excitement surrounding leading AI firms. Moreover, venture capital is directed not only towards AI applications but also their underlying infrastructure: one AI data storage startup is close to closing a multi-billion-dollar round at an extraordinarily high valuation (investors are ready to finance “shovels and picks” for the entire AI ecosystem). This investment boom is spawning a wave of new ‘unicorns’, although experts warn of the dangers of overheating in this segment.
The IPO Market Comes Alive: The ‘Window of Opportunity’ for Listings Remains Open
The global IPO market has confidently revived after a prolonged lull and continues to gather momentum. In Asia, Hong Kong has initiated a new wave of listings: in recent weeks, several large tech companies have gone public, collectively raising multi-billion-dollar sums, confirming investors' readiness in the region to actively participate in IPOs once more. The situation is also improving in the US and Europe: the American fintech ‘unicorn’ Chime recently debuted on the public market, with its shares soaring 30% on the first trading day. Following this, other well-known startups are preparing for market launches, ensuring that the ‘window’ for new IPOs remains open longer than many had anticipated.
The resurgence of IPO activity encompasses a wide range of companies and is critically important for the venture ecosystem. Successful public exits allow venture funds to realise profitable exits and direct freed-up capital into new projects. Despite investor caution, the prolonged ‘window’ is encouraging an increasing number of startups to consider going public.
Crypto Startups Experience a Renaissance
Following a prolonged downturn, the cryptocurrency market is on the rise again in 2025, rekindling venture investors' interest in blockchain projects. Capital is once again flowing into the crypto industry—from infrastructure solutions and crypto exchanges to DeFi platforms and Web3 startups. Major specialised funds are resuming their activities in this segment, while new crypto startups are attracting significant funding rounds against the backdrop of rising digital asset prices.
Defence and Aerospace Technologies Attract Capital
The geopolitical climate and rising defence budgets are stimulating capital inflows into military and aerospace technologies. Startups creating innovations for the defence sector—from drones and cybersecurity systems to artificial intelligence for the military—are receiving support from both government and large investors. Commercial space projects are also actively financed, including the development of satellite constellations, orbital services, and new rocket technologies. Additionally, dual-use robotics (for military and civilian purposes) is attracting increased capital interest, reflecting the strategic importance of automation.
Diversification of Investments: Fintech, Climate, and Biotech on the Rise
In 2025, venture investments are being spread across an increasingly broad range of sectors rather than being concentrated solely in artificial intelligence. Following last year's downturn, there is a marked revival in fintech: major funding rounds are occurring not only in the US but also in Europe and emerging markets, which is supporting the growth of promising financial projects. At the same time, investors are showing heightened interest in climate technologies, ‘green’ energy, and agri-tech—these areas are receiving record funding in line with the global trend for sustainable development.
Activity in biotech is also recovering: new drugs and medical platforms are once again attracting capital as the industry emerges from a period of declining valuations. This sectoral focus expansion is making the startup ecosystem more resilient, reducing the venture market's dependency on any single dominant trend.
Consolidation and M&A Deals: The Expansion of Players
High company valuations and fierce competition for markets are pushing the startup ecosystem towards consolidation. Major mergers and acquisitions are again coming to the forefront, reshaping the balance of power in the industry. For example, the corporation Google has agreed to acquire the Israeli cybersecurity startup Wiz for $32 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 current activity in mergers and significant venture deals reflects the maturation of the industry. Mature startups are merging with each other or becoming targets for acquisition by corporations, while venture funds are finally gaining opportunities for long-awaited profitable exits. Consolidation improves ecosystem efficiency, allowing companies to combine resources for accelerated growth and entry into the global arena.
Global Expansion of Venture Capital
The venture boom of 2025 is characterised by an increasingly extensive geographical scope. In addition to traditional centres—the USA, Western Europe, and China—a significant influx of capital is also evident in the Middle East, South Asia, Africa, and Latin America. The Gulf region, for instance, is rapidly transforming into a new tech hub due to billion-dollar investments from Saudi Arabia and the UAE in startups. India and Southeast Asia are setting records for venture financing, and ‘unicorns’ are emerging in Africa and Latin America, fostering the growth of local ecosystems. Investors are increasingly seeking opportunities worldwide, contributing to the formation of a truly global startup market.
Russia and the CIS: Local Focus Amidst Global Trends
Despite sanctions and other constraints, there is a revival of startup activity in Russia and neighbouring countries. New venture funds are emerging with volumes of up to 10–12 billion RUB. Local startups are once again attracting capital and even considering going public: for instance, one regional food tech startup secured investments at a multi-billion-dollar valuation and is preparing for an IPO—an indicative example of the seriousness of local initiatives.
Furthermore, foreign investors are once again permitted to invest in Russian projects, gradually rekindling interest from overseas capital. Although the volume of venture investments in the region remains modest, it is steadily increasing.
