Startup and Venture Capital News — Wednesday, 24 December 2025: The Dominance of AI, The Return of Mega Funds, and The Revival of IPOs
By the close of 2025, the global venture capital market is exhibiting robust growth following several years of decline. Investment volumes in startups have significantly increased, with major players and institutional investors active once again. Governments in various countries are launching initiatives to support innovation. The overall dynamics indicate the beginning of a new cycle of venture growth, although investors remain selective and cautious in their approach to deals.
Venture activity is on the rise across all regions. The United States maintains its leadership (particularly in the artificial intelligence (AI) segment), The Middle East is witnessing record investment growth, while India, Southeast Asia, and countries in the Gulf region are attracting significant capital amidst a relative downturn in China. Russia and the CIS, despite external constraints, are striving to develop their own startup ecosystems. Africa and Latin America are also recording an influx of investment and the emergence of new technological companies. The return of large capital is a global trend, albeit unevenly distributed across countries and sectors.
Below are key events and trends shaping the current agenda of the venture market as of 24 December 2025:
- AI Dominates Venture Investments. For the first time, startups in the AI sector account for nearly half of all investments.
- The Return of Mega Funds and Large Investors. Leading venture funds have increased their volumes, launching new investment "mega funds," which have injected capital back into the market.
- Record Mega Funding Rounds and New "Unicorns." Unprecedented funding rounds are elevating startup valuations to new heights, leading to the emergence of dozens of new unicorn companies.
- Revival of the IPO Market. Successful public offerings of technology companies and new applications confirm that the long-awaited "window" for exits remains open.
- Diversification of Sectors. Venture capital is being directed not only towards AI but also to fintech, climate technologies, biotech, defence developments, and cryptocurrency projects.
- Consolidation and M&A Deals. Major mergers, acquisitions, and strategic investments are reshaping the market, creating opportunities for exits and scaling.
- Local Focus: Russia and CIS. New funds and support programmes aimed at stimulating the growth of local startups are emerging in the region, even in the face of limitations.
AI Captures a Record Share of Venture Funding
The artificial intelligence sector has become the main driver of the venture market in 2025. By the end of the year, AI startups accounted for approximately 50% of the global volume of venture investments (over $200 billion of the total). In comparison, the previous year, the share of AI was around 34%. Investment in the AI sector has increased by approximately 75% compared to 2024, marking an unprecedented surge.
Colossal amounts are being directed towards both developers of generative AI models and companies creating the infrastructure and applications based on AI. The two most valuable private startups globally are now associated with artificial intelligence: OpenAI is valued at around $500 billion (following another funding round of tens of billions of dollars), while its competitor, Anthropic, reached a valuation of about $180 billion. Together, these two companies attracted around 14% of all venture investments worldwide over the year. The United States completely dominates this segment, with approximately 80% of investments in AI startups directed towards American companies, with Silicon Valley alone attracting over $120 billion.
The AI boom is radically transforming the venture industry. Major tech corporations and funds are actively participating in massive funding rounds: for instance, Meta invested $14.3 billion in Scale AI, while SoftBank led a record funding round for OpenAI (around $40 billion). As a result, the largest players are accumulating a substantial portion of capital while also stimulating the overall development of the sector. The future question remains whether AI leaders will continue to attract tens of billions in investments annually or seek alternatives, such as partnerships for access to computational resources.
The Return of Mega Funds: Big Money is Back in the Market
In 2025, the largest investment players made a triumphant return to the venture arena. After a hiatus in recent years, leading funds and investors are once again prepared to invest significant sums into startups. The Japanese conglomerate SoftBank launched its third Vision Fund with an approximate volume of $40 billion, targeting advanced technologies (AI, robotics, etc.). Sovereign funds from the Middle East have also increased their activity: billions of dollars are being invested by state investors in technology projects while state mega projects and tech hubs are being created to support the startup sector.
Concurrently, new venture funds of all sizes continue to emerge worldwide. In December alone, the total volume of newly announced funds exceeded $9 billion (with at least 16 new venture and private funds launched during the month). Large global funds have accumulated record amounts of dry powder: in the United States, venture investors hold hundreds of billions of dollars in uninvested capital, ready to be deployed. This influx of "big money" is infusing the ecosystem with liquidity, providing resources for new funding rounds and supporting the growth of valuations among promising companies.
In addition to private funds, government initiatives are beginning to play a significant role globally. For example, in Europe, the Deutschlandfonds has been launched with a volume of €30 billion, aiming to attract up to €130 billion in private investments into technology startups, energy transformation, and industry in Germany. Governments recognise the importance of the venture market for economic competitiveness and are ready to act as temporary catalysts for investments. The return of major capital sources—both private and public—instils confidence in the industry regarding the continued growth of venture investments.
Record Rounds and New "Unicorns": An Investment Boom
The venture market in 2025 is characterised not only by overall growth but also by the concentration of capital in the largest deals. Mega rounds (hundreds of millions and billions in a single round) have become commonplace, especially in the AI sector. The lion's share of all funds has been concentrated in a limited number of companies: estimates suggest that a few dozen startups received about a third of the total funding for the year. Late-stage rounds (Series C and beyond) grew by more than 60% compared to the previous year, while the number of early-stage deals is decreasing. A "two-speed" market is forming: the largest "unicorns" easily attract billion-dollar cheques, while younger teams find it more challenging to close rounds— investors are setting higher demands for product performance and revenue.
Nevertheless, the investment boom has led to a new wave of unicorn companies. In 2025, dozens of startups globally achieved unicorn status (valuation over $1 billion)— marking the most significant emergence of highly valued companies since the boom of 2021. Unicorns are especially prevalent in the AI and fintech sectors, but they can also be found in other industries. While experts warn of overheating risks, many funds are eager to seize opportunities to invest in potential market leaders at relatively early stages of their growth.
Examples of significant venture rounds in 2025:
- OpenAI — attracted about $40 billion in investments over the year (a record round led by SoftBank), achieving a valuation of approximately $500 billion.
- Anthropic — received multi-billion funding from a consortium of investors (including major tech giants), elevating its valuation to around $180 billion.
- Scale AI — a data startup for AI raised $14.3 billion from Meta and partners, becoming one of the year's largest rounds.
- Cerebras Systems — a hardware accelerator developer for AI secured $1.1 billion in a Series G round (valuation ~$8 billion) with participation from Fidelity and others.
- Vercel — an AI-focused web development platform closed a $300 million Series F round at a valuation of $9.3 billion.
- Crystalys Therapeutics — a US biotech startup raised $205 million in a Series A round for new drug development (one of the largest rounds in biopharma this year).
The IPO Market Revives: The Window for Exits is Open
Following a prolonged hiatus from 2020–2023, the global IPO window has finally swung open. 2025 has brought a series of successful public offerings from venture companies, reviving investor confidence in the stock market for tech newcomers. In Asia, Hong Kong has initiated a new wave of IPOs: several major Chinese tech firms have gone public, raising billions of dollars collectively (for instance, battery manufacturer CATL listed shares worth $5.2 billion). In the USA and Europe, the situation has also improved: American fintech unicorn Chime made a successful debut on the New York Stock Exchange (with shares rising by 30% on the first trading day), followed by others including Swedish payment service Klarna. The total number of unicorns that conducted IPOs in 2025 exceeds two dozen, significantly higher than the zero figures from the previous two years.
Investors are once again prepared to consider IPOs as a realistic exit scenario. Moreover, even larger offerings are anticipated for 2026: for instance, SpaceX is publicly preparing for an IPO with a potential valuation of up to $1.5 trillion — which could become the largest tech IPO in history. Successful public exits are critically important for the venture ecosystem: they enable funds to realise profits and free up capital for new investments. Although the market remains selective (not all recent IPOs are trading above their offering price), the very existence of an "opportunity window" has revitalised the later stages of the venture market. Many mature startups are accelerating their preparations for public offerings, hoping to take advantage of favourable circumstances.
Diversification of Investments: Broader Sector, Broader Opportunities
The vigorous growth of AI does not imply that all capital is flowing into just one sector. On the contrary, 2025 has marked a resurgence of funding across many other sectors. Fintech is regaining the attention of investors: significant rounds have occurred not only in Silicon Valley but also in the European market and emerging economies. Climate technologies are attracting increasing funds against the backdrop of a global trend towards sustainability; various funds focused on clean-tech and energy startups have emerged in both Europe and the USA (notably, numerous large deals have transpired in the renewable energy and electric vehicle infrastructure sectors).
Biotech continues to receive financing: despite associated risks, investors are backing promising biomedical projects (particularly in genetics and pharmaceutical developments — cases in point include multi-million funding rounds for Crystalys Therapeutics and Star Therapeutics). Defence technologies and aerospace startups are also on the rise— geopolitical factors are fueling demand for new developments in security, unmanned systems, and space services. Finally, following a decline in interest in previous years, the segment of blockchain startups and crypto-financial services is making a comeback: the rise in cryptocurrency prices in 2025 has rekindled interest from some venture funds in this direction, and a number of blockchain projects have managed to secure rounds worth tens of millions of dollars.
Hence, by the end of 2025, the venture market has become more diverse. Investors are broadening their horizons in search of promising directions, understanding that the next "big thing" could emerge not only in AI but at the intersection of various sectors—from fintech and health to energy and environmental protection.
Consolidation and M&A: The Size of Players Increases
The return of significant money and high startup valuations have led to a new wave of market consolidation. Major companies and leading unicorns have activated mergers and acquisitions to strengthen their positions and gain access to technologies. For instance, in 2025, OpenAI acquired the startup Statsig, expanding its suite of tools for developers. Corporations are once again "on the hunt" for promising teams: for example, corporate software developer Workday acquired the AI startup Sana (specialising in HR process automation), while Google-funded Isomorphic Labs purchased several smaller biotech projects to enhance its portfolio.
Simultaneously, some conglomerates are optimising their innovation departments by spinning off non-core areas into independent companies (spin-offs). This opens up opportunities for venture deals: new startups are emerging within large companies and obtaining initial funding for independent growth. The surge in M&A deals and corporate spin-offs is transforming the industry landscape by consolidating key players and providing investors with exits through acquisitions. For venture funds, this means more exit options beyond the IPO route.
Consolidation is particularly noticeable in competitive areas: mergers in fintech are occurring for client bases, in the AI sector for access to unique models or data, and in cybersecurity for the integration of solutions. Although acquisitions are reducing the number of independent startups, they indicate market maturation: the most successful projects attract the attention of giants and become part of larger ecosystems. This is a natural path for many teams and an important indicator of the health of the venture market, where the strongest are given the chance to scale through merger deals.
Russia and the CIS: The Local Market Seeks Growth
Against the backdrop of global trends, the startup ecosystem in Russia and the CIS is striving to emerge from a prolonged downturn in 2025. Despite geopolitical restrictions and a reduction in foreign capital, a revival of local venture activity has been observed during the second half of the year. New funds and investors focusing on the domestic market are emerging. For example, the communications group "Mikhailov and Partners" announced the establishment of the Rosventure fund for investment in technology projects, while the cybersecurity systems developer R-Vision launched a corporate venture fund worth 500 million rubles. In addition, several targeted funds and accelerators have been formed (including the "Sirius Innovations" fund in partnership with the RFPI for 1 billion rubles) to finance promising Russian startups with governmental support.
The total volume of venture investments in Russia for the year remains modest compared to market leaders; however, there are signs of stabilisation. Major domestic IT companies (such as Yandex and Sber) continue to invest in new directions, although a total of only about $30 million was directed towards AI projects within the country in 2025. Nonetheless, the local venture market is active: deals are being made, and technologies are being developed for both the domestic and neighbouring markets. Among notable deals of the year are investments from the KAMA FLOW fund (alongside OSNOVA Capital) into projects focused on developing AI platforms:
- Platformeco — attracted 100 million rubles from KAMA FLOW for the development of a platform for integration and management of APIs related to AI agents.
- Piklema Group — received 1 billion rubles in investments from the joint fund KAMA FLOW and OSNOVA Capital to scale its technological solutions in the Russian market.
Although the scale of financing in the region is small, the emergence of new funds and deals inspires optimism. Local investors and corporations are assuming the role of innovation drivers in the absence of significant foreign investments. Niche areas are being developed, from agro-tech to projects in import substitution. Russia and its neighbouring countries are striving not to miss the global trend toward technological entrepreneurship, laying the groundwork for future growth as external conditions improve.
Conclusions: Modest Optimism at the Threshold of 2026
The end of 2025 is marked by a recovery in the venture industry and a renewal of investor confidence. Significant rounds and IPOs have demonstrated the market's viability, while the emergence of new funds promises a continued influx of capital. At the same time, a degree of caution remains: funds are meticulously selecting projects, avoiding excessive euphoria. The focus remains on quality growth and the long-term sustainability of startups.
Venture investors are entering 2026 with measured optimism. Funding rates are expected to remain high, particularly in leading sectors like AI, while a certain correction in valuations may occur following the rapid rise. A key success factor will be the ability of startups to demonstrate real business development and technology monetisation. Overall, the venture market is emerging from a downturn stronger and more mature: the accumulated dry powder is ready for deployment, and startups worldwide stand a chance to transform received investments into groundbreaking products and services.
