Current News on Startups and Venture Investments as of 30 October 2025: Record Rounds in AI, New Venture Funds, M&A Deals, Mega Investments, and Key Market Trends. Discover Where Venture Capital is Headed Worldwide.
The global market for startups and venture capital continues to exhibit high activity amidst impressive performances in the technology sector. As of Thursday, 30 October 2025, several trends are capturing the attention of venture investors: record financing volumes for AI startups, the launch of major new venture funds, and a series of multi-million dollar investment rounds. Below, we explore the key startup news, deals, and trends shaping the current landscape of the venture market.
Record Investments in AI Startups Alleviate Bubble Concerns
Investments in AI-related startups are reaching unprecedented levels. According to industry analysts, over $160 billion has been invested in AI startups since the beginning of 2025, with this figure expected to exceed $200 billion by the year's end. Such massive capital influxes dispel previous concerns regarding a ‘bubble’ in the AI sector. The financial results of technology leaders confirm that the rise in valuations is supported by real revenues. For instance, NVIDIA became the first company in history to achieve a market capitalisation exceeding $5 trillion, underscoring that the enthusiasm surrounding AI is grounded in actual commercial success. Investors are increasingly confident that the current surge in interest in AI will transform into a sustainable growth cycle driven by fundamental indicators rather than mere enthusiasm.
Mega Rounds Dominate, Venture Capital Concentrates
The venture market is becoming increasingly polarised: the lion's share of funds is directed towards the largest deals. By the end of the third quarter, nearly half (approximately 46%) of all global venture investments were directed towards companies in the AI sector. Notably, almost a third of the global investment volume for the quarter was captured by just one company – generative AI developer Anthropic, which raised around $13 billion. Overall, so-called ‘mega rounds’ (financing of startups exceeding $100 million) accounted for a record 60% of all venture investments worldwide (up to 70% in the USA). The current year is on track to reach peak figures similar to those of 2021 in terms of the total volume of large rounds. Unlike the boom period of 2021, when funds were dispersed across numerous sectors and stages, capital is now primarily concentrated around a few mature AI companies. Smaller startups and traditional sectors (such as cybersecurity or medtech) are receiving significantly less attention from investors.
New Venture Funds Bring ‘Dry Powder’ to the Market
Despite selective investment patterns, the startup ecosystem continues to see the emergence of new mega funds – large investment funds ready to finance breakthrough projects. For instance, legendary Sequoia Capital has announced the launch of two new funds totalling $950 million, aimed at early stages (including a separate fund of $200 million for seed investments). The thematic focus of the funds is shifting towards future technologies; for example, venture firm Town Hall Ventures has raised $440 million to invest in AI solutions for healthcare, expanding access to medicine for underserved communities. These examples demonstrate that leading venture players still possess ample ‘dry powder’ – capital reserved for promising venture investments, particularly in the fields of artificial intelligence, biotechnology, and climate innovations.
Biggest Rounds of the Week: New Unicorns and Decacorns
The past week was marked by several impressive funding rounds that bolstered confidence in the market. Among the most notable deals:
- Crusoe (USA) – raised $1.375 billion in a Series E round, achieving a valuation of over $10 billion. The startup is developing infrastructure for energy-efficient data centres designed for AI tasks and has become one of the new ‘decacorns’ (companies valued over $10 billion).
- Redwood Materials (USA) – secured $350 million in investment (Series E round) to expand the production of battery materials and recycling. The capital will help the startup accelerate the development of energy storage technologies vital for the electric vehicle market and sustainable energy.
- Mercor (USA) – an AI platform for talent matching, closed a Series C round at $350 million, reaching a valuation of $10 billion. In just two years, the startup has grown into a global player in the expert hiring field for training neural networks, becoming one of the fastest-growing unicorns.
These deals confirm the market's readiness to support both mature and rapidly growing startups with the potential to disrupt industries. Notably, nearly all of the largest rounds are related to AI or adjacent fields, reflecting current investor priorities. Traditional sectors like biotechnology or fintech also remain on the radar; however, the largest sums are directed towards leaders in the most promising areas.
OpenAI: Restructuring and Largest Valuation in the Private Market
One of the central events in the market has been the completed restructuring of OpenAI – the creator of ChatGPT and a leader among AI startups. OpenAI has undergone a structural transformation: a non-profit fund controlling 26% of the votes has been established, while the share of the largest stakeholder, Microsoft, has been reduced to 27%. This has increased OpenAI's independence and strengthened public oversight of its activities, directing future profits towards charitable purposes. Meanwhile, the company maintains a close partnership with Microsoft but has gained greater flexibility in attracting external capital. OpenAI's valuation in the private sector has reached a record $500 billion, making it the most valuable privately-held company. Management has noted that the restructuring has already simplified the process of attracting new investments – the CFO emphasised that lifting previous restrictions facilitates negotiations with investors. Thus, OpenAI is solidifying its position for further growth without going public, setting a precedent for combining commercial and non-profit objectives in a large technology startup.
Mergers and Acquisitions: Consolidation in High Tech
Amid the venture boom in the AI sector, there is also an increase in consolidation among technological players. The largest M&A deal of the week was the merger of two American chip manufacturers – Skyworks Solutions and Qorvo. The union of companies valued at $22 billion will create a powerful supplier of radio frequency chips for smartphones, IoT devices, and 5G networks. This deal is aimed at strengthening their positions against Asian competitors and optimising R&D expenses, although a regulatory review may occur due to market concentration. This example reflects a trend: large technology firms are looking to scale and enhance their capabilities through mergers, particularly in the hardware segment, which is critical for the AI industry.
Concurrently, corporations are actively collaborating with startups, investing in new directions. For example, defence giant Northrop Grumman has announced a strategic partnership with a young space startup to develop satellites with AI design – demonstrating how large companies seek innovation at the intersection of their own R&D and the startup ecosystem. Although the number of billion-dollar ‘exits’ (sale of startups or IPOs) remains limited for now, such deals point to existing pathways for investors and strategic players' interest in advanced startup technologies.
New Trends: From Renewable Energy to Neurointerfaces
Among other trends this week is a focus on sustainability and breakthrough technologies. Co-founder and CEO of OpenAI Sam Altman called on the US to double its investments in renewable energy (to 100 GW of new capacity annually) to outpace China in the race for energy superiority. This call illustrates how leaders in the AI industry highlight the connection between technology and global challenges, stimulating support for ‘green’ startups and infrastructure projects.
Continuing the theme of innovation, Sam Altman himself has this week acted as an investor and co-founder of a new startup Merge Labs, which is working on a ‘thought-reading’ interface. The Merge Labs project is developing a non-invasive neurointerface capable of reading brain activity using ultrasound without surgical implants – in contrast to Elon Musk’s Neuralink approach. The startup aims to raise up to $250 million in funding and is already considered one of the most ambitious in the field of neurotechnology and AI. Altman's involvement signals venture capital's interest in a new generation of ‘deep’ technologies at the intersection of biology and artificial intelligence.
A Look Ahead
The culmination of all these events confirms that the global startup ecosystem is on the rise, albeit with certain shifts in structure. Venture investors are actively deploying capital, particularly in the fields of AI, climate technologies, and biomedicine. The primary trend is the concentration of resources around leaders and the most promising projects capable of scaling and defining industry developments. For entrepreneurs, this means the necessity to clearly demonstrate uniqueness and growth potential to attract attention amid a decline in the number of smaller deals. At the same time, large funds, armed with new billions, are seeking opportunities for the next ‘unicorn’ or technological breakthrough.
As we approach the end of 2025, the venture investment market looks forward with cautious optimism: despite uncertainty, the technology sector proves its resilience. The successes of AI companies and the steady demand for innovations create a foundation for new venture victories. Venture investors and funds are ready to continue supporting groundbreaking startups, shaping global competition for the next big success. It is evident that the narratives dominating startup news and the venture market centre around themes of artificial intelligence, climate initiatives, and advanced technologies – a trend likely to persist into next year.
