Major Investment Rounds in Startups Worldwide: Growth in AI Funding, the Return of Mega Funds, and a New Wave of IPOs by the End of 2025. A Detailed Overview for Venture Investors.
By the end of October 2025, the venture market is showing a strong revival. Investors have returned, pouring record amounts into promising technology startups, particularly in the field of artificial intelligence (AI). After several years of relative caution, large funding rounds have made a comeback, with several companies attracting hundreds of millions and even billions in investments. Simultaneously, a new wave of IPOs is on the horizon, signalling that startups are once again ready to go public under improved conditions.
The Venture Market Revives by the End of 2025
According to industry analysts, the global volume of venture investments in the third quarter of 2025 reached around $97 billion — a significant increase of several percentage points compared to the previous year. As a result, the market demonstrated its best quarterly performance since 2021, with each of the last four quarters exceeding the $90 billion mark. After a downturn in 2022–2023, startup funding has consistently risen for four reporting periods in a row, indicating a resurgence of investor confidence. The growth has primarily been driven by mega-deals in the AI sector, but revitalisation is noticeable at other stages as well: late-stage investments, in particular, have seen substantial year-on-year increases. Two-thirds of venture capital in the recent quarter went to US startups; however, activity is also evident in Europe, Asia, and other regions, reflecting the global nature of the upswing.
Record Investments in AI Continues
The artificial intelligence sector remains the main magnet for venture capital in 2025. According to PitchBook, since the beginning of the year, AI startups in the US have raised over $160 billion in investments, which accounts for about two-thirds of all venture fund investments. By the end of the year, global investments in AI companies could surpass $200 billion — an unprecedented figure for the industry. The combined valuation of the ten largest AI startups (including OpenAI, Anthropic, xAI, and others) has approached $1 trillion. Investors explain the excitement by the fact that artificial intelligence has the potential to radically enhance efficiencies across various sectors of the economy, opening up multi-trillion-dollar markets from software development automation to virtual assistants. Despite concerns over overheating and a potential "bubble," venture funds continue to actively invest in AI startups, eager not to miss out on a new technological revolution.
Major Rounds and New Unicorns
In recent weeks, several startups have announced large funding rounds, confirming the return of "big cheques" to the market:
- Harvey (USA) — raised $150 million at a valuation of $8 billion to develop a legal AI platform (lead investor: Andreessen Horowitz).
- Synthesia (UK) — $200 million at a valuation of $4 billion for scaling its AI-generated video service (the round was led by GV — the venture arm of Alphabet).
- Fireworks AI (USA) — $250 million in a Series C round (valuation around $4 billion) to expand its AI platform in genomics and healthcare.
- Legora (Sweden) — $150 million (valuation $1.8 billion) for the development of legal AI software; the startup was founded in 2023 and has become one of Scandinavia's new "unicorns."
- OpenAI — has raised approximately $40 billion in funding from investors (including a mega investment from SoftBank), making the company the most valuable private firm in the world (around $500 billion valuation) and a potential candidate for a record IPO.
- Polymarket (USA) — the crypto platform raised $2 billion in October (valuation $9 billion) with participation from Intercontinental Exchange (ICE), becoming one of the largest rounds of the year outside the AI sector.
Capital Concentration: Mega Rounds in Focus
The rapid increase in investments is accompanied by a high concentration of capital among a limited pool of companies. Approximately 70% of all investments in US startups in 2025 went to large rounds of $100 million or more — a record share comparable only to the boom of 2021. Globally, this figure reached approximately 60%. Investors are increasingly making large bets on leaders: only 18 companies received a third of all venture money in the third quarter, each attracting $500 million or more. Capital is primarily concentrated around AI frontrunners: the eight largest AI players absorbed roughly 62% of sector investments this year. OpenAI alone, which received around $40 billion from SoftBank, accounted for a significant portion of all mega-rounds. While late-stage investments are thriving due to record deals, funding for early-stage startups remains steady, albeit without a similar surge. Concurrently, merger and acquisition (M&A) deals are reviving in the market, creating additional exit opportunities for investors and consolidating the industry.
The Return of Mega Funds and Investor Confidence
Simultaneously, "mega funds" are returning to the stage — large venture players are actively raising capital for new investments once more. Following a downturn in venture fundraising during 2022–2024, leading funds are resuming fundraising efforts, displaying confidence in the market's prospects. In October, Sequoia Capital announced the creation of two new funds with a total volume of $950 million (including $750 million for early-stage and $200 million for seed investments). The emergence of such funds means that startups will soon have more opportunities to secure funding, as large investors prepare for the next wave of technological growth, having accumulated significant "war chests" of capital.
The Revival of IPOs and Exit Prospects
Against the backdrop of rising valuations and capital influx, startups are once again eyeing public markets. Following a lull over the past two years, a revival of IPOs is underway as a potential exit strategy for venture investors. Insider information suggests that OpenAI is considering an IPO as early as 2026, with a potential valuation of up to $1 trillion — an unprecedented level for the tech sector. In the crypto industry, ConsenSys (developer of the MetaMask wallet) has hired JPMorgan and Goldman Sachs to prepare for its historic IPO, planned for 2026 — this will mark the first public exit of a major blockchain developer connected to the Ethereum ecosystem.
Earlier this year, several high-tech firms successfully went public, including stablecoin issuer Circle (valued at around $7 billion) and crypto exchange Bullish, demonstrating a recovery of investor appetite for new listings. Improved market conditions and a gradual clarification of regulatory requirements (for example, the recent resolution of SEC claims against ConsenSys regarding its services) provide additional confidence to companies planning IPOs. Major startups are beginning to see the public market as a viable avenue for raising capital and ensuring liquidity for investors, setting the trend for an increase in high-profile exits in the coming years.
Beyond AI: Healthcare, Climate, and Space
Despite the dominance of AI projects, significant funds are also being directed towards other high-tech spheres. Healthcare and biotechnology attracted approximately $15–16 billion in venture capital in the third quarter — the third highest figure after AI and IT infrastructure. A notable example is the startup Fireworks AI, which secured $250 million to develop its AI platform for genomic medicine, pushing solutions at the intersection of technology and healthcare. Investors are also backing climate and "green" projects: Australian startup Uluu raised AUD 16 million to develop biodegradable plastic from seaweed, while Indian company Tsuyo Manufacturing obtained INR 40 million to expand production of components for electric transport. These transactions are modest in size but reflect the sustained interest of venture funds in sustainable development and eco-friendly technologies.
Additionally, there is growing attention towards space and hardware startups. Bulgarian company EnduroSat raised $104 million (with participation from Google Ventures, Lux Capital, and others) to scale production of small satellites, responding to market demand for affordable space communications. Overall, "hard" deep tech is also on the rise: in 2025, major rounds have been secured by robotics, semiconductor, and quantum computing manufacturers, collectively raising tens of billions. Although investment volumes in these sectors lag behind the phenomenon of AI, venture capital in 2025 is being distributed across the entire spectrum of innovations — from medicine and eco-tech to space — supporting a diversity of technological progress.
Crypto Startups Return to the Game
Following a prolonged downturn amid the "crypto winter," investors are once again showing interest in blockchain startups. In October, venture funding for crypto companies noticeably increased: in just the first week of the month, approximately $3.2 billion was invested in 20 projects. The leader was the American project Polymarket, which raised a record $2 billion (valuation $9 billion) with support from the exchange operator ICE — one of the largest deals of the year outside the AI sector. Following this, the prediction platform Kalshi secured $300 million (valuation $5 billion), reaffirming the market's readiness to invest in new financial technologies at the intersection of traditional markets and cryptocurrencies.
Overall, infrastructural solutions for digital assets are also receiving support from venture funds. For instance, US startup Hercle raised $60 million to develop stablecoin infrastructure, while several other projects secured funding for blockchain services for banks and businesses. Meanwhile, leading players in the crypto market are reaching a new level of maturity — the upcoming IPO of ConsenSys, accompanied by major banks, signals a convergence between the crypto industry and Wall Street. Easing regulatory uncertainty in the US and an increase in interest from institutional investors (including the participation of traditional financial giants in funding rounds) underpin the capital's return to the Web3 sector.
Conclusion: Cautious Optimism
After a year of impressive deals and renewed growth, market participants exhibit a cautiously optimistic mindset. On one hand, the unprecedented surge in valuations and funding volumes — especially in the AI segment — draws parallels to the dot-com bubble of two decades ago. However, many venture capitalists note that such "bubbles" also have positive effects: they concentrate vast capital and talent in new directions, ultimately leading to technological breakthroughs, even if some projects inevitably fail. As industry insiders say, one or two successful giants will recoup dozens of failures.
As we approach 2026, venture investors worldwide are striving to balance the urge not to miss the next technological revolution with a sober assessment of risks. The startup market has clearly revived: new records are being set, but investors have become more selective, focusing on the most promising directions. The main intrigue remains whether high expectations for the AI boom will be justified and whether other sectors can narrow the gap in fundraising volumes. For now, one thing is clear: the appetite for innovation is once again high, and the venture ecosystem is entering a new year with a clear charge of energy and capital.
