Startup and Venture Capital News for Monday, 29 December 2025: Record AI Rounds, Venture Fund Activity, Key Deals, and Global Investment Trends for Venture Investors.
As we approach the end of 2025, the venture market is showing signs of recovery following a protracted downturn. Major funds and corporations are announcing substantial investment programmes, while governments are launching new incentives for tech startups. Investors worldwide are once again actively financing high-tech businesses. The United States remains the flagship, buoyed by a boom in artificial intelligence, while record inflows from sovereign funds in the Middle East are making waves. In Europe, defence and medical technologies are gaining traction. India and Southeast Asian countries are attracting record amounts of capital, even amidst regulatory risks in China. Meanwhile, Chinese authorities are supporting "hard tech" by launching three national funds of 50 billion yuan each to invest in semiconductors, quantum technologies, biomedicine, and other innovative areas. This is thus shaping a new global venture boom with a broad geographic reach.
Major Rounds of the Week
- Swedish startup Lovable secured $330 million (Series B round, valuation $6.6 billion). The company has developed a software generation platform based on textual descriptions, achieving $100 million in annual revenue within just eight months and $200 million within a year.
- American fintech Erebor Bank raised $350 million (Series D, valuation ~$4.35 billion). The bank provides services to crypto and AI companies.
- ZeroAvia (USA/UK) secured $150 million (Series D) to develop hydrogen engines for aviation focused on zero emissions.
- SanegeneBio (USA) raised $110 million (Series B) for the development of RNAi therapies and new medications.
- Israeli company Cyera raised $400 million at a valuation of $9 billion. The startup is creating an AI cybersecurity platform to protect corporate data.
- Latin American fintech Plata raised $500 million in a round from Nomura at a valuation of $3.1 billion. Founded by former Tinkoff Bank executives, the company offers bank cards (with limits up to $200,000) with cashback and credits 2.5 million customers in Mexico.
- Clio (Canada) raised $500 million (Series I, valuation $5 billion). The business travel and expense service closed its round while expanding global sales following the recent IPO of its competitor Navan.
These deals reflect a trend towards capital concentration: according to Crunchbase, over 70% of all investments in American startups in 2025 went to rounds of over $100 million (including the record $40 billion in OpenAI). Similar patterns are observable globally: over 60% of venture capital is directed to mega-rounds. The influx of private capital is driven by large funds (SoftBank, Mubadala, and fund programmes in the USA) and national institutions worldwide.
AI and Investment Boom
The artificial intelligence sector continues to be the driving force behind venture growth. Analysts estimate that in 2025, investors poured over $200 billion into AI projects — nearly half of all global venture capital investments. This is reflected in multiple funding rounds and rising valuations: SoftBank and Nvidia are in talks to invest over $1 billion in the Israeli startup Skild AI (valuation ≈ $14 billion), which develops universal models for robots.
Additionally, several notable projects have secured significant investments:
- Flex (USA/India) raised $60 million (Series B). The fintech startup is creating AI tools for financial management of medium-sized businesses, consolidating the entire corporate finance stack onto one platform.
- GC AI (USA) raised $60 million (Series C, valuation ≈ $555 million). The LegalTech company leverages AI for lawyers and office staff, closing an extended round during the industry's peak.
- Google & Accel AI India (India) invested up to $20 million (with $2 million in 10 startups). The new programme from Google, in partnership with Accel, targets early-stage AI projects in the fields of creativity, entertainment, and automation.
Leading corporations are also expanding their AI ecosystems: Nvidia is licensing the technology of the startup Groq and is bringing its leadership into the fold rather than fully acquiring the business, while OpenAI and major IT companies are actively investing in data centre infrastructure (the Stargate project, with investments from Meta/Google/Oracle). Such events confirm that investments span the entire tech stack — from foundational models to associated services and equipment.
Cybersecurity and Major Deals
The cybersecurity sector continues to experience an arms race as larger players consolidate. Google announced its acquisition of Israeli startup Wiz for $32 billion, while Palo Alto Networks is acquiring CyberArk for $26 billion, marking record prices in the industry. The vendor ServiceNow has agreed to pay $7.75 billion for Armis (a nine-year-old company developing software for protecting critical infrastructures), significantly exceeding its recent valuation. Meanwhile, venture financing is also increasing: Ukrainian-Israeli startup Cyera raised $400 million from Blackstone at its $9 billion valuation.
Overall, defence-cyber technologies remain a focus for investors: the rising demand for cybersecurity is bolstered by new funds (for instance, €125 million from Keen VC for European defence startups) and active M&A transactions that are preparing new growth points for capitalization.
Fintech, Cryptocurrencies, and New Banks
The fintech space has been inundated with funds. Mexican fintech Plata, founded by former Tinkoff Bank executives, achieved a valuation of $3.1 billion following its latest $500 million round, making it a leading market player in Latin America. The American "crypto-bank" Erebor Bank attracted $350 million, expanding its lending services to blockchain companies. Niche solutions are also receiving support, exemplified by New York-based startup FINNY, which raised $17 million for its AI platform aimed at financial advisors and CRM systems.
Following a deep downturn, 2025 has emerged as a year of renewed interest in crypto startups: with the market stabilising, blockchain projects are once again attracting venture investments and are hoping for long-term funding. This aligns with global trends, as VC funds are allocating resources into DeFi, stablecoins, and related infrastructure solutions as cryptocurrency services become integrated into traditional finance.
Medicine, Biotechnology, and Eco-Technology
Innovation in medicine and the "green" economy has also captured the attention of venture investors. The Boston biotechnology project SanegeneBio raised $110 million for the development of new RNAi therapies. New York startup Neurable (neurointerfaces EEG) closed a $35 million Series A to produce wearable devices for monitoring brain states. American platform Truemed (with Andreesen Horowitz among its investors) raised $34 million for a service utilising HSA accounts for wellness purchases. Furthermore, venture funds are financing AI safety projects: Red Queen Bio secured $15 million from OpenAI to develop AI tools for detecting bio-threats.
In the realm of ecology and transportation, a key event was the continued financing of "green" technologies. Startup ZeroAvia raised $150 million for the development of hydrogen engines for aircraft, further strengthening investment trends in alternative energy and clean transport. Thus, diversification of investments extends beyond AI — attention is also being drawn to climate and medical innovations.
Government Support and Investment Geography
In tandem with private investments, government initiatives to support startups are on the rise. China has announced the establishment of three venture funds (each exceeding 50 billion yuan) for early startups in "hard tech" (chips, quantum technologies, biomedicine, and more). In India, Google is launching a new AI fund in partnership with Accel, planning to invest $2 million each in ten promising local startups. A specialisation is emerging in Europe: the Dutch fund Keen VC is attracting €125 million for defence and aerospace projects, while sovereign funds from the UAE, Saudi Arabia, and Singapore have increased their presence in fintech and green technologies in 2025.
Regional ecosystems continue to thrive: in Latin America and Africa, the first unicorns have emerged (in fintech, e-commerce, etc.), underscoring the global nature of venture growth. Despite sanctions, Russia and the CIS are witnessing a resurgence in startup activity, with new local funds and accelerators being launched to align projects with global trends.
Corporate Deals and Outlook
Activity in the M&A and IPO markets is enhancing the overall landscape. Major tech companies continue to build their portfolios: Nvidia licensed the architecture of startup Groq and hired its founder instead of purchasing the entire business. Many startups are preparing for IPOs: for example, Navan (previously TripActions) and eToro completed successful IPOs, demonstrating their exit potential to investors. In the meantime, corporations are accumulating funds for acquisitions; amidst heightened valuations and decreased lending rates, a new wave of deals is anticipated in 2026.
As the New Year approaches, the startup market greets it with a moderately optimistic outlook: by the end of 2025, investments and deal valuations are nearing record levels, and the portfolios of funds and companies are gearing up for profitable exit strategies. Investors are focusing on established sectors (AI, fintech, biotech, clean technologies), while also paying attention to diversification and risk assessment. The year concludes with a strengthening of faith in the long-term potential of technological innovations and expectations for sustained investment activity in 2026.
