Current News on Startups and Venture Investments as of December 21, 2025: The Return of Mega Funds, Record Rounds in AI, Revitalization 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 demonstrates a robust recovery following a prolonged downturn. Investors worldwide are once again actively funding technology startups: multi-million dollar deals are being struck, and IPO plans for promising companies are re-emerging. Major venture funds and corporations are returning with record investment programs, while governments around the world are increasing support for innovative businesses. The influx of private capital is providing young companies with the liquidity needed for growth and scaling.
Venture activity spans all regions of the globe. The United States continues to lead the way, primarily due to colossal investments in artificial intelligence. In the Middle East, the volume of investments in startups has doubled compared to last year. Europe is experiencing a shift in power dynamics: for instance, Germany has surpassed the UK in the volume of venture deals, strengthening the positions of continental hubs. India, Southeast Asia, and other rapidly growing markets are attracting record capital amid investors' relative selectiveness towards China (due to regulatory risks). Startup ecosystems in Russia and the CIS are also striving to keep pace, despite external constraints. A new global venture upturn is unmistakable: investors have returned to the market, albeit still approaching deals selectively and cautiously.
- The return of mega funds and large investors. Leading venture players are forming unprecedentedly large funds and increasing investments, once again filling the market with liquidity.
- Record funding rounds and a new wave of “unicorns” in the AI sector. Unprecedented investments are pushing startup valuations to unseen heights, especially in the artificial intelligence segment.
- Revitalization of the IPO market. Successful exits of tech unicorns to exchanges and new applications confirm that the “window of opportunity” for exits remains open.
- The renaissance of crypto startups. The rise of the cryptocurrency market has rekindled investor interest in blockchain projects, intensifying the capital influx into the crypto industry.
- Defense and aerospace technologies are attracting 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 being directed not only into AI but also into fintech, climate projects, and biotechnology, broadening market horizons.
- A wave of consolidation and M&A deals. High startup valuations and fierce competition for new markets are prompting a wave of consolidation: major M&A deals are opening additional exit and scaling opportunities.
- Global expansion of venture capital. The investment boom is expanding beyond traditional centers—besides the US, Western Europe, and China, a significant influx of capital is observed in the Middle East, South Asia, Africa, and Latin America, forming new technology hubs.
- Local focus: Russia and the CIS. Despite sanctions, new funds are emerging in the region to support local startup ecosystems, signaling a gradual recovery of venture activity.
The Return of Mega Funds and the Influx of "Big Money"
The largest investment players are triumphantly returning to the venture arena, signaling a renewed appetite for risk. The Japanese conglomerate SoftBank has announced a new Vision Fund III (~$40 billion) to invest in cutting-edge technologies (AI and robotics), while simultaneously making an all-in bet on OpenAI, investing over $20 billion in the company. Sovereign funds from Middle Eastern countries have also ramped up activity, pouring billions into technology projects and launching government mega-projects aimed at developing the startup sector, thus creating their own tech hubs in the region. New venture funds are emerging globally as well. US venture funds have accumulated unprecedented reserves of “dry powder”—hundreds of billions of dollars in unallocated capital ready for deployment. The influx of "big money" fills the ecosystem with liquidity, providing resources for new rounds and supporting the growth 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 sector regarding the ongoing capital influx.
Record Rounds and New “Unicorns”: The Investment Boom in AI
The artificial intelligence sector remains the primary driver of the venture upturn of 2025, setting new records in 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 around $10 billion in investments, while OpenAI secured $8.3 billion at a valuation of approximately $300 billion. Both rounds were heavily oversubscribed, highlighting the excitement surrounding leading AI firms. Moreover, venture capital is not only flowing into AI applications but also into the infrastructure supporting them: one AI data storage startup is nearing the closure of a multi-billion dollar round at an extremely high valuation, as investors are willing to finance even the "shovels and pickaxes" for the entire AI ecosystem. This investment boom is giving rise to a wave of new “unicorns,” although experts warn of the potential overheating of this segment.
The IPO Market is Reviving: The “Window of Opportunity” for Offerings Remains Open
The global IPO market has confidently revived after a prolonged lull and continues to gain momentum. In Asia, Hong Kong has initiated a new wave of offerings: in recent weeks, several large tech companies have gone public, collectively raising multi-billion dollar amounts, confirming investors' readiness in the region to actively participate in IPOs once again. The situation is also improving in the US and Europe: American fintech unicorn Chime recently made its debut on the exchange, and its shares surged 30% on the first day of trading. Following it, other well-known startups are preparing for market entry, keeping the window for new IPOs open longer than many anticipated.
The resurrection of IPO activity encompasses a wide range of companies and is crucial for the venture ecosystem. Successful public exits allow venture funds to realize profitable exits and direct released capital into new projects. Despite caution from investors, the prolonged window encourages an increasing number of startups to consider going public.
Crypto Startups Are Experiencing a Renaissance
Following a prolonged downturn, the cryptocurrency market is set on an upward trajectory in 2025, reigniting venture investors' interest in blockchain projects. Capital is once again flowing into the crypto industry—from infrastructure solutions and cryptocurrency exchanges to DeFi platforms and Web3 startups. Major specialized funds are resuming activity in this segment, and new crypto startups are attracting significant funding rounds amid rising digital asset valuations.
Defense and Aerospace Technologies Attracting Capital
The geopolitical situation and rising defense budgets are fueling the influx of investment into military and aerospace technologies. Startups innovating for the defense sector—from drones and cybersecurity systems to AI for the military—are receiving support from both governmental and large investors. There is also substantial funding for commercial space projects: the development of satellite constellations, services in orbit, and new rocket technologies are being prioritized. Moreover, dual-use robotics (for military and civilian purposes) is attracting heightened investor interest, reflecting the strategic importance of automation.
Diversification of Investments: Fintech, Climate, and Biotech on the Rise
In 2025, venture investments are being distributed across an increasingly wide range of sectors, rather than being concentrated solely on artificial intelligence. Following last year’s downturn, there has been a noticeable revival in fintech: large funding rounds are happening not only in the US but also in Europe and emerging markets, supporting the growth of promising financial projects. Concurrently, investors are showing increased interest in climate technologies, green energy, and agrotech—these sectors are receiving record funding amidst the global shift toward sustainable development.
Activity is also recovering in biotech: new drugs and medical platforms are once again attracting capital as the sector emerges from a period of declining valuations. This broadening of sector focus is making the startup ecosystem more resilient, reducing the venture market's dependence on any single dominant trend.
Consolidation and M&A Deals: The Scaling of Players
High company valuations and fierce competition for markets are pushing the startup ecosystem toward consolidation. Major mergers and acquisitions are once again taking center stage, reshaping the industry's landscape. For example, Google has agreed to acquire Israeli cybersecurity startup Wiz for $32 billion. Such mega deals demonstrate that even industry leaders are willing to spend tens of billions to maintain their edge in the technology race.
Overall, current activity in mergers and acquisitions reflects the maturation of the industry. Mature startups are merging with one another or becoming targets for acquisition by corporations, while venture funds are finally gaining the opportunity for much-anticipated profitable exits. Consolidation enhances the efficiency of the ecosystem, enabling companies to pool resources for accelerated growth and expansion into global markets.
Global Expansion of Venture Capital
The venture boom of 2025 is characterized by increasingly broad geography. Besides traditional centers—the US, Western Europe, and China—there is a significant influx of capital in the Middle East, South Asia, Africa, and Latin America. The Gulf region, for instance, is rapidly transforming into a new tech hub thanks to multi-billion dollar investments from Saudi Arabia and the UAE into startups. India and Southeast Asia are setting records in venture financing, while countries in Africa and Latin America are nurturing their own “unicorns” and growing local ecosystems. Investors are increasingly seeking prospects worldwide, contributing to the formation of a truly global startup market.
Russia and the CIS: Local Focus Amidst Global Trends
Despite sanctions and other restrictions, there is a noticeable revival of startup activity in Russia and neighboring countries. New venture funds with volumes of up to 10-12 billion rubles are emerging. Local startups are once again attracting capital and even contemplating going public: for example, a regional food tech startup secured investment at a multi-billion valuation and is preparing for an IPO—a telling example of the seriousness of local initiatives.
Furthermore, foreign investors are again permitted to invest in Russian projects, gradually restoring interest from overseas capital. Although the volume of venture investments in the region remains modest, it is steadily growing.
