Latest Startup and Venture Investment News for Monday, December 29, 2025: Record AI Rounds, Venture Fund Activity, Key Deals, and Global Investment Trends for Venture Investors.
By the end of 2025, the venture market shows signs of recovery after an extended decline. Major funds and corporations are announcing large-scale investment programs, while governments are launching new incentives for tech startups. Investors worldwide are once again actively funding high-tech businesses. The United States remains a leader due to a boom in the artificial intelligence sector, while record inflows from sovereign funds are seen in the Middle East. In Europe, the focus is shifting to defense and medical technologies. India and Southeast Asian countries are attracting record amounts of capital, despite regulatory risks in China. The Chinese authorities, for their part, are supporting "hard-tech": three national funds of 50 billion yuan each have been launched for investments in semiconductors, quantum technologies, biomedicine, and other innovative sectors. Thus, a new global venture boom is taking shape with a wide geographic scope.
Major Rounds of the Week
- Swedish startup Lovable — $330 million (Series B, valuation $6.6 billion). The company is developing a software generation platform based on text descriptions, reaching $100 million in annual revenue in just 8 months and $200 million in a year.
- American fintech Erebor Bank — $350 million (Series D, valuation ~$4.35 billion). The company provides banking services for crypto and AI firms.
- ZeroAvia (USA/UK) — $150 million (Series D) for the development of hydrogen engines for aviation focused on zero emissions.
- SanegeneBio (USA) — $110 million (Series B) for the development of RNAi therapies and new medications.
- Israeli firm Cyera — $400 million at a valuation of $9 billion. The startup is creating an AI cybersecurity platform to protect corporate data.
- Latin fintech Plata — $500 million (round led by Nomura, valuation $3.1 billion). Founded by former Tinkoff Bank executives, the company issues banking cards (limit up to $200,000) with cashback and provides loans to 2.5 million customers in Mexico.
- Clio (Canada) — $500 million (Series I, valuation $5 billion). The corporate travel and expense service closed this round while expanding global sales after the recent IPO of competitor Navan.
Such deals reflect a trend toward capital concentration: according to Crunchbase, over 70% of all investments in American startups in 2025 were directed towards rounds exceeding $100 million (including a record $40 billion in OpenAI). Similar patterns are observed globally: more than 60% of global VC capital is flowing into mega-rounds. The influx of private capital is being driven by major funds (SoftBank, Mubadala, venture programs in the USA) and national institutes around the world.
AI and the Investment Boom
The artificial intelligence sector continues to be the driving force behind venture growth. Analysts estimate that in 2025, investors allocated over $200 billion to AI projects—almost half of all global venture capital investments. This is reflected in numerous rounds and increasing valuations: for instance, SoftBank and Nvidia are negotiating a $1 billion investment in Israeli startup Skild AI (valuation approx. $14 billion), a developer of universal models for robots.
Additionally, several notable projects have secured significant investments:
- Flex (USA/India) — $60 million (Series B). This fintech startup develops AI tools for managing finances of mid-sized businesses, consolidating the entire corporate finance stack onto a single platform.
- GC AI (USA) — $60 million (Series C, valuation approx. $555 million). This LegalTech company employs AI for lawyers and office staff, closing this expanded round during the industry’s peak times.
- Google & Accel AI India (India) — investments up to $20 million (at $2 million in 10 startups). A new program by Google in collaboration with Accel aims at early AI projects in creativity, entertainment, and automation.
Leading corporations are also expanding the AI ecosystem: Nvidia is licensing the technologies of startup Groq and is hiring its leadership instead of acquiring the entire business. Concurrently, OpenAI and major IT companies are actively investing in data center infrastructure (Project Stargate, investments from Meta/Google/Oracle). These developments confirm that investments are flowing into the entire tech stack—from foundational models to accompanying services and equipment.
Cybersecurity and Major Deals
The cybersecurity sector continues to see an arms race and consolidation among major players. For instance, Google has announced the acquisition of Israeli startup Wiz for $32 billion, while Palo Alto Networks is acquiring CyberArk for $26 billion, both setting 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 infrastructure), more than double its recent valuation. Meanwhile, venture funding is ramping up: Ukrainian-Israeli startup Cyera raised $400 million from Blackstone at its $9 billion valuation.
Overall, defense and cybersecurity technologies remain the focus for investors: the increased demand for cyber protection is supported by new funds (such as €125 million from Keen VC for European defense startups) and active M&A deals that are paving the way for new capitalization growth points.
Fintech, Cryptocurrencies, and New Banks
The financial technology sector is experiencing an influx of capital. Mexican fintech Plata, founded by former Tinkoff Bank executives, received a valuation of $3.1 billion after its recent $500 million round, becoming one of the market leaders in Latin America. The American "crypto-bank" Erebor Bank secured $350 million, expanding lending services for blockchain companies. Niche solutions are also receiving support: for example, New York-based startup FINNY raised $17 million for its AI platform for financial advisors and CRM.
Following a deep downturn, 2025 has become a time for renewed interest in crypto startups: as the cryptocurrency market stabilizes, blockchain projects are once again attracting venture investments and expecting to secure long-term funding. This aligns with the global trend: as cryptocurrency services integrate into traditional finance, VC funds are allocating resources to DeFi, stablecoins, and related infrastructural solutions.
Medicine, Biotechnology, and Eco-Technologies
Innovations in medicine and the "green" economy have also captured venture investors' attention. Boston-based biotech project SanegeneBio received $110 million for the development of new RNAi therapies. New York startup Neurable (neurointerfaces using EEG) closed a $35 million Series A round for the release of wearable devices to monitor brain status. American platform Truemed (with Andreessen Horowitz among its investors) raised $34 million for a service utilizing HSA accounts for wellness purchases. Additionally, venture funds are financing AI safety projects: Red Queen Bio ($15 million from OpenAI) is developing AI tools for detecting biological threats.
In the field of ecology and transportation, a key event was the continued financing of "green" technologies. Startup ZeroAvia received $150 million for the development of hydrogen engines for airplanes, reinforcing the trend in investments towards alternative energy and clean transportation. Thus, diversification of investments is extending beyond AI—climate and medical innovations are also coming into focus.
Government Support and Geography of Investments
Alongside private investments, government initiatives to support startups are also on the rise. China announced the establishment of three venture funds (each over 50 billion yuan) for early-stage startups in "hard tech" (chips, quantum technologies, biomedicine, etc.). In India, Google and Accel are launching a new AI fund, planning to invest $2 million in ten promising local startups. Europe is seeing specialization as the Dutch fund Keen VC raises €125 million for defense and aerospace projects. Sovereign funds from the UAE, Saudi Arabia, and Singapore have increased their presence in fintech and "green" technologies in 2025.
Regional ecosystems continue to grow: Latin America and Africa have seen their first unicorns (Fintech, e-commerce, etc.), highlighting the global nature of venture growth. Russia and the CIS, despite sanctions, are witnessing a resurgence in startup activity: new local funds and accelerators are being launched aimed at integrating projects into the global trend.
Corporate Deals and Outlook
Activity in the M&A and IPO markets is heating up the overall picture. Major tech companies are continuing to build their portfolios: Nvidia has licensed the architecture of startup Groq and hired its founder, rather than acquiring the entire business. Many startups are preparing for an IPO; for instance, Navan (formerly TripActions) and eToro have successfully completed their IPOs, showcasing promising exit prospects to investors. Corporations are concurrently amassing funds for acquisitions—against the backdrop of elevated valuations and reduced lending rates, a new wave of deals is anticipated in 2026.
As the New Year approaches, the startup market greets a moderately optimistic sentiment: by the end of 2025, investments and deal ratings are close to record highs, with funds and companies preparing 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 strengthened belief in the long-term potential of technological innovations and expectations for sustained investment activity in 2026.
