Current Startup and Venture Investment News for Monday, November 17, 2025: The Return of Mega Funds, Record AI Rounds, IPO Market Recovery, M&A Wave, Crypto Startup Resurgence, and New Unicorns. A Detailed Overview for Venture Investors and Funds.
As of mid-November 2025, the global venture market is confidently continuing its recovery after the downturn of recent years. According to industry analytics, total venture investments reached approximately $97 billion in the third quarter of 2025—nearly 40% higher than the previous year, marking the best quarterly figure since 2021. The "venture winter" of 2022-2023 is behind us, and the inflow of private capital into technology startups is noticeably accelerating. Major funding rounds and the launch of new mega funds signal a return of investor appetite for risk, albeit still exercised selectively and cautiously.
Venture activity is rising across all regions. The U.S. continues to lead (with particularly strong funding for AI projects), while investment volumes in the Middle East roughly doubled over the year thanks to support from sovereign wealth funds. Europe is witnessing an upswing, with Germany surpassing the UK in venture capital attraction for the first time. In Asia, record capital flows are being driven by India and Southeast Asia amidst a relative downturn in China. New tech hubs are forming in Africa and Latin America, while the startup scenes in Russia and the CIS are also striving to keep pace despite external constraints. Overall, the global market is gaining strength, although investors remain selective—primarily focusing on the most promising and resilient projects.
- The Return of Mega Funds and Major Investors. Leading venture players are raising record capital and are once again actively investing in startups, saturating the market with capital and rekindling risk appetite.
- Record AI Rounds and New Unicorns. Unprecedented mega rounds of funding in the AI sector are driving startup valuations to new heights and sparking a wave of new "unicorns".
- Revival of the IPO Market. Successful public listings of technology companies and new listing plans confirm that the long-awaited "window" for exits has reopened.
- Sector Diversification. Venture capital is flowing not only into AI but also into fintech, green technologies, biotech, defense developments, and other sectors—the investment focus is expanding.
- Wave of Consolidation and M&A. Major mergers and acquisitions are reshaping the industry landscape, creating new opportunities for profitable exits and accelerated company growth.
- Renewed Interest in Crypto Startups. After a prolonged crypto winter, blockchain projects are once again receiving significant funding and attention from funds and corporations.
- Local Focus. New funds and initiatives are emerging in Russia and the CIS to develop local startup ecosystems, attracting investor interest despite restrictions.
The Return of Mega Funds: Big Money Back in the Market
The largest investment funds and institutional players are confidently returning to the venture arena, signaling a renewed appetite for risk. Following a downturn in venture fundraising during 2022-2024, leading firms are resuming capital raising and launching mega funds, demonstrating confidence in the market's potential. For example, the Japanese conglomerate SoftBank announced the launch of its new Vision Fund III, totaling around $40 billion. In the U.S., Andreessen Horowitz is forming a record-sized fund (~$20 billion) focusing on late-stage AI startups.
Sovereign funds in the Middle East are also becoming active, pouring billions into high-tech projects and creating regional tech hubs. At the same time, dozens of new venture funds are emerging across all regions, attracting significant institutional capital for investments in technology companies. The return of such "mega structures" means more funding opportunities for startups but also intensifies competition among investors for the best projects.
Record Investments in AI: A New Wave of Unicorns
The artificial intelligence sector remains the primary driver of the current venture upturn, showing record levels of funding. It is estimated that about half of all venture investments in 2025 are directed toward AI startups, and global investments in AI could exceed $200 billion by the year's end—an unprecedented level for the industry. This fervor is tied to the promise that AI technologies will significantly enhance efficiency across various fields and open up multi-trillion-dollar markets—from industrial automation to personal digital assistants. Despite warnings about potential market overheating, funds continue to ramp up investments, fearing they will miss out on the next technological revolution.
The massive influx of capital is accompanied by a concentration of resources among industry leaders: the lion's share of investments is directed toward a select few companies leading the AI race. For example, the French startup Mistral AI raised approximately $2 billion, while OpenAI secured $13 billion in a single round—both of these mega rounds substantially increased company valuations. Such deals inflate startup costs but simultaneously concentrate resources on the most promising directions, creating a foundation for future breakthroughs.
In recent weeks, several companies have announced significant funding rounds, reaffirming the return of "big checks" to the market. Notable examples include:
- Synthesia (UK) – raised $200 million at a valuation of ~$4 billion to develop its AI video generation platform (the round was led by GV Fund from Alphabet).
- Armis (USA) – secured $435 million in a pre-IPO round at a valuation of $6.1 billion to expand its IoT cybersecurity platform (investor leaders include Goldman Sachs and CapitalG).
- Cursor (USA) – raised approximately $2.3 billion in another funding round, elevating its valuation to ~$29 billion just five months after the previous round, underscoring the unprecedented excitement around AI tools for developers.
Revival of the IPO Market and Exit Prospects
Amid rising valuations and capital influx, technology companies are once again actively preparing to go public. Following nearly two years of dormancy, there has been a notable spike in IPOs as a primary exit mechanism for venture funds. Several successful public offerings in 2025 confirmed the opening of the "window" of opportunities: for instance, American fintech unicorn Circle went public with a valuation of about $7 billion—this debut restored investor confidence in the market's appetite for new technology issuers. Following this, a number of major private companies are eager to seize on the favorable situation. According to insider reports, ChatGPT creator OpenAI is considering its own IPO in 2026, with a potential valuation of up to $1 trillion, which would represent a historic case for the industry. Also preparing for a listing in 2026 is the blockchain company ConsenSys (developer of the MetaMask wallet).
Improved conditions and gradual clarity in regulation (e.g., the adoption of specialized laws on stablecoins and the awaited approval of Bitcoin ETFs) give startups confidence: the public market has once again become a viable option for raising capital and providing exits for investors. The return of successful IPOs is extremely important for the venture ecosystem: profitable exits allow funds to reclaim investments and direct freed-up capital into new projects, closing the investment cycle.
Sector Diversification: Broader Investment Horizon
In 2025, venture investments are encompassing a much broader range of industries and are no longer limited to artificial intelligence alone. Following last year's downturn, fintech is again reviving: large funding rounds are occurring not only in the U.S. but also in Europe and emerging markets, fueling the growth of new digital financial services. At the same time, driven by sustainability trends, investors are actively funding climate and "green" projects. Aerospace and defense technologies are gaining traction—funds are increasingly investing in aerospace startups, unmanned systems, and defense-tech.
Thus, the investment focus is significantly expanding: alongside AI innovations, venture capital is now flowing into fintech, eco-startups, biotech/med-tech, security projects and other areas. Broad diversification makes the entire startup ecosystem more resilient and reduces the risk of overheating in specific segments. Notably, the healthcare sector ranked third worldwide in venture capital investment volume by the end of the third quarter (approximately $15-16 billion). For instance, American med-tech startup Forward Health raised $225 million in a Series D round (with investors including SoftBank and Founders Fund), boosting its valuation above $1 billion and attaining unicorn status. The appetite for defense technologies is also returning (a standout example is Anduril Industries, USA, which received $2.5 billion, doubling its valuation to ~$30 billion), while a partial restoration of trust in the cryptocurrency industry has allowed some blockchain projects to once again attract funding.
Wave of Consolidation and M&A Deals
Heightened startup valuations and intense competition in the market have led to a new wave of mergers and acquisitions. Tech giants are reviving activity, eager to acquire key technologies and talent: for example, Google has agreed to acquire the Israeli cybersecurity startup Wiz for approximately $32 billion—a record sum for the Israeli tech sector. This large-scale M&A activity signals that the startup ecosystem has matured: mature companies are either merging with one another or becoming targets for acquisitions by corporations, while venture investors finally have a chance for long-anticipated profitable exits.
Consolidation is also impacting the venture sector itself. In October, major investment bank Goldman Sachs announced the acquisition of the venture firm Industry Ventures for approximately $1 billion—one of the largest deals of the year within the VC market, reflecting growing interest from traditional financial institutions in technology assets. Additionally, signs of consolidation are also emerging in the crypto industry: according to sources, payments giant Mastercard is close to acquiring a blockchain infrastructure startup (a provider of stablecoin technology) for up to $2 billion. These moves affirm the desire of major players to establish a foothold in promising niches and accelerate the market's shift in favor of larger and more resilient companies.
Renewed Interest in Crypto Startups
After a prolonged downturn during the "crypto winter," the market for blockchain startups is significantly reviving in the second half of 2025. In the autumn, the sector attracted the highest levels of financing in the last several years, largely due to clearer rules of the game: regulators are introducing understandable norms (e.g., laws on stablecoins, prospects for approval of Bitcoin ETFs), and major financial corporations are returning to the sphere of digital assets. As a result, the influx of venture capital into the crypto segment has sharply increased.
Notably, one of the largest venture deals of the year, outside the AI sector, involved a crypto startup: the American project Polymarket raised approximately $2 billion (at a valuation of around $9 billion) to develop a decentralized prediction market platform. Infrastructure solutions for digital currencies are also beginning to receive support—recently, the startup Hercle (USA), which is developing a platform for issuing stablecoins, secured about $60 million in funding. Overall, crypto startups, cleansed of speculative ballast, are gradually restoring trust and once again attracting the attention of venture funds and corporations. The involvement of traditional financial players and clearer regulatory frameworks are laying the groundwork for further investment growth in this segment.
Local Market: Russia and the CIS
Despite external constraints, the startup ecosystem in Russia and neighboring countries is also attempting to develop amid the global upturn. Over the past year, several new venture funds have emerged in the region (with a total capital in the tens of billions of rubles), while state institutions and large corporations have launched technology support programs—new accelerators, specialized funds, and grant competitions for innovative projects have been established. Venture investment volumes in Russia and the CIS remain comparatively modest by global standards, and serious barriers persist (high rates, sanctions, etc.). Nevertheless, the most promising local startups continue to attract funding and develop, focusing on local market niches.
The formation of a local venture infrastructure is gradually creating a foundation for the future—by the time external conditions improve and global investors can actively return to the region. Notably, in 2025, restrictions were partially lifted for foreign investors wishing to invest in local projects, gradually returning interest from foreign capital. Such local initiatives, despite geopolitical difficulties, integrate the Russian and neighboring markets into global trends and prepare them for participation in the new venture upturn.
Conclusion: Cautious Optimism
A moderately optimistic mood prevails in the venture capital industry. On the one hand, the rapid growth of startup valuations—especially in the AI segment—draws parallels with the dot-com boom and serves as a reminder of the risks of market overheating. On the other hand, the current investment frenzy directs enormous resources and talents toward the development of new technologies, laying the groundwork for future innovative breakthroughs.
By the end of 2025, it became evident that the global startup market has revived: record levels of funding are being recorded, significant IPOs are on the horizon, and major funds have accumulated unprecedented pools of capital for investments. At the same time, investors are acting more discerningly, primarily investing in the most promising projects with sustainable business models. The key question for the future is whether the high expectations surrounding the AI boom will be justified and whether other sectors will catch up in attractiveness for capital. In the meantime, appetites for innovation remain heightened, and market participants look ahead with restrained enthusiasm, hoping for continued balanced growth of the venture ecosystem.
