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. A Review of Global Trends for Venture Investors and Funds.
By the end of 2025, the global venture capital market shows a sustainable recovery after a prolonged downturn. Investors around the world are once again actively funding tech startups: multimillion-dollar deals are being struck, and IPO plans for promising companies are back in focus. Major venture funds and corporations are returning with record investment programs, while governments in various countries are enhancing support for innovative businesses. The influx of private capital is providing young companies with liquidity for growth and scaling.
Venture activity spans all regions of the world. The United States remains the leader primarily due to colossal investments in artificial intelligence. The volume of investments in startups in the Middle East has doubled compared to last year. In Europe, there is a redistribution of power: for instance, Germany has overtaken the United Kingdom in terms of venture deals, strengthening the position of continental hubs. India, Southeast Asia, and other rapidly developing markets are attracting record capital amidst relatively selective investor behavior in China (due to regulatory risks). The startup ecosystems in Russia and the CIS countries are also striving to catch up despite external constraints. A new global venture upswing is evident: investors have returned to the market, though they continue to approach 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 flooding the market with liquidity.
- Record funding rounds and a new wave of "unicorns" in AI. Unprecedented investments are raising valuations of startups to unseen heights, particularly in the artificial intelligence segment.
- Revitalization of the IPO market. Successful IPOs of tech "unicorns" and new filings 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, enhancing the influx of capital into the crypto industry.
- Defense and aerospace technologies attract capital. Geopolitical factors stimulate investment in military technologies, space projects, and robotics.
- Diversification of industry focus: fintech, climate projects, and biotech. Venture capital is being directed not only to AI but also to fintech, climate initiatives, and biotechnology, expanding market horizons.
- A wave of consolidation and M&A deals. High valuations of startups and fierce competition for new markets are provoking a wave of consolidation: large M&A deals are opening additional opportunities for exits and scaling.
- Global expansion of venture capital. The investment boom extends beyond traditional centers—beyond 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 tech hubs.
- Local focus: Russia and the CIS. Despite sanctions, new funds are emerging in the region to develop 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 new increase in risk appetite. The Japanese conglomerate SoftBank has announced a new Vision Fund III (~$40 billion) for investments in advanced technologies (AI and robotics) and is simultaneously making an "all-in" bet on OpenAI, investing over $20 billion in the company. Sovereign funds from Middle Eastern states are also becoming more active; they are pouring billions into tech projects and launching state mega-projects to develop the startup sector, creating their own tech hubs in the region. At the same time, new venture funds are appearing worldwide. Venture funds in the US have amassed unprecedented reserves of "dry powder"—hundreds of billions of dollars in uninvested capital ready for deployment. The influx of "big money" fills the ecosystem with liquidity, providing resources for new rounds and supporting the growth of valuations for 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 industry regarding continued capital influx.
Record Rounds and New "Unicorns": The Investment Boom in AI
The artificial intelligence sector remains the main driver of the venture upswing in 2025, setting new records in funding volume. Investors are eager to invest in AI leaders, directing colossal sums into the most promising companies. For example, Elon Musk's startup xAI raised around $10 billion in funding, and OpenAI received $8.3 billion at an estimated valuation of approximately $300 billion. Both rounds were oversubscribed multiple times, highlighting the frenzy surrounding leading AI companies. Moreover, venture capital is flowing not only into AI applications themselves but also into the infrastructure for them: one data storage startup for AI is close to closing a multi-billion round at a very high valuation (investors are even willing to fund "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 dangers of overheating in this segment.
The IPO Market Comes Alive: The "Window of Opportunity" for Listings Remains Open
The global IPO market has confidently revived after a prolonged lull and continues to gather momentum. In Asia, Hong Kong ignited a new wave of listings: in recent weeks, several major tech companies have gone public, collectively raising multi-billion sums, confirming investor readiness in the region to actively participate in IPOs once again. The situation is also improving in the US and Europe: the American fintech "unicorn" Chime recently debuted on the market, with its shares soaring by 30% on the first trading day. Following suit, other well-known startups are preparing for market entry, so the "window" for new IPOs remains open longer than many expected.
The resurgence of IPO activity encompasses a wide array of companies and is crucial for the venture ecosystem. Successful public exits allow venture funds to realize profitable exits and redirect liberated capital into new projects. Despite investor caution, the prolonged "window" encourages more startups to consider going public.
Crypto Startups Experience a Renaissance
After a prolonged slump, the cryptocurrency market began to rise again in 2025, rekindling venture investors' interest in blockchain projects. Capital is once again flowing into the crypto industry—from infrastructure solutions and exchanges to DeFi platforms and Web3 startups. Major specialized funds are resuming their activity in this segment, and new crypto startups are attracting significant funding rounds amidst rising digital asset valuations.
Defense and Aerospace Technologies Attract Capital
The geopolitical landscape and rising defense budgets stimulate the influx of investments in military and aerospace technologies. Startups creating innovations for the defense sector—ranging from drones and cybersecurity systems to artificial intelligence for the military—are receiving support from both the state and large investors. Commercial space projects are also receiving active funding: the development of satellite constellations, services in orbit, and new rocket technologies. Moreover, dual-use robotics (for military and civilian purposes) is attracting increased capital interest, reflecting the strategic importance of automation.
Diversification of Investments: Fintech, Climate, and Biotech on the Rise
In 2025, venture investments are being spread across an increasingly broad range of sectors, rather than being concentrated solely on artificial intelligence. Following last year's decline, there is noticeable revival in fintech: large funding rounds are occurring not only in the US but also in Europe and emerging markets, supporting the growth of promising financial projects. Simultaneously, investors are showing heightened interest in climate technologies, "green" energy, and agri-tech—these areas are receiving record financing on the wave of a global trend towards sustainable development.
Activity in biotech is also recovering: new drugs and medical platforms are once again attracting capital as the industry emerges from a period of declining valuations. This expansion of sector focus makes the startup ecosystem more resilient, reducing the venture market's dependence on any single dominant trend.
Consolidation and M&A Deals: Consolidation of Players
High valuations of companies and fierce market competition are pushing the startup ecosystem toward consolidation. Major mergers and acquisitions are once again coming to the forefront, reshaping the industry dynamics. For instance, Google has agreed to acquire Israeli cybersecurity startup Wiz for $32 billion. Such mega deals illustrate that even industry leaders are willing to spend tens of billions to keep pace in the technology race.
Overall, the current activity in acquisitions and major venture deals reflects the industry's maturation. Mature startups are merging with one another or becoming targets for acquisition by corporations, while venture funds are finally getting opportunities for long-awaited profitable exits. Consolidation enhances the efficiency of the ecosystem, allowing companies to combine resources for accelerated growth and global reach.
Global Expansion of Venture Capital
The venture boom of 2025 is characterized by an increasingly broad geographical scope. Beyond traditional centers—the US, Western Europe, and China—an influx of capital is being observed 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 investments from Saudi Arabia and the UAE in startups. India and Southeast Asia are setting records in venture financing, while countries in Africa and Latin America are birthing their own "unicorns" and developing 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 resurgence of startup activity in Russia and neighboring countries. New venture funds with volumes of 10–12 billion rubles are emerging. Local startups are once again attracting capital and even considering going public: for instance, a regional food tech startup received investment at a multi-billion valuation and is preparing for an IPO—an indicative example of the seriousness of local initiatives.
Furthermore, foreign investors are once 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 increasing.
