Startup and Venture Investment News — Wednesday, December 24, 2025: Dominance of AI, Return of Mega Funds, and IPO Revival
By the end of 2025, the global venture capital market is showing confident growth after several years of decline. Investments in startups have significantly increased, and major players and institutional investors are once again becoming active. Governments across various countries are also launching initiatives to support innovation. The overall trend indicates a new cycle of venture growth, although investors are still approaching deals selectively and cautiously.
Venture activity is increasing across all regions. The United States maintains its leadership (especially in the artificial intelligence (AI) segment), The Middle East is exhibiting record growth in investments, while India, Southeast Asia, and the Persian Gulf countries are attracting significant capital amid a relative downturn in China. Russia and the CIS, despite external constraints, are striving to develop their own startup ecosystems. Africa and Latin America are also seeing an influx of investment and the emergence of new technology firms. The return of large capital is of a global nature, though it is unevenly distributed across countries and sectors.
Below are the key events and trends shaping the current agenda of the venture market as of December 24, 2025:
- AI Dominates Venture Investments. For the first time, startups in the field of artificial intelligence account for nearly half of all investments.
- Return of Mega Funds and Large Investors. Leading venture funds have increased their volumes, and new investment “mega funds” have been launched, ensuring a capital influx into the market.
- Record Mega Funding Rounds and New Unicorns. Unprecedentedly large rounds are raising startup valuations to new heights, creating dozens of new “unicorn” companies.
- Revival of the IPO Market. Successful public offerings by technology companies and new applications confirm that the long-awaited “window” for exits remains open.
- Diversification of Sectors. Venture capital is being directed not only into AI, but also into fintech, climate technology, biotech, defense projects, and cryptocurrency initiatives.
- Consolidation and M&A Deals. Major mergers, acquisitions, and strategic investments are reshaping the market, creating opportunities for exits and scaling.
- Local Focus: Russia and CIS. New funds and support programs are emerging in the region, aimed at stimulating the growth of local startups even amid constraints.
AI Captures Record Share of Venture Funding
The artificial intelligence sector has become the main driver of the venture market in 2025. By the end of the year, AI startups account for approximately 50% of the global venture capital investment volume (over $200 billion overall). In comparison, the share of AI was about 34% the previous year. Investments in the AI sector have increased by approximately 75% compared to 2024, marking an unprecedented leap.
Enormous amounts are being directed to both developers of generative AI models and companies creating infrastructure and applications based on AI. The two most valuable private startups in the world are now tied to artificial intelligence: OpenAI is valued at about $500 billion (following another funding round of tens of billions of dollars), while competitor Anthropic has reached an estimated valuation of around $180 billion. Together, these two companies have attracted roughly 14% of all global venture investments in the year. The US completely dominates this segment: approximately 80% of investments in AI startups went to American companies, with Silicon Valley alone attracting over $120 billion.
The AI boom is radically transforming the venture industry. Major tech corporations and funds are actively participating in giant funding rounds: for instance, Meta invested $14.3 billion in Scale AI, and SoftBank led a record funding round for OpenAI (amounting to about $40 billion). As a result, the largest players are accumulating a significant portion of capital while stimulating the development of the entire sector. The question for the future is whether AI leaders will continue to attract tens of billions in investments annually or will seek alternatives (e.g., partnerships for access to computational resources).
Return of Mega Funds: Big Money Back in the Market
In 2025, the largest investment players triumphantly returned to the venture arena. After a pause in recent years, leading funds and investors are once again ready to invest significant sums in startups. The Japanese conglomerate SoftBank launched its third Vision Fund with a target size of about $40 billion, focused on advanced technologies (AI, robotics, etc.). Sovereign funds in the Middle East have also ramped up activity: billions of dollars are being invested by state investors in the region into technology projects, and state mega-projects and tech hubs are being established to support the startup sector.
Alongside this, new venture funds of all sizes continue to be established globally. Just in December, the total amount of newly announced funds exceeded $9 billion (at least 16 new venture and private funds were launched that month). Large global funds have accumulated record amounts of free capital (“dry powder”): US venture investors alone hold hundreds of billions of dollars in uninvested funds, ready for deployment. This influx of “big money” fills the ecosystem with liquidity, provides resources for new rounds of financing, and supports the growth of valuations for promising companies.
In addition to private funds, governmental initiatives are also beginning to play a significant role worldwide. For example, a fund called Deutschlandfonds worth €30 billion has been launched in Europe, aimed at attracting up to €130 billion in private investments into technology startups, energy transformation, and German industry. Governments recognize the importance of the venture market for economic competitiveness and are ready to temporarily act as a catalyst for investments. The return of major sources of capital — both private and public — instills confidence in the industry regarding the continued growth of venture investments.
Record Rounds and New Unicorns: Investment Boom
The venture market in 2025 is characterized not only by overall growth but also by a concentration of capital in the largest deals. Mega rounds (hundreds of millions and billions of dollars in one round) have become commonplace, especially in the AI sector. The lion's share of all funds has concentrated in a limited number of companies: estimates suggest several dozen startups secured about a third of the total funding volume for the year. Late-stage rounds (Series C and beyond) grew by more than 60% compared to the previous year, while the number of early-stage deals is declining. A “two-speed” market is forming: the largest “unicorns” easily attract billion-dollar checks, while young teams find it more challenging to close rounds — investors are imposing higher demands on products and revenue.
Nevertheless, the investment boom has generated a new wave of “unicorn” companies. In 2025, the status of unicorn (valuation exceeding $1 billion) was conferred on dozens of startups globally — this is the first widespread emergence of highly valued companies since the boom of 2021. New unicorns are particularly thriving in the AI and fintech sectors but are also found in other industries. Although experts warn of the risks of overheating, many funds are eager not to miss opportunities to invest in potential market leaders at relatively early stages of their growth.
Examples of large venture rounds in 2025 include:
- OpenAI — attracted around $40 billion in investments over the year (record round led by SoftBank) and reached an estimated valuation of about $500 billion.
- Anthropic — secured multi-billion funding from a consortium of investors (including major tech giants), raising its valuation to around $180 billion.
- Scale AI — a data startup for AI that received $14.3 billion from Meta and partners, one of the largest rounds of the year.
- Cerebras Systems — a developer of hardware AI accelerators secured $1.1 billion in Series G round (valuation ~$8 billion) with participation from funds like Fidelity and others.
- Vercel — a platform for AI-oriented web development closed $300 million (Series F round) with a valuation of $9.3 billion.
- Crystalys Therapeutics — a biopharmaceutical startup from the US raised $205 million in Series A round for developing new drugs (one of the largest rounds in biopharma for the year).
IPO Market Revitalization: Window for Exits is Open
After a long hiatus from 2020 to 2023, the global IPO window has finally opened. The year 2025 brought a series of successful public placements by venture companies, rekindling investor confidence in the stock market for technological newcomers. In Asia, the new wave of IPOs was triggered by Hong Kong: several major Chinese tech firms went public, collectively raising billions of dollars (for example, battery manufacturer CATL raised $5.2 billion). In the US and Europe, the situation also improved: American fintech unicorn Chime made a successful debut on the New York Stock Exchange (its shares rose 30% on the first day of trading), followed by others, including Swedish payment service Klarna. The total number of “unicorns” that went public in 2025 exceeds twenty, significantly higher than the zero figures of the previous two years.
Investors are once again ready to consider IPOs as a realistic exit scenario. Furthermore, even larger placements are on the agenda for 2026: the company SpaceX is publicly preparing for an IPO with a potential valuation of up to $1.5 trillion — this could become the largest tech IPO in history. Successful public exits are extremely important for the venture ecosystem: they allow funds to lock in profits and free up capital for new investments. Although the market remains selective (not all recent IPOs are trading above their offering price), the mere fact of an “opportunity window” has revitalized the later stages of the venture market. Many mature startups are accelerating their preparations for going public, hoping to take advantage of favorable conditions.
Diversification of Investments: Broader Sector, Broader Opportunities
The rapid growth of AI does not mean that all capital is flowing into just one sector. On the contrary, 2025 saw a revival of funding across many other sectors. Fintech is regaining investors' attention: major rounds occurred not only in Silicon Valley but also in the European market and emerging economies. Climate technologies are attracting increasingly more funds amidst the global trend of sustainable development; several funds targeting clean-tech and energy startups have emerged in Europe and the US (in particular, several large deals have occurred in the renewable energy infrastructure and electric vehicle sectors).
Funding for biotechnology continues as well: despite the risks, investors are backing promising biomedical projects (especially in genetics and pharmaceutical development — examples include multi-million rounds for companies like Crystalys Therapeutics and Star Therapeutics). Defense technologies and aerospace startups are also on the rise — geopolitical factors are driving demand for new developments in the fields of security, unmanned systems, and space services. Finally, after the previous years' waning interest, the blockchain startup and crypto-financial services segment is reviving: the rise in cryptocurrency prices in 2025 has redirected some venture funds' attention back to this area, with several blockchain projects able to attract rounds in the tens of millions of dollars.
Thus, the venture market at the end of 2025 has become more diverse. Investors are broadening their horizons in search of promising directions, recognizing that the next “big thing” could emerge not only in AI but at the intersection of other sectors — from fintech and health to energy and environmental protection.
Consolidation and M&A: Larger Players Emerging
The return of large money and high startup valuations has led to a new wave of consolidation in the market. Major companies and leading unicorns have activated mergers and acquisitions to strengthen their positions and gain access to technologies. For instance, OpenAI acquired the startup Statsig in 2025, expanding its toolset for developers. Corporations are “hunting” for promising teams again: for example, major corporate software developer Workday acquired the AI startup Sana (specializing in automating HR processes), and Google-backed firm Isomorphic Labs bought several small biotech projects to enhance its portfolio.
Concurrently, some conglomerates are optimizing their innovation divisions by spinning off non-core areas into standalone companies (spin-off). This opens up opportunities for venture deals: new startups are arising within large firms and receiving initial funding for independent development. The wave of M&A deals and corporate spinoffs is reshaping the industry landscape, consolidating key players and providing exit opportunities for investors via acquisitions. For venture funds, this means more exit options beyond IPOs.
Consolidation is especially noticeable in competitive areas: in fintech, mergers are taking place for customer bases; in the AI sector, for access to unique models or data; and in cybersecurity, for solutions integration. While acquisitions reduce the number of independent startups, they signify a maturation of the market: the most successful projects attract the attention of giants and become part of larger ecosystems. This is a natural path for many teams and a key indicator of the health of the venture market, where the strongest get the chance to scale through merger transactions.
Russia and CIS: Local Market Seeking Growth
Against the backdrop of global trends, the startup ecosystem of Russia and the CIS in 2025 is attempting to emerge from a prolonged downturn. Despite geopolitical constraints and a decrease in foreign capital, the second half of the year has seen a revival of local venture activity. New funds and investors focused on the domestic market are emerging. For example, the communications group “Mikhailov and Partners” announced the creation of the Rosventure fund for investments in technology projects, and the cybersecurity systems developer R-Vision launched a corporate venture fund worth 500 million rubles. Additionally, a number of targeted funds and accelerators have been formed with the support of government structures (including the “Sirius Innovations” fund in collaboration with the Russian Direct Investment Fund at 1 billion rubles) to finance promising Russian startups.
The overall volume of venture investments in Russia for the year remains modest compared to the market leaders, but there are signs of stabilization. Major domestic IT companies (such as Yandex and Sberbank) continue to invest in new directions, although a total of only about $30 million was directed to AI projects within the country in 2025. Nevertheless, the local venture market is active: deals are happening, and technologies are being developed for the domestic and neighboring markets. Among the notable deals of the year are investments by the KAMA FLOW fund (jointly with OSNOVA Capital) in projects focused on developing AI platforms:
- Platformeco — raised 100 million rubles from KAMA FLOW to develop a platform for integrating and managing APIs related to AI agents.
- Piklema Group — secured 1 billion rubles in investments from the joint fund of KAMA FLOW and OSNOVA Capital for scaling its technological solutions in the Russian market.
Although the scale of funding in the region is small, the emergence of new funds and deals inspires optimism. Local investors and corporations are taking on the role of driving innovation in the absence of significant foreign investments. Niche directions, from agritech to projects in import substitution, are developing. Russia and neighboring countries are striving not to miss the global trend toward technological entrepreneurship, preparing the groundwork for future growth when external conditions improve.
Conclusions: Cautious Optimism at the Threshold of 2026
The end of 2025 is marked by the recovery of the venture industry and the return of investor confidence. Major rounds and IPOs have demonstrated the market’s viability, while the emergence of new funds promises a continued influx of capital. Nevertheless, a certain caution remains: funds are closely selecting projects, avoiding excessive euphoria. The focus is on quality growth and the long-term sustainability of startups.
Venture investors are entering 2026 with tempered optimism. Financing rates are expected to remain high, especially in leading sectors like AI, while some correction in valuations may occur following rapid increases. A key factor for success will be startups’ ability to demonstrate real business development and technology monetization. Overall, the venture market is emerging from a downturn stronger and more mature: the accumulated “dry powder” is ready for deployment, and startups worldwide have the opportunity to turn received investments into groundbreaking products and services.
