Latest Startup and Venture Capital 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 is showing signs of recovery after a prolonged downturn. Major funds and corporations are announcing large-scale investment programs, while governments are launching new incentives for tech startups. Investors worldwide are actively financing high-tech businesses once again. The US remains a leader thanks to a boom in artificial intelligence, with sovereign funds making record investments in the Middle East and defense and medical technologies gaining traction in Europe. India and Southeast Asian countries are attracting record amounts of capital despite regulatory risks in China. Meanwhile, Chinese authorities support 'hard-tech,' having launched three national funds of 50 billion yuan each to invest in semiconductors, quantum technologies, biomedicine, and other innovative fields. This is leading to the formation of a new global venture boom with a wide geographic scope.
Major Rounds of the Week
- Swedish startup Lovable – $330 million (Series B, valuation $6.6 billion). The company develops a software generation platform based on text descriptions, achieving $100 million in annual revenue within just 8 months and $200 million within a year.
- American fintech Erebor Bank – $350 million (Series D, valuation ~$4.35 billion). Provides banking services to crypto and AI companies.
- ZeroAvia (USA/UK) – $150 million (Series D) for the development of hydrogen engines for aviation, targeting zero emissions.
- SanegeneBio (USA) – $110 million (Series B) for the development of RNAi therapies and new medications.
- Israeli Cyera – $400 million at a valuation of $9 billion. The startup creates an AI cybersecurity platform to protect corporate data.
- Latin fintech Plata – $500 million (round from Nomura, valuation $3.1 billion). Founded by former Tinkoff Bank executives, the company offers banking cards (limits up to $200,000) with cashback and provides loans to 2.5 million clients in Mexico.
- Clio (Canada) – $500 million (Series I, valuation $5 billion). The corporate travel and expense service closed the round while expanding its global sales following the recent IPO of its competitor Navan.
Such deals reflect the trend toward capital concentration: according to Crunchbase, over 70% of all investments in American startups in 2025 were concentrated in rounds exceeding $100 million (including a record $40 billion in OpenAI). Similar patterns are observed globally, with more than 60% of global VC capital directed toward giga rounds. The influx of private capital is being facilitated by large funds (SoftBank, Mubadala, fund programs in the USA) and national institutions worldwide.
AI and Investment Boom
The artificial intelligence sector continues to be a driver of venture growth. Analysts estimate that in 2025, investors invested over $200 billion in AI projects—nearly half of all global venture capital investments. This is reflected in numerous rounds and rising valuations: SoftBank and Nvidia are in negotiations for an investment of over $1 billion in the Israeli startup Skild AI (valuation approx. $14 billion) — a developer of universal models for robots.
Additionally, several notable projects have attracted significant investments:
- Flex (USA/India) – $60 million (Series B). The fintech startup is creating AI tools for managing mid-sized businesses' finances, consolidating the entire corporate finance stack onto one platform.
- GC AI (USA) – $60 million (Series C, valuation approx. $555 million). The LegalTech company uses AI for lawyers and office workers, closing an extended round in the industry's prime.
- Google & Accel AI India (India) – investments of up to $20 million (at $2 million in 10 startups). A new program initiated by Google in collaboration with Accel targets early AI projects in creativity, entertainment, and automation.
Leading corporations are also expanding the AI ecosystem: Nvidia is licensing technologies from startup Groq and attracting its leadership to its team instead of a full acquisition, while OpenAI and major IT companies are actively investing in data center infrastructure (the Stargate project with investments from Meta, Google, and Oracle). Such events confirm that investments are flowing into the entire tech stack—from foundational models to supporting services and hardware.
Cybersecurity and Major Deals
In cybersecurity, an arms race continues, and major players are consolidating. Google announced the acquisition of Israeli startup Wiz for $32 billion, while Palo Alto Networks is buying CyberArk for $26 billion—record prices for the industry. Vendor ServiceNow has agreed to pay $7.75 billion for Armis (a 9-year-old company developing software to protect critical infrastructure), more than double its recent valuation. At the same time, venture financing is on the rise: the Ukrainian-Israeli startup Cyera raised $400 million from Blackstone at its $9 billion valuation.
Overall, defense-cyber technologies remain in focus for investors: increased demand for cybersecurity is supported by new funds (e.g., €125 million from Keen VC for European defense startups) and active M&A transactions, preparing new points of capitalization growth.
Fintech, Cryptocurrencies, and New Banks
The financial technology sector is flooded with funds. Mexican fintech Plata, founded by former Tinkoff Bank executives, received a $500 million valuation at $3.1 billion in its latest round, making it one of the market leaders in Latin America. The American "crypto-bank" Erebor Bank raised $350 million, expanding lending services for blockchain companies. Niche solutions are also receiving support: for example, New York startup FINNY raised $17 million for an AI platform for financial advisors and CRM.
After a deep downturn, 2025 has become a time for revived interest in crypto startups: as the blockchain market stabilizes, projects are once again attracting venture investments and looking for long-term funding. This aligns with a global trend: as cryptocurrency services integrate into traditional finance, VC funds are distributing resources into DeFi, stablecoins, and related infrastructure solutions.
Medicine, Biotechnology, and Ecotechnologies
Innovations in medicine and the "green" economy have also captured the attention of venture investors. The Boston biotech project SanegeneBio secured $110 million for developing new RNAi therapies. New York startup Neurable (EEG neurointerfaces) closed a $35 million Series A round for releasing wearable devices that monitor brain conditions. The American platform Truemed (with Andreessen Horowitz among its investors) attracted $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 area of ecology and transportation, a key event was the continuation of financing for "green" technologies. Startup ZeroAvia received $150 million for developing hydrogen engines for aircraft, reinforcing the investment trend in alternative energy and clean transport. Thus, investment diversification is extending beyond AI—the focus is now on climate-related innovations and medical advances.
Government Support and Investment Geography
Alongside private investments, government initiatives to support startups are also on the rise. China has announced the establishment of three venture funds (each exceeding 50 billion yuan) for early-stage startups in "hard tech" (chips, quantum technologies, biomedicine, etc.). In India, Google is launching a new AI fund in collaboration with Accel, planning to invest $2 million in ten promising local startups. In Europe, specializations are emerging; for example, the Dutch fund Keen VC is attracting €125 million for defense and aerospace projects. Sovereign funds from the UAE, Saudi Arabia, and Singapore increased their presence in fintech and "green" technologies in 2025.
Regional ecosystems continue to grow: South America and Africa have seen the emergence of their first unicorns (in fintech, e-commerce, etc.), highlighting the global nature of venture growth. Russia and the CIS, despite sanctions, are witnessing a revival of 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 market is heating the overall picture. Major tech companies continue to shape their portfolios: Nvidia licensed the architecture of the startup Groq and hired its founder instead of acquiring the entire business. Many startups are preparing for their stock market debut; for instance, Navan (formerly TripActions) and eToro are completing successful IPOs, demonstrating prospects for exits to investors. Meanwhile, corporations are amassing funds for acquisitions—against the backdrop of increased valuations and reduced lending rates, a new wave of deals is expected in 2026.
As the New Year approaches, the startup market is gearing up with a moderately optimistic outlook: by the end of 2025, investments and deal ratings are close to record highs, and the portfolios of funds and companies are preparing for profitable exit strategies. Investors are focusing on proven 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 momentum in 2026.
