Current Startup and Venture Capital News for Monday, November 17, 2025: The Return of Mega Funds, Record AI Rounds, IPO Market Recovery, M&A Wave, Revitalization of Crypto Startups, and New Unicorns. A Comprehensive 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, the total volume of venture capital investment reached around $97 billion in Q3 2025 – almost 40% more than the previous year, marking the best quarterly performance since 2021. The "venture winter" of 2022-2023 is behind us, and the influx of private capital into tech startups has noticeably accelerated. Major funding rounds and the launch of new mega funds signal a return of investors’ appetite for risk, although they continue to act selectively and cautiously.
Venture activity is increasing across all regions. The USA remains a leader (especially with robust funding for AI projects), investment volumes in the Middle East have approximately doubled year-over-year with the support of sovereign funds, and Europe is experiencing an upswing – Germany has for the first time overtaken the UK in attracting venture capital. In Asia, record capital flows are being drawn into India and Southeast Asia against a relative decline in activity in China. Technology hubs are emerging in Africa and Latin America, while the startup scenes in Russia and the CIS are also striving not to lag despite external constraints. Overall, the global market is gaining strength, although investors are still investing selectively—in the most promising and resilient projects.
- The Return of Mega Funds and Major Investors. Leading venture players are amassing record capital and actively investing in startups again, flooding the market with capital and rekindling risk appetite.
- Record AI Rounds and New Unicorns. Unprecedented mega funding rounds in artificial intelligence are skyrocketing startup valuations to new heights and giving rise to a wave of new "unicorns."
- The Revival of the IPO Market. Successful IPOs of tech 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.
- A Wave of Consolidation and M&A. Major merger and acquisition deals are reshaping the industry landscape, creating new opportunities for profitable exits and accelerated growth for companies.
- The Return of Interest in Crypto Startups. After a prolonged crypto winter, blockchain projects are receiving significant funding and attention from funds and corporations again.
- Local Focus. New funds and initiatives for developing local startup ecosystems are emerging in Russia and the CIS, attracting investor interest despite constraints.
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, indicating a new wave of risk appetite. Following the decline in venture fundraising in 2022-2024, leading firms are resuming capital raising and launching mega funds, demonstrating faith in the market's potential. For instance, the Japanese conglomerate SoftBank announced the launch of its new Vision Fund III, worth around $40 billion. In the USA, Andreessen Horowitz is forming a record-sized fund (~$20 billion) focused on late-stage investments in AI startups.
Sovereign funds in the Middle East are also ramping up, injecting billions of dollars into high-tech projects and creating regional technology hubs. At the same time, dozens of new venture funds are emerging across all regions, attracting significant institutional capital for investments in tech companies. The return of such "mega structures" means more funding opportunities for startups but also increases competition among investors for the best projects.
Record Investments in AI: A New Wave of Unicorns
The artificial intelligence sector remains the main driver of the current venture upswing, showcasing record funding volumes. Estimates suggest that about half of all venture investments in 2025 are directed toward AI startups, with total global investment in AI potentially exceeding $200 billion by year-end—a historic level for the sector. This surge is driven by the promise of AI technologies to dramatically increase efficiency across numerous sectors and unlock multi-trillion-dollar markets—from industrial automation to personal digital assistants. Despite warnings of potential market overheating, funds continue to ramp up investments out of fear of missing 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 goes to a select few companies leading the AI race. For example, the French startup Mistral AI secured around $2 billion, while OpenAI simultaneously raised $13 billion—both mega rounds sharply boosted company valuations. Such deals inflate startup valuations but simultaneously concentrate resources in the most promising areas, creating a foundation for future breakthroughs.
In recent weeks, several companies have announced significant funding rounds, confirming the return of "big checks" to the market. Notable examples include:
- Synthesia (UK) – raised $200 million at a ~$4 billion valuation to develop its AI video generation platform (led by Alphabet’s GV fund).
- Armis (USA) – secured $435 million in a pre-IPO round at a $6.1 billion valuation to expand its IoT cybersecurity platform (investor leaders – Goldman Sachs and CapitalG).
- Cursor (USA) – raised around $2.3 billion in its latest funding round, elevating its valuation to ~$29 billion just five months after the previous round, underscoring unprecedented excitement around AI tools for developers.
The Revival of the IPO Market and Exit Prospects
Against the backdrop of rising valuations and capital inflow, tech companies are once again actively preparing for public market entries. After nearly two years of stagnation, there is a noticeable upsurge in IPOs as a primary exit mechanism for venture funds. Several successful listings in 2025 have confirmed the reopening of the "window" of opportunity: for instance, the American fintech "unicorn" Circle successfully completed its IPO at an estimated valuation of around $7 billion—this debut has restored investors' confidence in the market's appetite for new tech issuers. Following this, several large private companies are keen to capitalize on the favorable circumstances. Insider reports suggest that the creator of ChatGPT—OpenAI—is considering its own IPO in 2026 with a potential valuation of up to $1 trillion, which would be unprecedented for the industry. The blockchain company ConsenSys (developer of the MetaMask wallet) is also preparing for a listing in 2026.
The improved climate and gradual clarity in regulation (e.g., the adoption of special stablecoin laws and the anticipation of approval for Bitcoin ETFs) give startups confidence: the public market has once again become a viable option for raising capital and serving as an exit for investors. The return of successful IPOs is crucial for the venture ecosystem: profitable exits allow funds to recover investments and reallocate freed-up resources into new projects, closing the investment cycle.
Sector Diversification: Broadened Investment Horizons
In 2025, venture investments are encompassing a much broader array of sectors, no longer limited to just artificial intelligence. Following last year’s downturn, fintech is revitalizing: significant funding rounds are occurring not only in the USA but also in Europe and emerging markets, fueling the growth of new digital financial services. Simultaneously, capital is being actively directed into climate and "green" projects as sustainability takes center stage. Aerospace and defense technologies are gaining traction – funds are increasingly investing in aerospace startups, drone systems, and defense tech.
Consequently, the investment focus is significantly broadening: in addition to AI innovations, venture capital is now moving into fintech, environmental startups, biotech/medtech, security projects, and other sectors. This broad diversification makes the entire startup ecosystem more resilient and reduces the risk of overheating in specific segments. Notably, the healthcare sector emerged as the third-largest in the world in terms of venture investments in Q3, attracting around $15-16 billion. For example, the American medtech startup Forward Health raised $225 million in its Series D round (with investors like SoftBank and Founders Fund), pushing its valuation above $1 billion and granting it "unicorn" status. There is also a resurgence in interest in defense technologies (highlighted by Anduril Industries in the USA, which received $2.5 billion, doubling its valuation to ~$30 billion), and a partial restoration of trust in the cryptocurrency industry has enabled some blockchain projects to once again secure funding.
A Wave of Consolidation and M&A Deals
Inflated startup valuations and fierce market competition have led to a new wave of mergers and acquisitions. Tech giants are renewing their activity, seeking to acquire key technologies and talent: for instance, Google agreed to acquire the Israeli cybersecurity startup Wiz for approximately $32 billion—a record amount for the Israeli tech industry. Such large-scale M&A activity indicates that the startup ecosystem has matured: established companies are either merging with one another or becoming acquisition targets for corporations, and venture investors finally have a chance at long-awaited profitable exits.
Consolidation is also affecting the venture sector itself. In October, the major investment bank Goldman Sachs announced its acquisition of the venture firm Industry Ventures for approximately $1 billion—one of the largest deals of the year within the VC market, reflecting the growing interest of traditional financial institutions in tech assets. Additionally, the crypto industry is also showing signs of consolidation: according to sources, payment giant Mastercard is close to acquiring a blockchain infrastructure startup (provider of technology for stablecoins) for up to $2 billion. These moves confirm the intent of major players to establish a foothold in promising niches and accelerate the market's reconfiguration in favor of larger, more sustainable companies.
The Return of Interest in Crypto Startups
After a prolonged downturn during the "crypto winter," the blockchain startup market noticeably revitalized in the second half of 2025. In the fall, the sector attracted the highest funding volumes in several years, largely thanks to the clarification of rules: regulators are introducing clear regulations (e.g., stablecoin laws, the potential approval of Bitcoin ETFs), and major financial corporations are returning to the realm of digital assets. As a result, the influx of venture capital into the crypto segment has sharply increased.
Remarkably, one of the largest venture deals of the year outside the AI sphere has been a crypto startup: the American project Polymarket raised around $2 billion (at an estimated valuation of about $9 billion) to develop a decentralized predictive markets platform. Infrastructure solutions for digital currencies are also beginning to gain support—notably, the startup Hercle (USA), which is developing a platform for issuing stablecoins, recently secured about $60 million in funding. Overall, cleaned of speculative ballast, crypto startups are gradually regaining trust and once again attracting attention from venture funds and corporations. The participation of traditional financial players and clearer rules are setting the stage 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 striving to develop against the backdrop of global recovery. Over the past year, several new venture funds (with a total volume in the tens of billions of rubles) have emerged in the region, and state institutions and major corporations have launched programs to support technology—new accelerators, specialized funds, and grant competitions for innovative projects have been created. The volumes of venture investment in the Russian Federation and CIS are still relatively modest by global standards, and significant barriers remain (high interest rates, sanctions, etc.). Nevertheless, the most promising local startups continue to attract funding and grow, focusing on local market niches.
The formation of a domestic venture infrastructure is gradually creating a foundation for the future—by the time external conditions improve and global investors are able to return to the region more actively. Notably, in 2025, restrictions for foreign investors looking to invest in local projects were partially lifted in Russia, gradually rekindling interest from foreign capital. Such local initiatives, despite geopolitical challenges, integrate Russian and neighboring markets into global trends and prepare them for participation in a new venture upswing.
Conclusion: Cautious Optimism
The atmosphere in the venture capital industry has settled into a moderately optimistic tone. On one hand, the rapid rise in startup valuations—especially in the AI segment—draws parallels to the dot-com boom era and serves as a reminder of the risks of market overheating. On the other hand, the current investment excitement is directing enormous resources and talent towards 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 funding volumes are being recorded, significant IPOs are on the horizon, and the largest funds have amassed unprecedented pools of capital for investments. Meanwhile, investors are acting more selectively, primarily investing in the most promising projects with sustainable business models. The key question going forward is whether high expectations surrounding the AI boom will be met and whether other sectors will raise their attractiveness to capital. However, appetite for innovation remains high, and market participants are looking ahead with tempered enthusiasm, hoping for further balanced growth of the venture ecosystem.
