Startup and Venture Investment News — Wednesday, December 24, 2025: AI Dominance, the Return of Mega Funds, and IPO Revitalization
By the end of 2025, the global venture capital market is demonstrating steady growth following several years of decline. Investment in startups has significantly increased, and major players and institutional investors are becoming active again. Governments in various countries are also launching initiatives to support innovation. The overall dynamics suggest a new cycle of venture growth, although investors remain selective and cautious in deal-making.
Venture activity is rising across all regions. The United States continues to lead (especially in the artificial intelligence (AI) sector), the Middle East is showing record growth in investments, while India, South-East Asia, and countries in the Gulf region are attracting significant capital amid a relative decline in China. Russia and the CIS, despite external constraints, are working to develop their own startup ecosystems. Africa and Latin America are also witnessing an influx of investments and the emergence of new tech companies. The return of large capital is a global phenomenon, albeit unevenly distributed across countries and sectors.
Below are 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 about half of all funding.
- The return of mega funds and large investors. Leading venture funds have increased their volume; new investment “mega funds” have been launched, ensuring capital influx into the market.
- Record mega funding rounds and new "unicorns." Unprecedented-sized rounds are raising startup valuations to new heights, leading to dozens of new companies becoming “unicorns.”
- Revitalization of the IPO market. Successful public offerings by tech companies and new applications confirm that the long-awaited "window" for exits remains open.
- Diversification of sectors. Venture capital is directed not only into AI but also into fintech, climate technologies, biotech, defense developments, and cryptocurrency projects.
- Consolidation and M&A deals. Large 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 under 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 accounted for about 50% of the global venture capital volume (over $200 billion of the total). In comparison, the share of AI last year was around 34%. Investments in the AI sector surged by approximately 75% compared to 2024, marking an unprecedented leap.
Massive funds are being allocated 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 related to artificial intelligence: OpenAI is valued at around $500 billion (after a recent funding round of tens of billions), while its competitor Anthropic has reached a valuation of about $180 billion. Together, these two companies attracted around 14% of all venture investments globally over the year. The United States completely dominates this segment: nearly 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 gigantic rounds: for example, Meta invested $14.3 billion in Scale AI, while SoftBank led a record funding round for OpenAI (around $40 billion). As a result, the largest players are accumulating a significant share of capital while also 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 seek alternatives (like partnerships for access to computational resources).
The Return of Mega Funds: Big Money is Back in the Market
In 2025, the largest investment players triumphantly returned to the venture arena. After a hiatus in recent years, leading funds and investors are ready to invest significant amounts in startups again. The Japanese conglomerate SoftBank launched its third Vision Fund with approximately $40 billion, targeting advanced technologies (AI, robotics, etc.). Sovereign funds from the Middle East have also increased their activity, with billions of dollars being invested by government investors in tech projects, and state mega-projects and tech hubs being created to support the startup sector.
Alongside this, new venture funds of all sizes continue to emerge worldwide. Just in December, the cumulative volume of announced new funds exceeded $9 billion (with at least 16 new venture and private funds launched in the month). Major global funds have accumulated record levels of dry powder: in the U.S. alone, venture investors hold hundreds of billions of dollars in uninvested funds ready for deployment. This influx of "big money" is filling the ecosystem with liquidity, providing resources for new funding rounds, and supporting the rising valuations of promising companies.
In addition to private funds, government initiatives are beginning to play a significant role worldwide. For instance, Europe has launched the Deutschlandfonds, amounting to €30 billion, aimed at attracting up to €130 billion in private investments in tech startups, energy transformation, and Germany's industry. Governments recognize the importance of the venture market for economic competitiveness and are willing to temporarily act as catalysts for investment. The return of significant sources of capital—both private and public—instills confidence in the industry for the continued growth of venture investments.
Record Rounds and New "Unicorns": Investment Boom
The venture market of 2025 is characterized not only by overall growth but also by the concentration of capital in the largest deals. Mega rounds (hundreds of millions and billions of dollars in a single round) have become commonplace, particularly in the AI sector. The lion's share of all funds is concentrated in a limited number of companies: estimates suggest that several dozen startups received about a third of the total funding volume throughout the year. Late rounds (Series C and beyond) grew by over 60% compared to last year, while the number of early-stage deals is decreasing. A "two-speed" market is forming: the largest "unicorns" easily attract billion-dollar checks, while young teams find it harder to close rounds—investors are imposing higher requirements for products and revenues.
Nonetheless, the investment boom has spawned a new wave of “unicorn” companies. In 2025, dozens of startups around the world attained unicorn status (valuation above $1 billion)—for the first time since the boom of 2021, we are witnessing such a massive emergence of highly valued companies. Unicorn births are particularly active in the AI and fintech segments but also occur in other industries. While experts warn about the risks of overheating, many funds are eager not to miss the opportunity to invest in potential market leaders at relatively early stages of their growth.
Examples of large venture rounds in 2025 include:
- OpenAI — raised around $40 billion in funding over the year (a record round led by SoftBank), reaching a valuation of approximately $500 billion.
- Anthropic — secured multi-billion funding from a consortium of investors (including major tech giants), bringing its valuation up to about $180 billion.
- Scale AI — a data startup for AI attracted $14.3 billion from Meta and partners, marking one of the largest rounds of the year.
- Cerebras Systems — a developer of AI hardware accelerators raised $1.1 billion in its Series G round (valuation ~$8 billion) with participation from Fidelity and others.
- Vercel — a platform for AI-oriented web development closed $300 million (Series F round) at a valuation of $9.3 billion.
- Crystalys Therapeutics — a U.S. biotech startup raised $205 million in its Series A round for new drug development (one of the largest rounds in biotech for the year).
IPO Market Revitalization: The Window for Exits is Open
After a prolonged hiatus in 2020-2023, the global IPO window has finally opened wide. The year 2025 brought a series of successful public offerings from venture companies, reviving investor confidence in the stock market for tech newcomers. In Asia, Hong Kong initiated a new wave of IPOs: several major Chinese tech firms went public, collectively raising billions of dollars (for example, battery manufacturer CATL raised $5.2 billion in its share placement). The situation also improved in the U.S. and Europe: American fintech unicorn Chime made a successful debut on the New York Stock Exchange (its stock rose 30% on the first trading day), followed by others, including Swedish payment service Klarna. The total number of unicorns that conducted IPOs in 2025 exceeds two dozen, which is significantly higher than the zero figures of the previous two years.
Investors are once again willing to view IPOs as a realistic exit scenario. Moreover, even larger offerings are planned for 2026: for instance, 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 realize profits and free up capital for new investments. Although the market remains selective (not all recent IPOs are trading above their offering price), the very existence of an "opportunity window" has revived the late-stage venture market. Many mature startups are accelerating preparations for going public, hoping to take advantage of favorable conditions.
Diversification of Investments: Broader Sector, Broader Opportunities
The explosive growth of AI does not mean that all capital is directed only into one sector. On the contrary, 2025 marked a resurgence of funding across many other sectors. Fintech is regaining investor attention: significant rounds have occurred not only in Silicon Valley but also in the European market and emerging economies. Climate technologies are attracting more funding amid the global trend towards sustainability; in Europe and the U.S., funds focused on clean-tech and energy startups have emerged (notably, several large deals have taken place in renewable energy infrastructure and electric vehicle sectors).
Biotech is still receiving funding: despite risks, investors are backing promising biomedical projects (especially in genetics and pharmaceutical developments — 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 security, unmanned systems, and space services. Finally, after a period of declining interest, the blockchain startup and crypto financial services segment is experiencing a revival: rising cryptocurrency prices in 2025 have brought attention back to this area from some venture funds, and several blockchain projects have managed to raise rounds in the tens of millions of dollars.
Thus, by the end of 2025, the venture market has become more diverse. Investors are broadening their horizons in search of promising directions, realizing that the next “big thing” may emerge not only in AI but also at the intersection of other sectors—from fintech and health to energy and environmental protection.
Consolidation and M&A: Enlarging Players
The return of large money and high valuations for startups have led to a new wave of consolidation in the market. Major companies and unicorn leaders have ramped up mergers and acquisitions to strengthen their positions and gain access to technologies. For instance, in 2025, OpenAI acquired the startup Statsig, expanding its toolkit for developers. Corporations are back on the “hunt” for promising teams: for example, major corporate software developer Workday acquired the AI startup Sana (which focuses on automating HR processes), and the Google-funded company Isomorphic Labs purchased several small biotech projects to enhance its portfolio.
At the same time, some conglomerates are optimizing their innovation divisions by spin-offing non-core areas into standalone companies. This opens up opportunities for venture deals: new startups are emerging directly within large firms and receiving initial funding for independent development. The surge in M&A activity and corporate spin-offs is changing the landscape of the industry, consolidating key players while providing exits through acquisitions. For venture funds, this means more exit options beyond IPOs.
Consolidation is especially evident in competitive areas: fintech is seeing mergers for client bases, the AI sector for access to unique models or data, and cybersecurity for the integration of solutions. While acquisitions reduce the number of independent startups, they indicate market maturation: the most successful projects attract the attention of giants and become part of larger ecosystems. This is the natural path for many teams and a crucial indicator of the health of the venture market, where the strongest get a chance to scale through merger deals.
Russia and CIS: Local Market Seeks Growth
Amid global trends, the startup ecosystem in Russia and CIS countries in 2025 is attempting to emerge from a prolonged downturn. Despite geopolitical constraints and a reduction in foreign capital, local venture activity has revitalized in the second half of the year. New funds and investors focused on the domestic market are emerging. For example, the communications group “Mikhailov and Partners” announced the establishment of the Rosventure fund for investments in tech projects, while the cybersecurity solutions developer R-Vision launched a corporate venture fund amounting to 500 million rubles. Additionally, with support from government structures, several targeted funds and accelerators have been formed (including the "Sirius Innovations" fund in collaboration with the Russian Direct Investment Fund for 1 billion rubles) to finance promising Russian startups.
The total volume of venture investments in Russia remains modest compared to market leaders, yet there are signs of stabilization. Major domestic IT companies (e.g., Yandex and Sber) continue to invest in new directions, although approximately only $30 million was directed at AI projects within the country in 2025. Nevertheless, the local venture market is alive: deals are being made, and technologies are being created for domestic and neighboring markets. Notable deals of the year include investments from the KAMA FLOW fund (in collaboration with OSNOVA Capital) in AI platform development projects:
- Platformeco — attracted 100 million rubles from KAMA FLOW for developing a platform for integrating and managing APIs related to AI agents.
- Piklema Group — received 1 billion rubles in investments from the joint fund KAMA FLOW and OSNOVA Capital to scale its technology solutions in the Russian market.
While the scale of funding in the region is small, the emergence of new funds and deals inspires optimism. Local investors and corporations are stepping into the role of innovation drivers in the absence of significant foreign investments. Niche areas are developing, from agrotech to import substitution projects. Russia and neighboring countries are eager not to miss the global trend towards technological entrepreneurship, preparing the ground for future growth when external conditions improve.
Conclusions: Moderate Optimism on the Brink of 2026
The end of 2025 is marked by the recovery of the venture industry and the return of investor confidence. Large rounds and IPOs have demonstrated market viability, and the emergence of new funds promises continued capital inflow. At the same time, a level of caution remains: funds are meticulously selecting projects, avoiding excessive euphoria. The focus is on quality growth and long-term sustainability of startups.
Venture investors are entering 2026 with restrained optimism. Funding rates are expected to remain high, especially in leading sectors like AI, although some adjustment in valuations may occur after the rapid rise. The key factor for success will be the ability of startups to demonstrate real business growth and technology monetization. Overall, the venture market is emerging from a downturn period stronger and more mature: the accumulated dry powder is ready for deployment, and startups worldwide have the chance to turn the received investments into new breakthrough products and services.
