Latest Startups & Entrepreneurship News

📅December 28, 2025 at 1:00 PM
2025-end shows AI-led funding concentration, mega M&A for security/AI infra, tougher Series A standards, retail funding slump, and regional startup growth.
1

AI funding concentrates in megafunds, global AI investment tops $200B in 2025

Global AI startups raised roughly $202.3 billion in 2025, driven largely by very large institutional megafunds contributing the majority of capital and concentrating bets on proven leaders; this has raised the bar for founders seeking Series A fundingSource 7.

2

Investors redefine Series A expectations after AI boom

Investors say Series A now requires demonstrable product‑market fit, proprietary tech advantages, and cross‑functional teams as capital selection tightens following the AI surgeSource 9.

3

Deal paradox: fewer large rounds by count but larger ticket sizes

2025 saw a decline in the volume of mega deals, yet average capital per startup rose as investors concentrated larger checks into fewer, more proven companies, creating a ‘mega deal paradox’Source 4.

4

Nvidia strikes major licensing and asset deals with AI chip startups

Nvidia has executed large licensing/asset transactions with AI chip companies as incumbents secure hardware and IP to sustain AI growth and supply chains in 2025Source 5.

5

ServiceNow acquires cybersecurity startup Armis for $7.75B

ServiceNow announced a cash acquisition of cybersecurity startup Armis valued at $7.75 billion, underscoring strong strategic M&A activity in security and enterprise softwareSource 5.

6

Retail startups face funding squeeze; select deals still raised millions

VC dollars into retail startups in 2025 fell sharply from pandemic peaks, but at least 11 retail ventures still raised $2M+ this year, led by large rounds such as Gopuff’s $250M raiseSource 2.

7

European startup ecosystem matures with 100+ unicorns and sector focus

Europe’s startup landscape has expanded rapidly through 2025, with over 100 active unicorns and concentrated activity in fintech, healthtech, AI and renewables as regional hubs scaleSource 1.

8

AI startup trends: generative, explainable, and edge AI lead product roadmaps

By 2025 generative AI, explainability, and edge deployments are primary trends shaping AI startups; founders still struggle with data access, talent, and ethics despite strong investment interestSource 3.

9

New funds and exits fuel Israeli and private equity expansion plans

After sizable exit gains in December, firms such as AP Partners are targeting larger funds (e.g., aiming toward $400M) to scale follow‑on investments in the regionSource 6.

10

Founders and investors reflect on 2025 lessons: pragmatic growth over hype

Industry retrospectives emphasize a shift from speculative bets to discipline: investors prioritize durable revenue models and operational rigor while founders must demonstrate measurable outcomesSource 10.

11

Capital targeted to AI infrastructure startups as data center and tooling needs grow

Seed and growth capital flowed into AI infrastructure startups, exemplified by rounds like Lucidean’s $18M seed to tackle AI data‑center challenges and tooling needs for model deploymentSource 8.