Latest Startups & Entrepreneurship News
Global Dealmaking Tops $4 Trillion in 2025 with AI-Driven Consolidation
Axios reports 2025 dealmaking crossed $4 trillion, fueled by AI optimism as companies acquire capabilities like talent, data, and platforms rather than building internally. This accelerates consolidation in AI hardware via partnerships, licensing, or acqui-hires, reshaping startup outcomes toward strategic acquisition fits.
Regulators may revisit AI deals involving data or compute control.
AI Startups Raise Record $150B in 2025, Building Fortress Balance Sheets
U.S. AI startups amassed a record $150B funding cushion to lock in capital amid bullish sentiment and prepare for potential 2026 tightening, per Financial Times. This defensive strategy reflects memories of market shifts, enabling aggressive scaling.
The trend highlights maturing AI investments focused on ROI-driven outcomes.
Reflection AI Secures $2 Billion in Q4 2025 Top Funding Round
Reflection AI topped Q4 2025 funding with a $2 billion raise, part of five mega-rounds over $1B signaling investor confidence in AI, energy, and scalable products. These outsized investments point to emerging private-market leaders.
Late-stage capital flows heavily into high-potential sectors.
Anysphere Raises $1.98 Billion for AI Coding Assistant Cursor
San Francisco-based Anysphere, founded in 2022, raised $1.98 billion for its AI-powered 'vibe coding' platform Cursor that aids developers in writing and refactoring code. The funding underscores demand for collaborative AI tools in software development.
It ranks second in Q4's top rounds.
Lambda Closes $1.5 Billion Series E for AI Computing Systems
Lambda, a 2012-founded San Francisco startup, secured $1.5 billion at a $5.9B post-money valuation to build gigawatt-scale AI factories. Investors include T. Rowe Price and NVIDIA; its Forge Price implies $7.49B valuation as of Dec 17.
Products like GPU Cloud drive AI/ML efficiency.
Meta Acquires Chinese-Founded AI Agent Startup Manus
Meta confirmed acquisition of Manus, which launched virally in March 2025, raised $75M in April at $500M valuation, and hit $125M revenue run rate by December. The deal, initiated in October/November, boosts Meta's AI investments after Manus relocated to Singapore.
Announcement came December 29.
OpenAI Raises $40 Billion at $300 Billion Valuation in 2025
OpenAI led 2025 AI funding with $40B raised at $300B valuation, though a mid-year vibe check tempered early-year frenzy. Rival Anthropic closed $16.5B across rounds, reaching $183B valuation with investors like Iconiq and Qatar Investment Authority.
Funding shifted toward proven outcomes.
New VC Funds Launched in Europe Q4 2025
UK's Baobab Ventures launched a $15M deeptech fund backed by Cendana Capital and others; London's Onstage debuted £10M early-stage fund with LPs like Alex Chesterman. These target pre-seed/seed European founders amid regional investment push.
Funds highlight growing European VC activity.