Global Startup and Venture Capital News for Wednesday, 21 January 2026: Record AI Rounds, Revival of IPOs, Mega Funds, and Key Investment Trends for Venture Capital Firms and Investors.
The start of 2026 in the global venture capital market is marked by confident growth and a surge in activity within the technology sector. After a prolonged downturn in recent years, investors around the world are once again ready to invest significant sums into promising directions – from artificial intelligence to green technologies. According to recent data, total venture investments in Q4 2025 increased by approximately 40% year-on-year — the best figure since the 2021 boom. The confident rise continued into early 2026: within just the first weeks of January, startups globally attracted billions of dollars in funding, including record rounds and the launch of new mega funds. This indicates that the ‘venture winter’ is behind us, and private capital is swiftly returning to technology startups, fuelling a new investment boom.
At the same time, the market is adopting a more selective and cautious approach. Funds and investors are focusing on the sustainability of business models and profitability, preferring companies with proven efficiency. Nevertheless, current trends in the venture market are encouraging. Below, we outline the key news and trends shaping the venture investment agenda as of 21 January 2026.
IPO Market Revives: The Window for Exits Reopens
After nearly two years of dormancy, the long-awaited 'window' for initial public offerings (IPOs) for startups is cautiously reopening. Even at the end of 2025, several successful public offerings demonstrated the market’s readiness to accept new technology companies. For instance, American fintech giant Stripe launched one of the largest IPOs of the decade with a valuation of around $100 billion, while data software developer Databricks made a confident debut, confirming investors’ strong appetite for data and AI sectors. These successful placements have breathed life into the public capital market and laid the groundwork for a new wave of exits.
Signs of IPO revival are evident globally. In Asia, Hong Kong has initiated a new wave of listings, with several large tech companies going public and collectively raising billions of dollars. In the US, the IPO market situation is rapidly improving. The success of Stripe and Databricks has inspired other ‘unicorns’—several highly valued startups are now eyeing IPOs for 2026, waiting for favourable conditions. Rumours are circulating regarding planned public offerings from major projects in fintech, artificial intelligence, and biotechnology. Meanwhile, venture funds are actively preparing their portfolio champions for the public markets. If the window of opportunity remains open, 2026 could see a series of eagerly anticipated startup exits through IPOs.
M&A Wave: The Industry is Consolidating
Against the backdrop of a general industry upturn, consolidation in the technology sector has intensified. In 2025, the number of significant mergers and acquisitions (M&A) involving startups dramatically increased, reaching a decade-high. This trend has continued into early 2026: tech giants with substantial cash reserves are actively acquiring promising companies, aiming to accelerate innovation and expand product lines. The acquisition wave spans diverse segments—from fintech and healthcare to artificial intelligence. For venture investors, such activity signals much-anticipated exits and capital returns, often quicker and more reliable than waiting for IPOs.
In the first few weeks of January, several notable deals have already been announced. For instance, Google agreed to purchase AI chip developer PolyCore for approximately $2 billion to bolster its cloud business. Additionally, an American software developer has announced the acquisition of a European AI startup, strengthening its presence in a new market. It is expected that the M&A market activity will remain high throughout 2026, with major companies continuing to acquire cutting-edge startups at attractive prices, solidifying their dominance and providing returns to investors.
Mega Funds Are Back: Big Money Is in Play Again
Major venture investors are commencing 2026 with record fundraising, marking the return of 'big money' to the market. American giant Andreessen Horowitz (a16z) has announced the raising of over $15 billion in new capital, distributed among several funds—this is a historic amount for the firm and one of the largest in the industry's history. Japanese conglomerate SoftBank has triumphantly returned, launching its third Vision Fund worth around $40 billion, focused on advanced technologies (primarily artificial intelligence and robotics). These mega funds are particularly noteworthy against the backdrop of overall downturn in venture fundraising in 2025: the largest players managed to accumulate capital even under challenging conditions, thanks to the trust of limited partners (LP).
A significant portion of the newly raised billions is expected to be directed towards the most promising areas. Primarily, these include AI startups, as well as projects related to national security, climate innovations, and new infrastructure. The influx of ‘big money’ is already palpable: the market is becoming saturated with liquidity, and competition for the best deals is intensifying, instilling confidence in the industry that it is entering a new phase of growth.
AI Investment Boom Continues: The Sector Sets Records
The area of artificial intelligence remains the primary driver of the current venture upturn, showcasing record funding volumes. The most notable news in recent days was an unprecedented round in the AI sector: startup xAI raised approximately $20 billion in Series E, visibly illustrating the scale of investor appetite. Alongside xAI, other companies are also receiving substantial sums. For instance, the Indian project Indra AI closed a round with $500 million at a valuation of $5 billion—one of the largest venture deals in Asia, highlighting the global nature of the AI boom.
Examples such as xAI and Indra AI confirm that the investment excitement surrounding AI is not an isolated phenomenon. Across the spectrum of AI projects—from content generation and machine learning to cloud infrastructures and specialised chips—the influx of venture capital remains at record levels. Demand for cutting-edge AI solutions shows no signs of waning, despite periodic discussions about industry overheating.
Record Seed Rounds: The Race for Promising Startups
Unprecedented investor activity is unfolding at the earliest stages. Venture funds are now literally competing for the right to invest in promising projects from their inception, resulting in seed rounds reaching previously unseen scales. A notable example is the new AI startup Humans&, founded by alumni from OpenAI and Google: in January it raised around $480 million in its seed stage at a valuation of approximately $4.5 billion. Another case is Merge Labs, established by Sam Altman, which secured approximately $250 million in initial investments (with OpenAI as the lead). These 'mega-seeds' vividly demonstrate venture players' readiness to make huge bets on teams with outstanding experience right from the start—hoping not to miss the next 'unicorn'.
Defence and Strategic Technologies in Investors' Focus
Defence and national security technologies have rapidly moved to the forefront of venture capitalists’ attention. In the US, a course has been set to maintain technological superiority: leading funds, including the new American Dynamism Fund from a16z, are directing considerable funds into dual-use startups—defence, aerospace, cybersecurity, and related fields. Similar trends are evident in Europe: German firm DTCP is forming the largest venture fund for defence technologies in Europe, worth around €500 million, with the first anchor investors already joining this initiative. Consequently, new ‘unicorns’ are emerging in the sector: French startup Harmattan AI, creating AI solutions for defence, recently achieved a valuation of over $1 billion.
Global power rivalries are fuelling interest in startups that can enhance national security. Moreover, venture capital is increasingly collaborating directly with defence industry giants. For instance, the American aerospace startup JetZero raised $175 million from a group of investors led by the B Capital fund and corporation Northrop Grumman. This deal illustrates how defence corporations are directly investing in innovations that align with their strategic interests. In 2026, defence technologies are firmly establishing themselves among the priority areas of the venture market.
Biotechnology and Healthcare Attracting Capital Again
Following a downturn last year, the biotechnology and healthcare startup sector is once again capturing the attention of venture investors. In the first weeks of 2026, several specialised funds targeting biomedical innovations have been announced:
- Bio & Health Fund (USA) – a new fund from Andreessen Horowitz worth $700 million, specifically allocated for investments in American biotech startups (drug development, medical technologies, application of AI in biology).
- Servier Ventures (Europe) – a corporate venture fund from the French pharmaceutical group Servier with a budget of €200 million to finance European startups in oncology and neurology.
The influx of capital demonstrates sustained investor interest in biotech and medicine, despite the challenges of previous years. Following a period during which valuations of many biotech companies fell, the market is revitalising due to scientific breakthroughs and increased focus on health. Major pharmaceutical players have intensified collaboration with startups through venture units and partnerships, aiming for long-term returns from promising drugs and technologies.
Diversification of Investments: Fintech, Crypto, and Green Technologies
Venture activity in 2026 is encompassing a broader range of sectors beyond AI. Following a decline in valuations in recent years, interest in fintech startups is steadily rekindling. The strongest financial technology players have adapted to the new conditions, focusing on profitability and efficiency, which has restored investor confidence. A recovery in deals related to digital payments, online banking, and InsurTech is already being observed—primarily for companies that have demonstrated the resilience of their business models, as well as in emerging markets where fintech potential remains high. At the same time, the blockchain project market is beginning to emerge from the ‘crypto winter’: the rally of Bitcoin to new highs and the stabilisation of the digital asset sector have prompted funds to once again invest in select crypto startups. Attention is chiefly directed toward projects with more mature solutions in the DeFi and Web3 spheres. While caution remains, the gradually returning confidence is opening up new funding opportunities for such startups.
Increased investor interest is also evident in climate technologies. 'Green' startups are receiving record financing amid the global push for sustainable development and decarbonising the economy. Venture funds are actively supporting projects in renewable energy, carbon emission reduction, and the creation of environmentally-friendly infrastructure. The Climate Tech sector is currently one of the most dynamically developing: alongside profit, investors are considering ESG factors, aiming to contribute to solving environmental challenges. It is anticipated that 2026 will witness new unicorns emerging in this area, with interest in 'green' innovations remaining consistently high.
Looking Ahead: Cautious Optimism at the Start of 2026
The venture market enters 2026 with moderately optimistic sentiments. Despite ongoing economic risks and high interest rates, investors are adapting to the new reality. The focus is now on business quality: the sustainability of models and the rapid profitability of startups. The era of ‘growth at all costs’ is behind us—it has been replaced by discipline and effective capital use. Many funds are now more meticulous in selecting projects and weighing companies before investments.
Simultaneously, a window for IPOs, effectively closed from 2022 to 2024, is gradually reopening. Successful placements in late 2025 and a pool of mature unicorns create a foundation for a new wave of public offerings under favourable conditions. The M&A market is also reviving: large corporations with accessible capital are ready to acquire promising startups at more reasonable prices, ensuring funds with the long-awaited exits. Thus, 2026 promises the industry new challenges and opportunities. Overall, the venture capital sector enters 2026 with cautious faith in further growth—the first weeks have already confirmed the market’s readiness for a new stage of development.
