Startup and Venture Capital News — Wednesday, February 11, 2026: The Return of Mega Funds, Record AI Deals, IPO Revival, Major M&A Transactions, and Market Trends
The venture capital market enters 2026 with signs of revitalisation and new records. By mid-February, several significant events are unfolding: the largest investment funds are once again attracting colossal amounts of capital, startups in artificial intelligence (AI) are setting records in fundraising rounds, the window for initial public offerings (IPOs) is beginning to open, and mergers and acquisitions are gaining momentum. Simultaneously, investors are focusing on promising sectors — from AI and defence technologies to sustainable "green" projects. Let us take a closer look at the key trends and startup news in the venture capital space as of this date.
The Return of Mega Funds to the Venture Market
After a period of relative quiet in 2025, venture mega funds are re-emerging in the market. The largest investors are demonstrating their capability to attract record capital. A landmark event was the announcement of new fund rounds from Andreessen Horowitz (a16z) — the firm raised over $15 billion for scaling startups, artificial intelligence, and strategic sectors. This fundraising round occurring less than two years after the previous one indicates that limited partners (LPs) remain willing to invest in top-tier venture teams. Despite the challenges of the past few years and a decrease in the number of new funds in 2025, major players like a16z, Sequoia, and others continue to attract mega-sized capital. The return of the mega funds signals a restoration of trust in the venture market and a willingness to finance innovative new projects.
Record Venture Rounds in AI
The artificial intelligence (AI) sector continues to attract the lion’s share of investment, setting new records for startup funding volumes. The largest deals at the beginning of 2026 have been in AI companies, demonstrating that investors are willing to put substantial sums into industry leaders. Some of the most notable rounds include:
- Waymo (autonomous vehicles, USA) — raised approximately $16 billion in new funding at a valuation of around $126 billion. The round was led by Dragoneer, DST Global, and Sequoia Capital; the startup plans to expand into new markets (with ambitions to launch in 20 cities worldwide, including Tokyo and London).
- Cerebras Systems (AI processors, USA) — secured $1 billion in a Series H round, reaching a company valuation of around $23 billion. Tiger Global led the funding.
- ElevenLabs (generative audio AI, USA) — attracted $500 million in a Series D round, with a valuation of around $11 billion. This round was led by Sequoia Capital; the company reports rapid revenue growth thanks to the demand for AI-generated voiceovers.
These record investments underscore investors' appetite for companies leading the AI technology race. Notably, support is not limited to American startups — a similar trend is observed worldwide. For instance, the Japanese conglomerate SoftBank placed a significant bet on AI model developer OpenAI: in December, SoftBank invested over $40 billion for roughly 11% of the company, and in early 2026, plans were announced to invest an additional up to $30 billion in a potential mega round that could elevate OpenAI's valuation to an astounding $800+ billion. Consequently, large investors are effectively going "all-in" on AI. Corporations are also very active: compared to last year, corporate investments in AI startups have surged nearly twofold. Clearly, artificial intelligence continues to be the main focal point for venture capital, with select companies in this sector capable of attracting unprecedented sums.
Revival of the IPO Market
After a prolonged downturn in public offerings, tech companies are once again preparing to go public. Experts are discussing an IPO revival: investment banks and analysts forecast a surge in major listings throughout 2026. For instance, Goldman Sachs estimates that the total volume raised in IPOs on the American market could reach a record $150–160 billion if the most anticipated "unicorns" proceed with their listings this year. The list of potential debutants is impressive. Chiefly, attention is focused on SpaceX of Elon Musk: the space company, which recently merged with his AI startup xAI, is preparing for an IPO expected by mid-2026, potentially valuing the combined business at more than $1.5 trillion. If SpaceX raises over $25 billion at its IPO, this will set a record for the largest IPO in history, surpassing that of Saudi Aramco. Also on the horizon are AI giants. OpenAI, according to insiders, is exploring the possibility of an IPO by the end of 2026 with a target valuation of around $1 trillion, although the company's management is not rushing into the public market just yet. Another AI developer, Anthropic, has reportedly hired advisors to prepare for a potential listing. In addition to these, IPOs of several well-known fintech and software unicorns, such as Stripe and Databricks, are anticipated if market conditions prove favourable. Already, there are encouraging signs: at the beginning of February, two biotech companies successfully went public, raising a combined total of approximately $350 million, indicating a renewed investor appetite for new listings. Of course, risks remain — market volatility or corrections in the tech sector could impact these plans. However, the overall sentiment is positive: 2026 may well herald a turning point for the IPO market after several "cold" years.
Activation of M&A Transactions
Major mergers and acquisitions (M&A) are once again in the spotlight, as corporations seek to bolster their positions through the acquisition of promising startups. One of the most notable events was Google’s acquisition of the cloud cybersecurity startup Wiz. The deal, valued at approximately $32 billion, became Google's largest acquisition in history and received approval from European antitrust authorities in February, confirming the absence of significant threats to competition. For Google, this step strengthens its cloud business and marks its entry into the elite of cybersecurity. Another unprecedented case is the announced merger of SpaceX and xAI of Elon Musk. Formally, this is the acquisition of the younger AI startup by the flagship company SpaceX, resulting in a colossal tech duo with a valuation of around $1.25 trillion ahead of the IPO. This move not only addresses xAI's financial troubles but also lays the groundwork for the synergy of space and artificial intelligence technologies, preparing the path for a future public offering. Overall, the trend is clear: tech giants are actively acquiring innovative companies, bolstering their ecosystems. In addition to mega deals, specific acquisitions continue in the fintech and SaaS sectors, as well as startups being acquired by major industrial players seeking new technologies. The rise in the number and scale of M&A transactions indicates a stage of market consolidation, where large companies are utilising accumulated capital for strategic purchases.
The FinTech Sector Emerges from Decline
The financial technology (FinTech) sector, which experienced a downturn in activity last year, is showing signs of recovery. In the early weeks of February 2026, FinTech startups worldwide raised over $1 billion.
The Geography of Venture Investments: A Global Perspective
The venture boom at the beginning of 2026 is global in nature. While the largest deals are traditionally concentrated in the USA (Silicon Valley continues to generate the most valuable unicorns and mega rounds, as exemplified by Waymo and others), other regions are not lagging behind. Europe is demonstrating its own success: only in January, Europe welcomed at least five new “unicorns”—startups valued at over $1 billion. Notably, the geography of these companies is diverse, spanning from Belgium and France to Lithuania and Ukraine. The sectors of the new European unicorns include cybersecurity, cloud services, military technologies, ESG platforms, and educational applications. The involvement of investors such as BlackRock, Temasek, and DST Global in European funding rounds confirms that international capital is actively entering European projects. Asia is also making its contribution: in Japan and China, major conglomerates and funds are investing in AI technologies and electronics (a striking example being SoftBank's aggressive investments in OpenAI). The Middle East is increasing its presence through sovereign funds — for example, from Qatar and the UAE — investing hundreds of millions of dollars in Western and Asian startups. India and Southeast Asia continue to grow their own startup ecosystems: news of new funding rounds for Indian tech companies is emerging weekly, albeit on a smaller scale, indicating a broad involvement of emerging markets. Overall, venture investments are spreading everywhere, and competition for the best deals is becoming international in nature — capital is flowing to where promising teams and technologies exist, be it Silicon Valley, London, Tel Aviv, or Bangalore.
Focus on AI and Defence Technologies
Analysing the general trends, a clear focus of investors on artificial intelligence and defence technologies can be distinguished. The rapid implementation of AI across all industries has led to practically every major fund having a strategy to increase investments in AI startups. Concurrently, the heightened geopolitical climate and technological rivalry among nations (primarily the USA and China) have brought defence and dual-use technologies into the spotlight. In the USA, the launch of dedicated venture funds focused on national security and critical technologies (for example, a16z has allocated over $1 billion to the American Dynamism fund, investing in defence, equipment, infrastructure, etc.) reflects a governmental priority to maintain technological leadership. Similarly, in Europe: the French startup Harmattan AI, developing autonomous drones, secured $200 million backed by aerospace giant Dassault Aviation and contracts with the Ministry of Defence — a telling example of the synergy between the defence sector and venture capital. Overall, defence startups, cybersecurity, and intelligence technologies are now being actively funded not only by the government but also by private investors who understand the growing demand for these solutions. The AI and defence sectors increasingly intersect — from AI-based spacecraft to military analytics systems — creating a new niche for venture growth. It is expected that in 2026, the share of deals in these areas will continue to grow, supported by both private and public capital.
Sustainable Development and "Green" Investments
Despite the excitement surrounding high technology, the agenda of sustainable development (ESG) remains a focus. Climate and environmental startups continue to attract funding, albeit less conspicuously against the backdrop of AI deals. By the end of 2025, the total global investment in climate technologies even increased by several percentage points (to roughly $40 billion), despite an overall decline in the number of deals — a sign that investors are looking at the long term and not withdrawing support for "green" innovations. In Europe, the tightening of regulations regarding sustainability is stimulating demand for corresponding solutions: a notable example is the transformation of the German ESG platform Osapiens into a "unicorn" after raising $100 million at a valuation of $1.1 billion — supported by funds established by giants like BlackRock and Temasek aimed at decarbonisation. Worldwide, new technologies are being developed in clean energy, emissions management, electric mobility, and waste recycling, and venture capital is actively funding these areas. Major manufacturing and energy corporations are also investing in "green" startups or launching corporate venture arms to seek sustainable solutions. Thus, issues of ecology, social responsibility, and corporate governance continue to influence investment decisions. In 2026, expectations for sustainable development will become an integral part of the strategy for many funds, and startups offering climate innovations can expect stable interest from both dedicated impact funds and multi-sector investors.
The Role of Corporate Investors
A notable trend of the current period is the increased role of corporate venture on the startup scene. Corporations and industry giants are increasingly playing the role of investors or buyers of tech companies. January 2026 was a record month for corporate investments in terms of volume: analysts estimate that the corporate venture arms of global companies participated in deals amounting to over $37 billion in just one month, marking the highest figure in the past two years. Notably, there has been a surge in large rounds: January witnessed a record number of rounds exceeding $100 million involving corporations. Corporations are particularly interested in AI startups (the number of corporate-supported deals in AI has nearly doubled compared to last year) and in robotics/drones. Traditional companies view startups not only for financial returns but also for strategic opportunities — from integrating innovations into their own business to outpacing competitors. We are seeing examples across all sectors: financial institutions are launching venture funds to invest in fintech and blockchain, car manufacturers are acquiring startups in electric vehicles and battery technology, oil and gas giants are investing in renewable energy, and IT corporations are investing in cloud services and cybersecurity (as evidenced by Google’s purchase of Wiz). New players are emerging as well: well-known entrepreneurs and media figures are also entering the venture acquisition game through their companies. For example, in February, it was announced that the media business of famous blogger MrBeast is acquiring the fintech startup Step — a non-trivial example demonstrating that the venture market is attracting a diverse array of investors. Consequently, the integration of traditional business and the startup industry is strengthening. For startups, corporate investors represent not only capital but also access to resources, expertise, and large customer bases. In 2026, further growth of corporate venture is expected: companies are holding substantial cash reserves and are seeking ways to stay at the forefront of technology, thus they will continue to actively invest in promising projects or acquire them.
Conclusion and Outlook. The start of 2026 inspires cautious optimism within the venture community. We are witnessing how significant capital is returning to the market — through mega funds and substantial funding rounds — but investments have become more selective, focusing on breakthrough areas. Investors of all types — from traditional venture funds to corporations and sovereign funds — are currently competing for the best startups, particularly in the fields of artificial intelligence, defence, financial technologies, and sustainable development. The rising activity in the IPO space indicates that successful startups are gaining the long-awaited opportunity to go public, which may inject additional liquidity into the ecosystem. Mergers and acquisitions point to an ongoing restructuring of the industry where the strongest companies are acquiring niche players. Certainly, global risks — economic conditions, regulatory constraints, geopolitical factors — still abound. Nevertheless, the venture market welcomes the new year equipped with lessons from the previous downturn and is ready to finance the next wave of innovations. For venture investors and funds on Wednesday, February 11, 2026, the key takeaway is that the market has regained momentum, capital is once again flowing, and new deals, records, and achievements for startups worldwide await us.
