Startup and Venture Capital News for Monday, 19 January 2026: Mega Funds, Record AI Rounds, IPO Revival, Fintech, Biotech, and Climate Technologies. An Overview of Key Trends for Venture Investors and Funds.
By mid-January 2026, the global venture capital market is demonstrating a steady uptick following previous years' downturns. Major investors are returning to the startup scene with substantial capital inflows, while governments worldwide are intensifying support for innovations. The surge in funding within the artificial intelligence sector continues to break records, with venture rounds reaching unprecedented scales once again. At the same time, the IPO market is reviving: several tech "unicorns" are successfully going public, opening a long-awaited "window of opportunity" for exits. Sectoral focus is also expanding, as investments are flowing into fintech, climate projects, biotech, and even crypto startups. Concurrently, a wave of consolidation is observed, with significant M&A deals reshaping the industry landscape. Below are key trends and events in the venture market as of 19 January 2026:
- The Return of Mega Funds and "Big Money." Leading venture funds are raising record sums, once again flooding the market with capital and stoking appetite for risk.
- Record Funding Rounds in AI and New Unicorns. Unprecedented investments are inflating startup valuations, particularly in the artificial intelligence segment.
- Revival in the IPO Market. Successful public listings of tech companies confirm that the "window" for IPOs remains open and is expanding.
- Diversification of Investments: Fintech, Climate Tech, Biotech. Venture capital is actively branching out into various sectors, reflecting a broad spectrum of growth opportunities beyond just AI.
- Crypto Startup Market Awakens. After a downturn in previous years, the blockchain and cryptocurrency sector is once again attracting substantial investments and planning notable listings.
- Consolidation and M&A Deals. Major mergers, acquisitions, and strategic investments are consolidating market players and creating new pathways for startup exits.
- Government Policy and Regulators. Authorities are simultaneously stimulating innovation and tightening oversight of tech giants, influencing the rules of the game in the venture ecosystem.
- Local Focus: Russia and the CIS. Despite restrictions, new funds and initiatives are emerging in the region to support the growth of local startups.
The Return of Mega Funds: Big Investors Back on the Arena
The largest investment players are triumphantly returning to the venture market, signalling a renewed appetite for risk. At the start of 2026, several top funds have announced record capital raises. For instance, American venture capital firm Andreessen Horowitz (a16z) has raised approximately $15 billion for new funds – an unprecedented amount that accounts for nearly a quarter of last year’s US venture fundraising. At the same time, Middle Eastern sovereign funds continue to inject billions into tech projects, launch mega-projects to develop startup ecosystems (especially in AI and deep tech), and establish regional tech hubs. Overall, venture funds across the globe have amassed substantial reserves of "dry powder" – hundreds of billions of dollars in unallocated capital are waiting for their moment. This influx of "big money" is injecting liquidity into the startup ecosystem, supporting new rounds and driving up valuations of promising companies. The return of mega funds and institutional investors not only intensifies competition for the best deals but also inspires confidence in the market regarding sustained capital inflows to startups.
Record AI Rounds and New Unicorns: The Investment Boom Continues
The artificial intelligence sector remains the key driver of the venture resurgence. Investors are still eager to invest in AI leaders and are willing to support colossal funding rounds. Early in the year, record deals were observed: for example, the developer of a "universal brain" for robots, Skild AI, raised approximately $1.4 billion under the guidance of SoftBank, reaching a valuation of over $14 billion – one of the largest venture deals in recent months. Another example is San Francisco-based startup Higgsfield, specialising in generative video AI, which secured $80 million at a valuation of $1.3 billion just a year after launching its product, instantly becoming a member of the "unicorn" club. Such mega rounds highlight the excitement surrounding AI: venture capital is flowing not only into AI models and applications but also into the infrastructure supporting them (from cloud platforms to specialised chips). By the end of 2025, global investments in startups grew by about 30%, greatly due to mega deals in AI, and 2026 begins with the continuation of this trend. The wave of new "unicorns" continues, although experts warn of the risk of overheating: competition among AI startups is fierce, and only a few of them will ultimately justify such generous valuations.
The IPO Market Comes Alive: "Window of Opportunity" for Startups Expands
The global IPO market is making a confident recovery after a prolonged pause over recent years. Successful public offerings of tech companies in late 2025 and early 2026 reaffirmed that investors are once again willing to buy shares in growing startups. Asia is witnessing a surge in activity: several major Chinese and Asian tech companies have gone public in Hong Kong and Shanghai, raising billions of dollars and reigniting interest in public offerings in the region. The situation is also improving in the US and Europe: a number of "unicorns" have taken the risk of going public, and it has paid off. For example, an American fintech giant successfully debuted on the stock exchange with a stock price increase on the first trading day, boosting confidence in the sector. A whole series of high-profile IPOs is slated for 2026: among the most anticipated are financial service Stripe, AI model developer OpenAI, data software producer Databricks, aerospace company SpaceX, and others. Many of these are preparing for listings in the second half of the year. Investment banks are noting that the window for initial public offerings remains open longer than previously anticipated, and the market is capable of absorbing a wave of new offerings. For the venture ecosystem, this is extremely positive: successful IPOs allow funds to lock in profits, return capital to investors, and redirect funds into new projects. Despite persistent selectivity and caution, the existence of an active IPO window is encouraging more startups to plan their strategies for going public.
Diversification of Investments: Fintech, Climate Projects, Biotech, and Beyond
Venture investments in 2025–2026 are being distributed across an increasingly broad range of industries, making the market less reliant on a single trend. Following the AI spike, investors are once again turning their attention to other segments. First and foremost, there is a revival in fintech: global funding for fintech startups increased by approximately 25–30% in 2025 (though the number of deals decreased), and in the first week of 2026, several fintech companies announced major rounds. For instance, the pan-Asian digital banking platform WeLab secured around $220 million in a Series D round – one of the largest deals in banking fintech in recent times. At the same time, there is growing interest in climate technologies and "green" startups: sustainable development funds and large energy corporations are increasingly investing in renewable energy, energy storage, and climate fintech solutions. The year 2025 marked a record for investments in climate and agri-tech projects, and the trend continues into 2026 against the backdrop of a global focus on ESG and sustainability.
Additionally, after previous downturns, there is a resurgence of appetite for biotechnology and medtech. New drugs, platforms for drug development, and medical services are once again receiving funding. In the US, during the first weeks of January, several biotech startups raised rounds of $50–100 million, and a number of venture firms announced the creation of specialised bio funds totalling nearly $1 billion – a clear sign of returning interest in the sector. Finally, in the context of geopolitical instability, investors are increasing investments in defence technologies and cybersecurity. Startups developing drones, cybersecurity systems, and dual-use products are receiving both government grants and private investments. Thus, the venture market is no longer revolving solely around the theme of AI: it is diversifying, encompassing finance, climate, healthcare, security, and other areas. This makes the entire startup ecosystem more resilient and balanced.
The Crypto Market Awakens: New Investments and Stock Exchange Plans
Another signal of market diversity has been the revival of investments in blockchain and crypto startups. After a prolonged "crypto winter" in 2022–2023, venture activity in this segment is gradually recovering. In the first two weeks of 2026, globally, cryptocurrency and Web3 companies raised approximately $600 million altogether – a figure that inspires cautious optimism (although it is still far from the records of 2021). Interest is being expressed in various directions: from infrastructure for crypto trading and payments to applications in decentralised finance (DeFi) and blockchain games. For example, an American crypto startup in the payments sector recently closed a round of over $50 million, and several digital asset custody projects received venture funding to expand their business.
An important indicator is that mature companies in the industry are preparing for the public market. Cryptocurrency exchange Kraken is reportedly preparing for an IPO in 2026 with a valuation of around $20 billion, which would mark one of the largest debuts in the sector's history. Additionally, plans for the Ethereum infrastructure developer ConsenSys to go public have come to light, which may attract investor attention to the Web3 sector. Even OpenAI, the primary beneficiary of the AI boom, is showing interest in adjacent areas: in January, the company invested in Merge Labs, a startup focused on neuro-computer interfaces (founded by Sam Altman), and entered into a multi-billion-dollar agreement with AI chip manufacturer Cerebras. All this indicates that the crypto and blockchain ecosystem has not faded into obscurity entirely – it is adapting to new conditions, cleansing itself of speculative overheating, and attracting more strategic investors. If regulators in various countries develop clear rules for digital assets, 2026 could be a turning point for more sustainable growth among crypto startups.
Consolidation and M&A: Consolidation of Players and New Exits
Increased valuations of companies and fierce competition are pushing the industry towards a wave of consolidation. Major tech corporations and established startups are actively entering the M&A market, acquiring promising teams and products. The start of 2026 has seen significant growth in mergers and acquisitions deals: just in the first week of January, over 700 M&A deals were announced worldwide, amounting to approximately $39 billion, which is considerably higher than comparable periods in previous years. Several notable examples stand out in the high-tech sector. Accenture announced the acquisition of British AI company Faculty as part of its strategy to enhance its capabilities in artificial intelligence. OpenAI, in addition to external investments, has itself entered the acquisitions market – in January, it acquired the small startup Torch, which is developing AI solutions for medical data, for about $100 million to strengthen its positions in adjacent areas. In cybersecurity, a series of acquisitions has been observed: leading American industry player CrowdStrike arranged to acquire two startups (SGNL and Seraphic) for a total of approximately $1.16 billion in just one week, expanding its product portfolio in access protection and browser security.
Consolidation touches even the largest caliber: within industry circles, potential mega-deals capable of setting new records are being discussed. For instance, there are rumours that several AI companies may become acquisition targets by tech giants if their valuations continue to rise at such rates. For venture funds, the increasing trend of M&A has dual implications. On one hand, strategic deals offer startups an alternative exit path (selling to a larger player) if an IPO is not currently available or profitable. On the other hand, large corporations, by acquiring talent and technology, may further strengthen their market power, raising concerns among regulators. Nevertheless, the wave of mergers and acquisitions indicates the maturity of certain market segments: the most successful projects reach a stage where their acquisition becomes a logical development for the industry. M&A deals are expected to continue growing in number in 2026, particularly in the AI, fintech, and cybersecurity sectors, providing investors with more opportunities for investment exits.
Government Policy: Stimuli for Innovation and Enhanced Oversight
Government initiatives and regulatory decisions are becoming important factors influencing the venture climate. Many states have launched specific support programmes for startups and technologies of the future in 2025–2026. For example, in India, a new phase of the Startup India programme was announced ahead of the initiative's tenth anniversary: it includes an expansion of seed funding and tax incentives for tech companies, which is expected to accelerate the growth of the local startup landscape. In Europe, projects for funding innovations are continuing under the Horizon Europe programme, and government funds are being created to target strategic sectors (AI, microelectronics, "green" energy) to strengthen the region's technological sovereignty. In the Middle East, Gulf governments are investing record amounts into creating entire "startup cities" and tech parks, striving to attract entrepreneurs and venture capital from around the globe.
At the same time, regulators are tightening oversight of the largest market players to avoid monopolisation and unfair competition. In the US, the Federal Trade Commission (FTC) announced at the beginning of 2026 that it will closely examine the practice of so-called "acquihire" deals, where tech giants do not purchase a startup outright but lure its team away, effectively "absorbing" talent without an official merger. Such regulatory steps are aimed at closing loopholes in antitrust legislation and maintaining healthy competition, which, in the long term, is beneficial for both startups and investors. In Europe, antitrust authorities continue investigations against Big Tech, while new laws (such as the Digital Markets Act) are imposing restrictions on the largest platforms, opening more opportunities for young innovative companies. Overall, government policy is currently balancing between two goals: stimulating innovation (through investments, grants, and improving business conditions) and preventing excessive concentration of influence in the hands of a few corporations. This balance will largely determine the rules of the game in the venture space in 2026.
Regional Perspective: Russia and the CIS Search for Growth Paths
In Russia and the CIS, the venture market is experiencing a contradictory period. On one hand, sanctions and economic turbulence have led to a decline in the overall volume of venture investments. Estimates suggest that in 2025, the cumulative volume of investments in Russian tech startups decreased by approximately 10–18%, amounting to around $150 million (about 7–8 billion rubles) for the year, and the number of deals also reduced. Nonetheless, even in these circumstances, encouraging trends have emerged. The primary driver of the local market remains artificial intelligence: AI startups have attracted the lion's share of deals and have been able to engage corporate clients. Private investors and corporations are shifting their focus from rapid growth to sustainability and profitability — in 2025, many deals were associated with companies already generating revenue and capable of operating independently in a challenging environment.
The government is attempting to offset the outflow of foreign capital by creating new funds and support measures. Several initiatives aimed at early-stage investments have been launched: government development institutions and major banks have established funds to invest in AI, import-substituting IT solutions, and industrial technologies. For example, a venture investment fund of several tens of billions of rubles is being formed with the participation of major banks, intended to support promising projects in software and electronics. Accelerators attached to corporations, universities, and tech parks continue to operate, helping startups to develop. Despite the challenging backdrop, new startups are emerging in Russia — especially in fintech (targeted at the domestic market), B2B services for traditional sectors, agricultural tech solutions, and, of course, military/dual-use products, where there is demand from the government. The ecosystem is slowly but surely adapting: many teams are re-registering in friendly jurisdictions to maintain access to global clients and investments while conducting R&D in Russia. Analysts note that further easing of monetary policy (a reduction in the Central Bank's key rate) in 2026 may gradually revive venture activity in the local market. Thus, the region is striving to keep pace: even with minimal external financing, steps are being taken to maintain and grow its startup ecosystem in preparation for more favourable times.
