Global Startup and Venture Capital News for Wednesday, 21 January 2026: Record AI Rounds, Reviving IPOs, Mega Funds, and Key Investment Trends for Venture Funds and Investors.
Beginning of 2026 is marked by confident growth and a surge of activity in the global venture capital market, particularly in the technology sector. After a prolonged downturn in recent years, investors worldwide are once again willing to invest significant amounts in promising areas ranging from artificial intelligence to green technologies. According to recent data, the total volume of venture investments grew by approximately 40% year-on-year in the fourth quarter of 2025, marking the best performance since the boom of 2021. This confident upward trend continued into early 2026: in just the first weeks of January, startups globally raised 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 rapidly returning to tech startups, fueling a new investment boom.
At the same time, the market maintains a more selective and cautious approach. Funds and investors emphasize the sustainability of business models and profitability, preferring companies with proven effectiveness. Nevertheless, current trends in the venture market are encouraging. Below, we will examine the key news and trends shaping the venture investment landscape as of 21 January 2026.
IPO Market Revives: Exit Window Reopens
After nearly two years of dormancy, the long-awaited "window" for initial public offerings (IPOs) is once again opening for startups. In late 2025, several successful public listings were conducted, demonstrating the market's readiness to accept new tech companies. For instance, American fintech giant Stripe executed one of the largest IPOs of the decade, with a valuation of around $100 billion, while data software developer Databricks made a confident debut on the stock exchange, confirming high investor appetite for data and AI sectors. These successful listings have injected 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, collectively raising billions of dollars. The IPO market situation in the US is also rapidly improving. The successes of Stripe and Databricks have inspired other "unicorns," with several highly valued startups now eyeing IPOs in 2026, waiting for favorable conditions. Rumors of plans for public offerings from a number of significant projects in fintech, artificial intelligence, and biotechnology are circulating. Meanwhile, venture funds are actively preparing their portfolio champions for the public market. If the window of opportunity remains open, 2026 could mark a series of long-awaited startup exits through IPOs.
M&A Wave: Industry Consolidation Intensifies
Against the backdrop of general industry growth, consolidation in the tech sector has also intensified. In 2025, the number of significant mergers and acquisitions (M&A) involving startups sharply increased, reaching a decade high. This trend has continued into early 2026: tech giants with ample cash reserves are actively acquiring promising companies to accelerate innovation and expand their product lines. This wave of acquisitions spans various segments, from fintech and healthcare to artificial intelligence. For venture investors, such activity signals anticipated exits and returns on capital, often quicker and more reliably than waiting for IPOs.
In the first weeks of January, several notable deals have already been announced. For example, Google has agreed to acquire AI chip developer PolyCore for approximately $2 billion to bolster its cloud business. Additionally, an American software developer announced its acquisition of a European AI startup, strengthening its foothold in a new market. It is expected that in 2026, M&A activity will remain high, with large companies continuing to acquire leading startups at attractive prices, consolidating their dominance and yielding profits for investors.
Mega Funds Make a Comeback: Big Money Returns
The largest venture investors are starting 2026 with record fundraising, marking the return of "big money" to the market. American giant Andreessen Horowitz (a16z) announced the raising of over $15 billion in new capital distributed across several funds—this is a record amount for the firm and one of the largest in industry history. The Japanese conglomerate SoftBank has triumphantly returned, launching its third Vision Fund with approximately $40 billion, targeting advanced technologies (primarily artificial intelligence and robotics). These mega funds are particularly noteworthy against the backdrop of a general decline in venture fundraising in 2025: the largest players managed to accumulate capital even in challenging conditions due to the trust of limited partners (LPs).
It is expected that a significant portion of the newly raised billions will be directed towards the most promising areas. Above all, this includes AI startups, as well as projects related to national security, climate innovations, and new infrastructure. The influx of "big money" is already noticeable: the market is becoming liquid, and competition for the best deals is intensifying, instilling confidence in the industry for a new phase of growth.
AI Investment Boom Continues: Industry Breaks Records
The artificial intelligence sector remains the primary driver of the current venture boom, demonstrating record funding levels. One of the most significant recent developments was an unprecedented round in the AI space: the startup xAI raised around $20 billion in Series E, vividly illustrating the scale of investor appetite. In addition to xAI, other companies are also securing impressive sums. For example, the Indian venture Indra AI closed a round of $500 million at a valuation of $5 billion—one of the largest venture deals in Asia, emphasizing the global nature of the AI boom.
Examples like xAI and Indra AI affirm that the investment frenzy surrounding AI is not an isolated phenomenon. Across the entire spectrum of AI projects—from content generation and machine learning to cloud infrastructure and specialized chips—the influx of venture capital remains at historically high levels. The demand for advanced AI solutions shows no signs of weakening, despite occasional discussions of industry overheating.
Record Seed Rounds: The Race for Promising Startups
Unprecedented activity from investors is also unfolding at the earliest stages. Venture funds are currently competing fiercely 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 approximately $480 million in a seed stage at a valuation of around $4.5 billion. Another case is Merge Labs, founded by Sam Altman, which secured about $250 million in initial investments (led by OpenAI). These "mega-seeds" vividly demonstrate the willingness of venture players to make significant bets on outstanding teams right from the start—hoping not to miss the next "unicorn."
Defense and Strategic Technologies in Focus for Investors
Technologies in the defense and national security sectors have rapidly come to the forefront of venture capitalists' attention. The US is taking steps to maintain technological superiority: major funds, including the new American Dynamism Fund from a16z, are directing substantial resources into dual-use startups—defense, aerospace, cybersecurity, and related fields. Similar trends are observed in Europe: the German firm DTCP is forming the largest venture fund in Europe for defense technologies, with a target of around €500 million, and initial anchor investors have already joined this initiative. As a result, new "unicorns" are emerging in the sector: the French startup Harmattan AI, which creates AI solutions for defense, recently achieved a valuation of over $1 billion.
Global rivalry among nations is fueling interest in startups capable of strengthening national security. Venture capital is increasingly collaborating directly with industrial giants in the defense sector. For instance, American aerospace startup JetZero raised $175 million from a group of investors led by B Capital and Northrop Grumman. This deal illustrates how defense corporations are directly investing in innovations aligned with their strategic interests. In 2026, defense technologies are firmly establishing themselves among the priority areas of the venture market.
Biotechnology and Medicine Draw Capital Again
Following last year's downturn, the biotechnology and medical startup sector is once again attracting the attention of venture investors. In the early weeks of 2026, several specialized funds targeting biomedical innovations were announced:
- Bio & Health Fund (USA) – a new $700 million fund from Andreessen Horowitz specifically designated for investments in American biotech startups (drug development, medical technology, AI applications in biology).
- Servier Ventures (Europe) – a corporate venture fund from the French pharmaceutical group Servier with a volume 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. After a period when the valuations of many biotech companies declined, the market is invigorating due to scientific breakthroughs and increased attention to health. Major pharmaceutical players have intensified collaboration with startups through venture units and partnerships, betting on the long-term returns from promising drugs and technologies.
Investment Diversification: Fintech, Crypto, and Green Technologies
Venture activity in 2026 is covering an increasingly broad range of industries beyond AI. Following a decline in valuations in recent years, interest in fintech startups is intensifying once again. Leading fintech players have adapted to new conditions, focusing on profitability and efficiency, which has restored investor confidence. There is already a revival in deals within digital payments, online banking, and InsurTech—primarily for companies that have demonstrated the resilience of their business models, as well as in emerging markets where fintech potential remains high. Concurrently, the blockchain market is showing signs of emerging from the "crypto winter": the Bitcoin rally to new highs and the stabilization of the digital asset sector have led funds to resume investments in selected crypto startups. Attention is primarily drawn to projects with more mature solutions in DeFi and Web3. While caution persists, the gradually returning confidence is opening new funding opportunities for such startups.
Elevated investor attention is also seen in climate technologies. "Green" startups are securing record funding amid the global push for sustainable development and decarbonization of the economy. Venture funds are actively backing projects in renewable energy, carbon emission reduction, and eco-friendly infrastructure creation. The Climate Tech sector is now one of the most dynamically developing: besides profits, investors are considering ESG factors, aiming to contribute to solving ecological problems. New unicorns are expected to emerge in this area in 2026, 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 adjusting to the new reality. Quality of business is now at the forefront: sustainability of models and quicker paths to profitability for startups are prime concerns. The era of "growth at any cost" is behind us—replaced by discipline and effective capital utilization. Many funds are more meticulously selecting projects and carefully evaluating companies before investments.
Simultaneously, the window for IPOs, effectively closed during 2022–2024, is gradually opening. Successful listings from late 2025 and a growing pool of mature unicorns are creating a foundation for a new wave of public offerings under favorable conditions. The M&A market is also reviving: large corporations with accessible capital are prepared to acquire promising startups at more reasonable prices, providing funds with anticipated exits. Thus, 2026 promises the industry new challenges and opportunities. Overall, the venture capital industry greets 2026 with cautious faith in continued growth—the first weeks have already confirmed the market's readiness for a new stage of development.
