Global Startup and Venture Capital News for Wednesday, January 21, 2026: Record-Breaking AI Rounds, IPO Revival, Mega Funds, and Key Investment Trends for Venture Capital Firms and Investors.
The beginning of 2026 on 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 worldwide are once again ready to invest significant funds in promising areas—from artificial intelligence to green technologies. According to recent data, the total volume of venture capital investment grew by approximately 40% year-over-year in the fourth quarter of 2025, marking the best performance since the boom of 2021. This strong upward trend has continued into early 2026: within the first few 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 technology startups, fueling a new investment boom.
At the same time, the market remains more selective and cautious. Funds and investors are focusing on the sustainability of business models and profitability, preferring companies with proven effectiveness. Nevertheless, the current trends in the venture market are encouraging. Below, we examine the key news and trends shaping the venture investment agenda for January 21, 2026.
IPO Market Reawakens: The Window for Exits is Open Again
After nearly two years of dormancy, the long-awaited "window" for initial public offerings (IPOs) of startups is reopening. As early as the end of 2025, several successful public offerings demonstrated the market's readiness to accept new technology companies. For instance, American fintech giant Stripe conducted 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 market, confirming high investor appetite for data and AI sectors. These successful listings have breathed life into the public capital market and laid the groundwork for a new wave of exits.
Signs of IPO revival are evident worldwide. In Asia, Hong Kong has launched a new wave of listings, with several major tech companies going public and collectively raising billions of dollars. In the U.S., the IPO market situation is also rapidly improving. The success of Stripe and Databricks has inspired other "unicorns"—several highly-valued startups are now eyeing IPOs in 2026 while waiting for favorable conditions. Rumors abound about the plans for IPOs by major projects in fintech, artificial intelligence, and biotechnology. Meanwhile, venture funds are actively preparing their portfolio champions for the public market. If the window of opportunity remains open, 2026 could be marked by a string of anticipated startup exits through IPOs.
M&A Wave: The Industry is Consolidating
Against the backdrop of the overall industry recovery, consolidation in the technology sector has intensified. In 2025, the number of major mergers and acquisitions (M&A) involving startups sharply 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 wave of acquisitions spans various segments—from fintech and healthcare to artificial intelligence. For venture investors, such activity signals much-anticipated exits and returns of capital, often quicker and more reliably than waiting for an IPO.
In the first weeks of January alone, several notable deals were announced. For example, Google 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 presence in the new market. It is expected that M&A activity will remain high in 2026: major companies will continue to procure cutting-edge startups at attractive prices, solidifying their dominance and yielding profits for investors.
Mega Funds are Back: Big Money Returns to the Game
The largest venture investors are starting 2026 with record fundraises, signifying 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 the industry's history. Japanese conglomerate SoftBank triumphantly returned by launching the third Vision Fund, with approximately $40 billion aimed at advanced technologies (primarily artificial intelligence and robotics). These megafunds are particularly noteworthy against the backdrop of the general decline in venture fundraising in 2025: the largest players managed to accumulate capital even in difficult conditions, thanks to the confidence of limited partners (LPs).
It is expected that a significant portion of the freshly raised billions will be directed towards the most promising areas. First and foremost are 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 experiencing increased liquidity and competition for the best deals is intensifying, instilling confidence in the industry’s entry into a new growth phase.
The AI Investment Boom Continues: The Industry Sets Records
The field of artificial intelligence remains the main driver of the current venture upswing, demonstrating record funding volumes. The most prominent news in recent days was an unprecedented round in the AI sector: the startup xAI raised around $20 billion in Series E, vividly showcasing the scale of investor appetite. Besides xAI, other companies are also receiving significant amounts. For instance, the Indian project Indra AI closed a round at $500 million with a valuation of $5 billion—one of the largest venture deals in Asia, highlighting the global nature of the AI boom.
Examples like xAI and Indra AI confirm that the investment frenzy surrounding AI is not an isolated occurrence. Across the spectrum of AI projects—from content generation and machine learning to cloud infrastructure and specialized chips—the influx of venture capital remains at a record high. Demand for advanced AI solutions shows no signs of weakening, despite periodic discussions about the industry overheating.
Record Seed Rounds: The Race for Promising Startups
Unprecedented investor activity is also unfolding at the earliest stages. Venture funds are currently in fierce competition for the opportunity 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 at the seed stage, with a valuation around $4.5 billion. Another case is the startup Merge Labs, co-founded by Sam Altman, which secured about $250 million in initial investments (with OpenAI as the lead). These "mega-seeds" vividly demonstrate the willingness of venture players to make massive bets on teams with outstanding experience right from the start—hoping not to miss the next "unicorn."
Defense and Strategic Technologies in Investors' Focus
Technologies in the defense and national security sectors have rapidly come to the forefront of venture capitalists' attention. In the U.S., there is a focus on maintaining technological superiority: major funds, including the new American Dynamism Fund from a16z, are directing significant resources into dual-use startups—defense, aerospace, cybersecurity, and related areas. Similar trends are evident in Europe: the German firm DTCP is forming the largest venture fund in Europe for defense technologies with an approximate volume of €500 million, with initial anchor investors already joining this initiative. As a result, new "unicorns" are emerging in the sector: the French startup Harmattan AI, which creates AI solutions for defense, recently reached a valuation exceeding $1 billion.
Global competition among powers is fueling interest in startups capable of strengthening national security. Moreover, venture capital is increasingly collaborating directly with industrial giants in the defense sector. An 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 will definitively secure their place among the priority directions of the venture market.
Biotechnology and Medicine Draw Capital Again
After a decline last year, the biotechnology and medical startup sectors are once again attracting the attention of venture investors. In the first weeks of 2026, several specialized funds aimed at biomedical innovations were announced:
- Bio & Health Fund (USA) – a new fund by Andreessen Horowitz with a volume of $700 million, allocated specifically for investments in American biotech startups (drug development, medical technologies, AI applications in biology).
- Servier Ventures (Europe) – a corporate venture fund by the French pharmaceutical group Servier with a volume of €200 million for financing European startups in oncology and neurology.
The influx of capital demonstrates sustained investor interest in biotech and medicine, despite the challenges of recent years. After a period during which valuations of many biotech companies declined, the market is revitalizing thanks to scientific breakthroughs and increased attention to health. Large pharmaceutical players are actively enhancing cooperation with startups through venture divisions and partnerships, anticipating long-term returns from promising drugs and technologies.
Diversification of Investments: Fintech, Crypto, and Green Technologies
Venture activity in 2026 encompasses an increasingly broad range of sectors beyond AI. After falling valuations in recent years, interest in fintech startups is again growing. Major players in financial technology have adapted to new conditions, focusing on profitability and efficiency, which has restored investor confidence. We are already witnessing a revival of deals in the areas of digital payments, online banking, and InsurTech—primarily for companies that have proven the resilience of their business models, especially in developing markets where fintech potential remains high. Simultaneously, the blockchain project market is beginning to emerge from the "crypto winter": Bitcoin's rally to new highs and the stabilization of the digital asset sector have led funds to once again consider investing in chosen crypto startups. Attention is particularly directed towards projects with more mature solutions in DeFi and Web3. While caution remains, the gradually returning confidence opens new funding opportunities for such startups.
Increased investor attention is also observed in climate technologies. "Green" startups are receiving record funding amidst the global push for sustainable development and economic decarbonization. Venture funds are actively supporting projects in renewable energy, carbon emission reduction, and the creation of eco-friendly infrastructure. The Climate Tech sector today is one of the fastest-growing: in addition to profit, investors are also considering ESG factors, aiming to contribute to solving environmental problems. It is expected that in 2026, this field will see new unicorns emerge, and interest in "green" innovations will remain 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 has now shifted to the quality of businesses: the sustainability of models and the quicker path to profitability for startups. The era of growth "at any cost" is behind us—discipline and effective capital utilization have taken its place. Many funds are selecting projects more carefully and weighing companies thoroughly before investing.
At the same time, a window for IPOs, effectively closed during 2022-2024, is gradually reopening. Successful listings at the end of 2025 and the accumulated pool of mature unicorns create a foundation for a new wave of public offerings, should market conditions remain favorable. The M&A market is also revitalizing: large corporations with accessible capital are prepared to acquire promising startups at more reasonable prices, providing funds with the long-awaited exits. Thus, 2026 promises the industry new challenges and opportunities. Overall, the venture investment industry greets 2026 with cautious faith in further growth—the first weeks have already confirmed the market's readiness for a new developmental stage.
