Startup and Venture Capital News for Monday, January 19, 2026: Mega Funds, Record AI Rounds, IPO Revival, Fintech, Biotech, and Climate Technologies. A Review of Key Trends for Venture Investors and Funds.
As of mid-January 2026, the global venture capital market is showing a steady rise following the downturn of previous years. Major investors are returning to the startup scene with substantial capital volumes, while governments around the world are enhancing their support for innovations. The explosive growth in artificial intelligence funding continues to set records, with venture rounds reaching unprecedented scales. At the same time, the IPO market is reviving: several tech unicorns successfully go public, opening a long-awaited “window of opportunity” for exits. The industry focus is also expanding – in addition to AI, investments are flowing into fintech, climate projects, biotech, and even crypto startups. Meanwhile, a wave of consolidation is observed: major M&A deals are reshaping the industry landscape. Below are the key trends and events in the venture market as of January 19, 2026:
- Return of Mega Funds and Big Money. Leading venture funds are attracting record amounts, refilling the market with capital and reigniting risk appetite.
- Record AI Funding Rounds and New Unicorns. Unprecedented investments are driving startup valuations higher, particularly in the artificial intelligence segment.
- Revival of the IPO Market. Successful public offerings of tech companies confirm that the “window” for IPOs remains open and is expanding.
- Diversification of Investments: Fintech, Climate Technologies, Biotech. Venture capital is actively branching out into various industries beyond just AI, reflecting a broad range of growth opportunities.
- Crypto Startup Market Awakening. Following the downturn of previous years, the blockchain and cryptocurrency sector is once again attracting significant investments and plans for notable offerings.
- 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, impacting the rules of the game in the venture ecosystem.
- Regional Focus: Russia and the CIS. Despite restrictions, new funds and initiatives supporting the growth of local startups are emerging in the region.
Return of Mega Funds: Big Investors Back on the Scene
The largest investment players are making a triumphant return to the venture market, signaling a new growth in risk appetite. At the beginning of 2026, several top funds announced record fundraising. For instance, American Andreessen Horowitz (a16z) raised around $15 billion in new funds—a historic volume that accounts for nearly a quarter of last year's US venture fundraising. At the same time, Middle Eastern sovereign funds continue to invest billions into tech projects, launching mega-projects to develop startup ecosystems (especially in AI and deep tech) and creating regional tech hubs. Overall, venture funds worldwide are sitting on vast reserves of “dry powder”—hundreds of billions of dollars in uninvested capital are waiting for their moment. This influx of “big money” is filling the startup ecosystem with liquidity, supporting new rounds and boosting the 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 the continued influx of capital into startups.
Record AI Rounds and New Unicorns: Investment Boom Continues
The artificial intelligence sector remains the main driver of the venture revival. Investors still seek to invest in AI leaders and are willing to support colossal funding rounds. At the beginning of the year, record deals were reported: for example, Skild AI, a developer of a "universal brain" for robots, raised approximately $1.4 billion led by SoftBank, achieving a valuation exceeding $14 billion—one of the largest venture deals in recent months. Another example is San Francisco startup Higgsfield, specializing in generative video AI, which received $80 million with a valuation of $1.3 billion just a year after launching its product, instantly joining the “unicorn club.” Such mega rounds underscore the excitement surrounding AI: venture capital is flowing not only into AI models and applications but also into the infrastructure for them (from cloud platforms to specialized chips). In 2025, global investments in startups grew by about 30%, largely due to mega deals in AI, while 2026 begins with the continuation of this trend. The wave of new unicorns continues, although experts warn of overheating risks: competition among AI startups is high, and only a few of them will ultimately be able to justify such generous valuations.
IPO Market Revived: “Window of Opportunities” for Startups Expands
The global IPO market is steadily recovering after a long pause in recent years. Successful public offerings of tech companies at the end of 2025 and the beginning of 2026 confirmed that investors are once again ready to buy shares of growing startups. An upsurge in activity is observed in Asia: several major Chinese and Asian tech companies went public in Hong Kong and Shanghai, attracting billions of dollars and reviving interest in IPOs in the region. In the US and Europe, the situation is also improving; several unicorns have risked going public, and it paid off. For instance, an American fintech giant successfully debuted on the stock market with a rise in shares on the first trading day, strengthening confidence in the sector. A series of high-profile IPOs are anticipated for 2026: among the most awaited are financial service Stripe, AI model developer OpenAI, data software producer Databricks, space company SpaceX, and others. Many of them are preparing for offerings in the second half of the year. Investment banks note that the window for IPOs remains open longer than expected, and the market is capable of absorbing a wave of new offerings. This is incredibly positive for the venture ecosystem: successful IPOs allow funds to lock in profits, return capital to investors, and channel funds into new projects. Despite ongoing selectivity and caution, the presence of an operational IPO window encourages more startups to plan their strategies for going public.
Diversification of Investments: Fintech, Climate Projects, Biotech, and More
Venture investments in 2025-2026 are being allocated across an increasingly broad range of industries, making the market less dependent on a single trend. Following the AI boom, investors are once again turning their attention to other segments. Primarily, there is a revival in fintech: global funding for fintech startups grew by approximately 25-30% in 2025 (though the number of deals decreased), and in the first week of 2026, several fintech companies announced large rounds. For example, the pan-Asian digital banking platform WeLab raised about $220 million in a Series D round—one of the largest deals in banking fintech recently. Simultaneously, interest in climate technologies and “green” startups is intensifying: sustainable development funds and major energy corporations are increasingly investing in renewable energy, energy storage, and climate fintech solutions. The year 2025 was a record for investments in climate and agtech projects, and the trend is continuing in 2026 against the backdrop of the global focus on ESG and sustainability.
In addition, after the downturn of recent years, the appetite for biotechnology and medtech is returning. New drugs, drug development platforms, and medical services are once again receiving funding. In the USA, in the first weeks of January, several biotech startups raised rounds of $50-100 million, and a number of venture firms announced the creation of specialized biotech funds totaling nearly $1 billion—a clear sign of renewed interest in the sector. Finally, in the context of geopolitical instability, investors are increasing investments in defense technologies and cybersecurity. Startups creating 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 AI: it is diversifying, encompassing finance, climate, healthcare, security, and other areas. This makes the entire startup ecosystem more resilient and balanced.
Crypto Market Awakening: New Investments and Plans for IPO
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, crypto and Web3 companies globally raised around $600 million in total—a figure that inspires cautious optimism (though it is yet far from the records set in 2021). Interest is manifesting in various directions: from infrastructure for crypto trading and payments to decentralized finance (DeFi) applications and blockchain gaming. For example, an American crypto startup in the payment sector recently closed a round of over $50 million, while several projects focused on digital asset custody received venture funding to expand their business.
An important indicator is that mature companies in the industry are preparing to go public. Reports indicate that the crypto exchange Kraken is 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. Plans for the Ethereum infrastructure developer ConsenSys to go public have also emerged, which could attract investor attention to the Web3 sector. Even OpenAI, the main beneficiary of the AI boom, is showing interest in related fields: the company invested in Merge Labs, a startup working on neuro-computer interfaces (founded by Sam Altman), and struck a multi-billion-dollar agreement with AI chip manufacturer Cerebras. All this indicates that the crypto and blockchain ecosystem has not completely faded into the background; instead, it is adapting to new conditions, shedding speculative overheating, and attracting more strategic investors. If regulators across countries establish clear rules for digital assets, 2026 could become a turning point for more sustainable growth of crypto startups.
Consolidation and M&A: Consolidating Players and New Exits
Rising valuations of companies and high competition are pushing the industry toward a wave of consolidation. Major tech corporations and mature startups are actively entering the M&A market, acquiring promising teams and products. The beginning of 2026 has seen a significant increase in mergers and acquisitions activity; just in the first week of January, over 700 M&A deals were announced worldwide, with a total value of approximately $39 billion, well above similar periods in the previous year. Several notable examples are particularly evident in the high-tech sector. Accenture announced its acquisition of British AI company Faculty as part of its strategy to enhance its capabilities in artificial intelligence. In addition to external investments, OpenAI has also entered the acquisition market—buying a small startup, Torch, which develops AI solutions for medical data for approximately $100 million to strengthen its position in related areas. In cybersecurity, a series of acquisitions are being observed: for instance, US industry leader CrowdStrike agreed to acquire two startups (SGNL and Seraphic) within a week for a combined total of approximately $1.16 billion, expanding its product portfolio in access protection and browser security.
Consolidation is reaching the largest scales: discussions in industry circles revolve around potential mega-deals that could set new records. For example, there are rumors that several AI companies could become acquisition targets for tech giants if their valuations continue to rise at this pace. For venture funds, the growing trend of M&A has a dual significance. On one hand, strategic deals offer startups an alternative exit path (selling to a larger player) if an IPO is currently unavailable or uneconomical. On the other hand, large corporations, by acquiring talent and technologies, could further strengthen their market power, raising concerns among regulators. Nevertheless, the wave of mergers and acquisitions reflects the maturity of specific segments of the market: the most successful projects are reaching a stage where their acquisition becomes a logical progression for the industry. It is expected that in 2026, M&A transactions will continue to grow, especially in the AI, fintech, and cybersecurity sectors, providing investors with more opportunities for exits.
Government Policy: Incentives for Innovation and Increased Oversight
Government initiatives and regulatory decisions are becoming an important factor affecting the venture climate. Many countries launched special programs to support startups and future technologies in 2025-2026. For example, India announced a new phase of the Startup India program as it approaches its tenth anniversary: it is aimed at expanding seed funding and tax benefits for tech companies, which should accelerate the growth of the local startup landscape. In Europe, projects to finance innovations are continuing under the Horizon Europe program, and government funds are being established targeting strategic industries (AI, microelectronics, “green” energy) to strengthen the region's technological sovereignty. In the Middle East, governments of Gulf countries are investing record amounts in creating entire “startup cities” and tech parks, striving to attract entrepreneurs and venture capital from around the globe.
Concurrently, regulators are tightening oversight over the largest market players to prevent monopolization and unfair competition. In the US, the Federal Trade Commission (FTC) announced in early 2026 that it will closely examine practices involving so-called “acquihire” deals, where tech giants do not buy the startup outright but lure away its team, effectively “absorbing” talents without an official merger. Such regulatory steps are aimed at closing loopholes in antitrust legislation and maintaining healthy competition, which in the long run benefits both startups and investors. In Europe, antitrust authorities are continuing investigations against Big Tech, while new laws (Digital Markets Act, etc.) impose restrictions on major platforms, opening up more opportunities for young innovative companies. Overall, government policy currently balances between two goals: stimulating innovation (through investments, grants, and improved business conditions) and preventing excessive concentration of influence in the hands of individual corporations. This balance will largely determine the rules of the game in the venture field in 2026.
Regional Focus: Russia and the CIS Seek Growth Avenues
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. According to estimates, in 2025, the total amount of investments in Russian tech startups decreased by approximately 10-18%, totaling about $150 million (approximately 7-8 billion rubles) for the year, and the number of deals also diminished. Nevertheless, even under these conditions, encouraging trends are emerging. The main driver of the local market remains artificial intelligence: it is AI startups that 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 trying to compensate for the outflow of foreign capital by creating new funds and support measures. Several initiatives aimed at early stages have been launched: state development institutions and major banks have established funds for investments in AI, import-substituting IT solutions, and industrial technologies. For example, with the participation of major banks, a venture investment fund is being formed, amounting to several dozen billion rubles, aimed at supporting promising projects in software and electronics. Accelerators associated with 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 segments (targeting the domestic market), B2B services for traditional sectors, agtech solutions, and, of course, in defense/dual-use sectors, 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 funding, steps are being taken to preserve and grow its own startup ecosystem to be ready for more favorable times.
