Startup and Venture Investment News for Thursday, February 5, 2026: Key Deals, Growth in AI and Deeptech Investments, Venture Fund Strategies, and Global Startup Market Trends.
By early February 2026, the global venture capital market continues to show a robust recovery following the downturn of recent years. Preliminary estimates suggest that 2025 was the third most successful year in history for startup investment (following the peaks of 2021 and 2022), indicating the return of substantial private capital to the technology market. Investors worldwide are once again actively funding promising companies, with record-scale deals being executed, and startup plans for IPOs returning to the agenda. Major venture funds are launching new mega rounds and strategies, while governments and sovereign funds are ramping up support for innovation, eager not to fall behind in the global tech race. As a result, the positive dynamics of the venture market instill cautious optimism for 2026, although investors remain selective regarding valuations and business models.
Return of Mega Funds and Record Investments
After a period of silence, "mega-funds" have returned to the market – massive capital pools for technology investments. The American flagship Andreessen Horowitz (a16z) raised over $15 billion in new funds, increasing its assets under management to a record $90 billion. These funds are directed towards priority areas such as artificial intelligence, cryptocurrencies, defense technologies, and biotech. Simultaneously, Japanese SoftBank has strengthened its presence in the AI sector: at the end of 2025, SoftBank invested $22.5 billion in OpenAI, marking one of the largest single investments in startup history. The resurgence of such players confirms the trend of capital concentration among industry leaders and the desire of investors to secure a stake in the next technological breakthrough.
AI Startup Boom: Unprecedented Funding Rounds
The artificial intelligence sector remains the main driver of the venture boom. AI startups are attracting unprecedented investments, setting new records for round sizes. For instance, Elon Musk's project xAI secured around $20 billion in funding with participation from Nvidia – an extraordinary amount for a private company. OpenAI, the market leader in AI, not only attracts capital but also engages in strategic deals: the company secured exclusive supply agreements for high-performance Cerebras chips worth over $10 billion to accelerate its models, bolstering its technological edge. Alongside industry giants, new entrants are rapidly emerging: in the US, generative video startups (e.g., Higgsfield) and voice AI companies (Deepgram, among others) have achieved 'unicorn' status within just a few years of founding. In Europe, the German company Parloa attracted $350 million with a valuation of $3 billion, confirming the global nature of the AI frenzy. The massive funds directed towards AI reflect an intense race among companies and countries for leadership in this field and create new market imbalances as a significant share of venture dollars flows toward AI projects.
Major Exits in Fintech and a Wave of Mergers
The fintech sector is experiencing a wave of consolidation, signaling the maturation of the fintech market. Several high-profile deals were announced in January 2026. Capital One Bank agreed to acquire startup Brex – a platform for managing corporate expenses – for $5.15 billion. This acquisition marks the largest bank-fintech deal in history, highlighting the desire of traditional financial giants to integrate advanced fintech solutions. European venture fund Hg purchased the American financial platform OneStream for about $6.4 billion, buying out shares from investors, including KKR. Other announcements include Deutsche Börse acquiring the platform Allfunds for €5.3 billion to enhance its position in WealthTech, and US Bancorp acquiring the brokerage firm BTIG for up to $1 billion. Alongside major acquisitions, several fintech startups have themselves entered the acquisition market: for instance, Australian unicorn Airwallex is expanding in Asia by acquiring Korean payment company Paynuri. The uptick in M&A activity demonstrates that as the industry matures, successful fintechs either fall under the wing of larger players or grow through strategic acquisitions.
Revival of IPOs: Startups Returning to the Public Market
The initial public offering (IPO) market for technology companies is reviving after a prolonged hiatus. The year 2025 surprised analysts with the number of high-profile market entries: in the US alone, no fewer than 23 companies conducted IPOs with valuations exceeding $1 billion (up from 9 the previous year), with the total capitalization of these listings surpassing $125 billion. Investors are once again ready to welcome profitable, fast-growing companies to public markets, particularly those with a clear narrative around AI or other "hot" technologies. In 2026, this trend is expected to continue, with several ‘unicorns’ openly hinting at preparations for IPOs. Among the most anticipated candidates for public offerings are:
- Major fintech 'unicorns': payment platforms Plaid and Revolut;
- Leaders in artificial intelligence: AI model developer OpenAI, big data platform Databricks, business AI startup Cohere;
- Other tech giants: for instance, space company SpaceX, if market conditions are favorable.
Successful debuts of these companies could provide additional momentum for the market, although experts caution that market volatility could abruptly close the "IPO window." Nevertheless, the revival of public offerings strengthens the belief that investors are willing to reward startups with strong growth and profitability metrics.
Defense and Cyber Startups in the Spotlight
The geopolitical situation and new risks are reshaping the priorities of venture investors. Amid rising tensions between nations and the drive for technological independence, significant capital is being directed toward defense and cybersecurity startups. In the US, the "American Dynamism" trend is gaining traction – investments in technologies that strengthen national security. Notably, a16z's mega round includes funds destined for defense and deep tech startups. Startups developing solutions for the military and government institutions are attracting nine-figure sums: California-based Onebrief, which creates software for military planning, recently raised about $200 million in investments at a valuation exceeding $2 billion and acquired a related startup to enhance its platform capabilities. In Europe, the fastest-growing cybersecurity startup Aikido Security from Belgium has reached 'unicorn' status ($1 billion) just two years into its development, offering a comprehensive code and cloud protection platform. Such successes reflect the growing demand for technologies that ensure digital and national security – from supply chain protection (e.g., British Cyb3r Operations, which raised $5 million to monitor cyber risks) to new means of reconnaissance and satellite surveillance. The trend towards increased support for defense projects is also evident at the government level: governments and funds, particularly in the US, Europe, and Israel, are eager to invest in startups capable of providing a strategic advantage.
Regional Highlights: US Leads, Europe and Asia Catching Up
Geographically, the venture boom is global in nature but distributed unevenly. The primary driver remains the US – American projects account for the lion's share of large rounds, particularly in the AI sector. Silicon Valley continues to hold its status as the main capital attraction center, although competition for talent and deals is increasing globally. In Europe, the landscape is undergoing a transformation: continental economies are ramping up venture investments. By the end of 2025, Germany outpaced the UK in startup investment volume, indicating the strengthening of European hubs. Regional EU funds and government programs (such as initiatives in France and Scandinavian countries) are stimulating the creation of local unicorns and the development of the artificial intelligence sector. In Asia, dynamics are mixed: the Indian ecosystem has reached a new level of maturity – January saw the first 'unicorns' of 2026 emerge and high-profile IPOs resumed on local exchanges, reflecting the scale and maturity of the market. Conversely, the Chinese venture market remains relatively restrained due to regulatory pressures and a reallocation of capital toward domestic priorities; nonetheless, Chinese investors are actively investing in foreign AI and chip projects to stay competitive. The Middle East and North Africa show acceleration: funds from the UAE, Saudi Arabia, and Qatar are increasing investments in technology companies both regionally and globally, supporting fintech, cloud services, and AI startups. Startup activity is also rising in Latin America and Africa, although in absolute figures these regions still lag behind the rest of the world. Thus, the venture upswing indeed spans all continents, forming a more balanced global innovation ecosystem.
Looking Ahead: Cautious Optimism and New Milestones
Despite the current uptrend, investors remain somewhat cautious, remembering the lessons from the recent market "cooling." Capital is once again flowing into the technology sector, but demands on startups have tightened: funds expect clear business models, economic efficiency, and understandable paths to profitability. Company valuations are increasing, particularly in the AI segment, but investors are increasingly focusing on risk diversification and the long-term sustainability of portfolios. The returning liquidity – from billion-dollar funds to new IPOs – creates opportunities for substantial growth but also raises competition for outstanding projects. Likely, in 2026, the venture capital industry will enter a phase of more balanced development: funding for "breakthrough" areas (AI, biotechnology, climate tech, defense) will continue, but there will be increased attention to quality growth, corporate governance, and compliance with regulatory requirements. This approach should help the market avoid overheating and lay the groundwork for sustainable innovation development in the long term.
