Startups and Venture Investments February 18, 2026 - AI, Robotics, M&A, and Global Capital Market

Startup and Venture Investment News — Wednesday, February 18, 2026: Mistral AI Acquires Koyeb, Mega Rounds in AI and Acceleration of Robotics Transactions

Venture Capital Market: A Mid-February Overview

Mid-February 2026 is marked by capital concentration in the venture market: large checks in AI and robotics coexist with more cautious financing in "traditional" B2B software. Venture funds remain active, but the demand structure is shifting: investors increasingly prefer projects with proven unit economics, access to infrastructure (computing and data), and clear paths to liquidity through M&A, secondary markets, or IPOs.

• Trend of the Week: Vertical integration in AI (models + cloud + deployment) is becoming a competitive advantage.
• Trend of the Month: Growing consolidation in cybersecurity and infrastructure software.
• Geography: The US retains its lead in the number of deals, Europe strengthens its "sovereign" AI ecosystem, and Asia is more actively utilizing public markets.

Key Narrative: European AI Strengthens Infrastructure Through M&A

The main news in this release is a transaction where the European AI ecosystem bets on control over infrastructure. The acquisition of cloud startup Koyeb by Mistral AI reflects a "full stack" strategy: from model development and training to application deployment and computational resource management. For venture investors, this signals a shift in value towards companies that address the "bottlenecks" in the AI chain: deployment, cost optimization on compute, security, and observability.

1. For Startups: Winning teams are those that sell not just "AI for AI’s sake," but rather focus on reducing cost-to-serve and time-to-value for clients.
2. For Funds: There is an increasing interest in AI infrastructure in Paris, London, Berlin, Stockholm, and regional data centers.
3. For the Market: M&A is becoming a real exit mechanism, particularly in Europe where the IPO window opens more slowly.

Mega Rounds in AI: Capital is Being Concentrated Again

AI remains the largest magnet for venture capital: the market is solidifying a model where "a few winners take the majority of the money." Mega rounds fuel the race for quality models, access to data, contracts with enterprise clients, and computational capabilities. This raises the entry bar in the segment: young companies find it harder to compete "across the board," so they often niche down into specific verticals (legal, finance, industrial, healthcare) or infrastructure layers.

• What is Changing in Term Sheets: More structured rounds (liquidation preferences, earn-outs, milestone triggers), especially for companies lacking stable revenue.
• What is Growing: Demand for "agentic" products and tools that save working hours rather than merely generate content.
• Global Context: In the US, mega checks are forming a new "valuation corridor," which is gradually being reflected in Europe and the Middle East.

Robotics: From Prototypes to Industrial Deployment

In robotics, there is a noticeable shift from demonstrations to commercial deployments. Rounds in the humanoid and industrial automation segments are supported by the fact that clients (logistics, automotive, warehouse infrastructure) are willing to pay for measurable effects — reducing defects, speeding up assembly, ensuring workplace safety. Investors must distinguish between "robots as a show" and "robots as production assets," where key metrics include ownership costs, reliability, and integration speed into processes.

• Focus of Application: Factories and warehouses in the US (Texas, California), as well as pilots in Europe in supply chains.
• New Linkage: Robot + Large Models (LLM/VLM) + Local Navigation – lowers training costs and expands scenarios.
• Risk: Capital intensity of production and lengthy certification/safety cycles.

Cybersecurity: Demand Increasing, Consolidation Accelerating

Cybersecurity remains one of the most "profitable" verticals for startups: the rise in attacks and the proliferation of AI tools are enhancing the value of solutions that cover the entire cycle — from vulnerability detection to remediation and compliance monitoring. Simultaneously, major players continue active M&A, acquiring teams and products to more quickly address platform gaps. On the venture market, companies that do not sell "yet another scanner," but instead provide managed outcomes (risk management, response time, compliance) are winning.

• Financing: Demand for vulnerability solutions and their exploitation supports deals in vulnerability management.
• M&A: Major vendors are strengthening their platforms by acquiring niche startups (identity, posture, cloud security, telemetry).
• Investor Filter: Presence of enterprise contracts, demonstrable reduction in incidents, and clear exit strategy via strategists.

FinTech and Consumer Platforms: A Window of Liquidity is Opening

FinTech at the beginning of 2026 is showing a more vibrant deal market, as some major players are returning to the idea of public listing. For venture funds, this is significant for two reasons: firstly, it provides a benchmark for multiples on the public market; secondly, there is an increasing secondary market for shares in mature companies, allowing early investors to partially realize returns prior to an IPO.

1. What Supports the Sector: Monetization through commission models and B2B products for banks and marketplaces.
2. Geography of Liquidity: The US remains the primary listing venue for international fintechs; Asia is more actively preparing companies for public markets.
3. Risk: Regulatory changes and pressure on margins in payments and lending.

DefenseTech and European Financing: Capital is Pursuing Security and Production

In Europe, there is a growing interest in defense sectors, unmanned systems, and related dual-use technologies. A key driver here is that not only venture funds are entering projects, but development banks, institutional players, and government programs are also participating. This creates mixed financing models (equity + debt) for venture investors, reducing dilution but requiring stricter cash flow and contract discipline.

• Deal Format: Financing in packages where part of the capital is debt tied to production plans.
• Cluster: Germany and Central Europe are strengthening the manufacturing base; demand is rising amid competition in unmanned systems.
• For Startups: Key elements include export potential, localization of production, and compliance with regulatory demands.

Funds and LPs: Bet on Scale and "Fund Architecture"

For venture capital, 2026 is not only about deals but also about fundraising. LPs increasingly prefer large platforms that can invest at different stages and support companies to liquidity. Closing large pools of capital becomes a competitive advantage for the funds themselves: it allows them to support their portfolios in follow-on rounds and participate in "mega deals," where the entry threshold has risen. At the same time, smaller managers feel increased pressure: they need to prove specialization, access to unique deal flow, and discipline in evaluations.

• Shift in Strategy: More "multi-vehicle" models (seed + growth + opportunity) to flexibly support the best assets.
• Consequence: Capital concentration increases competition for top teams, especially in AI, cybersecurity, and robotics.
• Practice: The role of co-investments and secondary transactions is on the rise for managing portfolio risk.

For Venture Investors and Funds

The picture as of February 18, 2026, is clear: venture investments remain active, but the "price of error" has increased. Those who can identify companies with clear advantages in infrastructure, data, distribution, and product economics are the ones benefitting. Below is a practical checklist for working with deal flow in the coming weeks.

1. Reassess Your AI Theories: Evaluate "model," "infrastructure," and "vertical product" separately — the multiples and risks differ across each.
2. Look for M&A Logic Early: In cybersecurity and AI infrastructure, an exit through strategists is often more realistic than an IPO.
3. Check Unit Economics: CAC payback, gross margin, cost of compute, and scalability of support are key KPIs for 2026.
4. Diversify Geography: The US is the source of mega deals, Europe offers infrastructure and regulation-driven demand, and Asia presents liquidity potential and mass platforms.
5. Utilize the Secondary Market: Partial realization and portfolio rebalancing are becoming the norm amid public market volatility.

The main practical signal is this: the market has not "closed" — it has become more professional. Startups that can deliver measurable results and funds that can guide companies through the long cycle to liquidity will prevail.