Venture capital activity picked up across India, the UK, and Europe during the third week of January, signalling early signs of recovery after a subdued start to 2026. While investor caution remains, a mix of mid-to-large deals across AI, biotech, SaaS, fintech, and climate tech helped lift total funding volumes across regions.
India: VC Inflows Rebound After Slow Start
Indian startups raised $229 million across 25 deals, a sharp rise from $77 million in the previous week. Funding activity spanned all stages, with Series A ($71 million) and Series B ($69 million) leading in value, while pre-Series A rounds dominated deal count with 14 transactions.
Key deals included Pee Safe ($32M), Sukino ($31M), Emversity ($30M), Wint Wealth (~$27.5M), and Liquidnitro Games ($19.1M). Healthcare, edtech, fintech, gaming, and cybersecurity emerged as the most active sectors.
Despite the weekly uptick, overall fundraising in India remains below historical averages, with investors continuing to prioritise capital efficiency and clear revenue visibility.
UK: AI, Biotech and SaaS Drive £2.1bn Week
UK startups recorded a strong week, raising £2.13 billion between January 12–16, led by large AI infrastructure and biotech rounds. Investor interest focused on AI compute, lab-AI platforms, vertical SaaS, and deep tech.
Notable transactions included Nscale’s reported £2bn raise talks for AI data centres, bit.bio’s £40m Series C, Nuclera (£8.91m), Trybe (£23m), and Midnite (~£26m Series C). Early-stage activity also remained healthy, particularly in compliance tech, sustainability software, and AI tooling.
The UK continued to show strength in capital-intensive and science-led ventures, supported by institutional investors and long-term capital.
Europe: Funding Flows Into AI, WaterTech and Climate Solutions
Across Europe, funding momentum remained steady, with startups raising capital in AI, climate tech, water infrastructure, and enterprise SaaS. Significant rounds included PureTerra Ventures’ €150m WaterTech fund, Hydrosat (€51m), Optics11 (€25m EIB loan), and Parloa’s $350m Series D, reinforcing Europe’s growing presence in deep tech and sustainability-driven innovation.
Early-stage funding remained active across Germany, the Netherlands, and the Nordics, particularly in AI-enabled enterprise platforms and climate resilience technologies.
Big Picture
While 2026 has begun cautiously, the third week of January suggests capital is selectively returning across geographies. Investors are backing infrastructure, applied AI, healthcare platforms, and vertical SaaS, favouring companies with scalable models and clear commercial pathways.
If deal momentum sustains over the next few weeks, it could mark a gradual stabilisation phase for the global startup ecosystem.
