January 2026 is shaping up as a remarkable start for the global startup ecosystem, with venture capital activity in India, the UK, and Europe signaling renewed investor confidence. Across regions, funding spanned early-stage innovation to late-stage mega-rounds, with a clear focus on AI, fintech, healthtech, climate tech, and industrial solutions.
In India, startups raised $373 million across 40 deals in the third week of January, up from $229 million the previous week. Notable deals included GreenCell Mobility ($89M) for electric bus expansion, Juspay ($50M) in digital payments, and Namdev Finvest ($37M) for inclusive lending. Logistics automation, traveltech, and manufacturing also drew attention, while early-stage AI and climate startups continued to attract investor interest. Cross-border investments, such as Emergent, an India-origin AI startup backed by SoftBank Vision Fund 2 and Khosla Ventures, underscored growing global appetite for Indian-founded innovation.
Across Europe, over €1 billion (~$1.1B) was deployed across diverse sectors, including AI, biotech, fintech, space tech, and sustainability. Early-stage deals emphasized AI infrastructure and biotech breakthroughs, with companies like Sparkli (€5M), Stilla (€5M), and Gutology (€2M) scaling AI-powered education, human-AI collaboration, and microbiome-focused health products. Growth-stage rounds included Exciva (€51M) and Orbem (€55.5M) in biotech and mixed reality, while fintech unicorns Pennylane (€175M) and SaaS leader Mews ($300M) dominated late-stage activity. Strategic investments in space and climate tech, including SWISSto12 (€73M) and PureTerra Ventures (€150M), highlight a trend toward future-proof, impact-focused innovation.
The UK ecosystem mirrored this momentum, raising £200.6M across 15 startups. AI attracted strong capital across the stack, from agent marketplaces (Emergent, £50M Series B) to photonic compute (Optalysys, £23M Series A extension). Fintech investment focused on enterprise-ready, regulated platforms, including Stream (£67M Series D) and TeamFeePay (£9M), while healthtech and biotech startups such as Eolas Medical (£8.9M) and Gutology (£1.8M) scaled clinical AI and microbiome-friendly products. Climate tech also saw measurable impact funding, with Equitable Earth (£10.9M) and LabCycle advancing circular solutions.
Sectoral trends across regions:
AI: Both foundational infrastructure and enterprise applications drove funding, with over 40% of early-stage deals in India and Europe concentrated in AI.
Fintech: Investment prioritized regulated, scalable platforms integrating payroll, lending, and embedded insurance across multiple markets.
Health & Biotech: Capital flowed into AI diagnostics, microbiome products, synthetic biology, and immunotherapy manufacturing.
Climate & Sustainability: From solar infrastructure to space tech and circular economy solutions, investors increasingly focused on measurable, long-term impact.
Investor sentiment: The combined activity suggests a shift from speculative growth to scalable, high-impact startups with international ambitions. Despite macroeconomic uncertainty, deal volumes and sectoral diversity highlight optimism for 2026, with follow-on funding expected for AI hardware, green tech, and cross-border fintech expansion.
Outlook: As January closes, India, the UK, and Europe collectively demonstrate a resilient, diversified, and rapidly scaling startup ecosystem. With AI, fintech, biotech, and climate tech at the forefront, 2026 is poised to be a defining year for global venture capital.
