Startup and Venture Capital News as of February 28, 2026: Mega-Rounds in AI Chips, IPO and SPAC Resurgence, M&A Deals, Secondary Market Trends, and Insights for Global Venture Funds.
The end of the week has solidified two key trends shaping the agenda for venture investors and LPs in 2026. Firstly, capital continues to be concentrated in artificial intelligence infrastructure—primarily in AI chips, cloud inference infrastructure, and corporate platforms that assist businesses in reducing computational costs and accelerating model deployment. Secondly, the liquidity market is reviving: a portion of mature companies is returning to public offerings, while alternative routes—such as SPACs and secondary transactions—are once again being discussed as viable portfolio management tools.
For venture funds, this means intensified competition for "quality" rounds (Series B–D), increased demands on term sheets (liquidation preferences, anti-dilution provisions, option structures), and the necessity for stricter disciplines in valuation and unit economics—particularly in segments where revenue relies on computational costs and data access.
United States: AI Hardware and Corporate Platforms Driving Mega-Rounds
In the U.S., venture investments continue to revolve around two main draw factors: (1) developers of AI accelerators and inference systems, and (2) companies building "lanes" for AI integration in corporations—from orchestration to security. Recent deals confirm that investors are willing to pay a premium for teams capable of offering alternatives to dominant suppliers and reducing TCO for large clients.
- AI Chips and Accelerators: Significant Series B and later rounds signal the market's readiness to fund capital-intensive roadmaps when there is a likelihood of occupying a niche in inference and corporate clusters.
- Partnerships as Part of the Round: Increasingly, financing accompanies strategic agreements with major tech players, reducing go-to-market risk and enhancing revenue quality.
- Valuation and Expectations: Investors demand a more transparent gross margin model, a detailed supply chain plan, and confirmed demand (LOIs, pilots, initial contracts) before agreeing to a "premium" valuation.
Bio and MedTech: IPOs as a Test of Appetite for Venture Narratives
Biotech and AI medical platforms are back in the spotlight as the public market begins selectively accepting "venture" stories—especially where there is clinical progress and a clear monetization roadmap. For venture investors, this is an important indicator: the IPO window may not become broadly open but can be accessed "selectively"—for companies with strong science, defensible technology, and a clear regulatory track.
- Liquidity Signal: Successful public offerings increase the attractiveness of late-round investments and may spur growth in the secondary market for shares in mature companies.
- Term Sheet and Round Structure: Funds increasingly offer hybrid structures (primary + secondary) to balance risk and allow early investors and employees to partially realize profits.
- Valuation: Multiples are becoming more "punitive" for projects lacking clinical/commercial milestones—disciplining the market and reducing the share of "marketing" rounds.
Europe: More Selective Venture Investments with a Focus on DeepTech
The European startup market maintains a high deal pace, but selectivity has notably increased. The focus is on deeptech (quantum technologies, cybersecurity, industrial AI), climate solutions, and applied corporate products. For funds, this presents a mix of opportunities and constraints: on one hand, strong engineering schools and grant ecosystems; on the other, the necessity to build a global go-to-market strategy to maintain high valuations in later rounds.
- Quantum Companies: Discussions about going public via SPAC are raising questions about revenue maturity and investor readiness to accept technological risk in exchange for long-term potential.
- Series A–C Rounds: More stringent governance, KPI, and investor rights are appearing in term sheets, especially if startups require funding for 18–24 months.
- Cross-Border Strategy: Companies are enhancing their presence in the U.S. and Asia to expand their client pool and support valuations in the next round.
Asia and the Middle East: Sovereign Capital and "Infrastructure" Bets
In Asia, the rising interest in AI infrastructure is complemented by government and quasi-government programs, along with the involvement of major corporations as strategic investors. In the Middle East, sovereign funds and corporate groups continue to act as anchor LPs and co-investors in late-stage rounds, favoring deals with a clear regional role in the value chain (data centers, computing energy, industrial platforms).
For global venture funds, this indicates a more complex landscape: access to capital is increasing, but compliance, deal structure, and rights distribution over technologies and data are becoming more demanding.
M&A and Secondary Markets: A "Quiet" Liquidity Restart
Alongside selective IPOs, the market is increasingly reverting to M&A as an operational exit mechanism. For strategists, the key motivation is to accelerate product plans in AI and cybersecurity, as well as to acquire teams with hard-to-hire competencies. Concurrently, the secondary market for shares is expanding: funds and employees are more frequently considering partial sales during late rounds to reduce personal risk and "unfreeze" capital without awaiting a full exit.
- Corporate Buyers: Showing more interest in teams and technology modules rather than full businesses, influencing deal structure and valuation.
- Secondaries: Becoming a standard option in large rounds, especially when valuations are high and there is demand from new investors.
- Valuation: For M&A, the quality of revenue and synergies is more crucial than "venture storytelling," leading to stricter due diligence.
Investor Practice: How to Read a Term Sheet and Avoid Overpaying for Valuation
Amid capital concentration and growing competition for the best deals, funds and LPs would benefit from maintaining a checklist to help distinguish resilient stories from overheated ones. This is particularly relevant in the AI segment, where computational costs and data access directly impact margins.
- Check the Economics of Computation: How does the cost of inference change with increased volume, and is there an optimization strategy (model, hardware, caching, quantization)?
- Demand and Contracts: Are there commercial KPIs, not just pilots; how are termination and expansion conditions structured?
- Governance: Board rights, protective provisions, budget control, approval processes for M&A.
- Liquidity: Secondary sale options, triggers for IPO/SPAC, restrictions on share transfers.
- Anti-Dilution: Type (full ratchet vs. weighted average), thresholds, implications for future rounds.
Implications of Today's Agenda for Startups and Venture Funds
Saturday, February 28, 2026, marks a market pivot towards "pragmatic growth": venture investments are still ready to finance significant bets in AI and deeptech, but demand more stringent evidence of demand and a realistic liquidity exit plan. Startup teams should prepare for more detailed due diligence and proactively consider the structure of their rounds—including the secondary component, option programs, and transparent economic models. For venture funds, the key task is to maintain valuation discipline, carefully build portfolios across stages, and utilize a combination of IPOs, M&A, and secondaries as tools for risk and return management.
