Top Startup and Tech Funding News – February 18, 2025

It’s Wednesday, February 18, 2026, and we’re back with today’s top startup and tech funding news. Today’s rounds spotlight intensifying investor focus on spatial AI, fusion energy, AI chip co-design, and fintech infrastructure for workplace savings. As capital continues to flow into platforms that enable the next era of intelligence and electrification, strategic and venture investors are betting on deep-tech foundations with long-term defensibility.

Significant Series A and B financings show investor conviction in next-generation grid technologies, model observability, and software-defined energy infrastructure. Meanwhile, global leaders in used cars, space communications, and Alzheimer’s therapies are drawing renewed support to scale proven platforms. Today’s deals span AI, energy, climate, biosciences, and next-gen fintech—and signal a broad push toward systems that reshape physical and digital environments at scale.

Tech Funding News

Funding Highlights

• World Labs raises $1B Series C to build spatial AI world models
• Inertia raises $450M Series A to develop fusion laser energy systems
• Vestwell raises $385M Series E to expand workplace savings platform
• Ricursive Intelligence raises $300M Series A for AI-driven chip design
• Kavak raises $300M Series E to scale used car platform in LatAm
• Korsana Biosciences raises $175M Series A to advance Alzheimer’s therapy
• Heron Power raises $140M Series B to build data center transformer tech
• Northwood Space raises $100M Series B for satellite ground station rollout
• Braintrust raises $80M Series B to monitor AI system reliability
• Novig raises $75M Series B to scale zero-fee sports betting marketplace

Investor Activity

Today’s funding drew deep participation from top-tier VCs and strategic corporates backing core infrastructure for AI, energy, and financial automation. Andreessen Horowitz, Lightspeed, and Sequoia were active across AI systems, chip design, and global marketplaces, while Nvidia, AMD, and Autodesk backed foundational platforms for spatial computing. Blue Owl, Sixth Street, and Iconiq Growth concentrated on enterprise fintech and AI observability, as Breakthrough Energy and Capricorn targeted grid modernization and electrification. Across sectors, capital is consolidating around platforms with defensible tech stacks and long-term infrastructure value.

World Labs raises $1B in Series C funding for spatial AI platform

Prominent AI pioneer Fei-Fei Li’s startup, World Labs, has secured a massive $1 billion Series C round to accelerate the development of its spatial intelligence platform. The Palo Alto-based company is building “world model” AI systems that understand and generate 3D environments, moving beyond today’s 2D image and text-based AI. The new funding – which comes just 16 months after World Labs’ launch – will fuel research into Li’s vision of AI that can reason about the physical world for applications in robotics, augmented reality, and more.

This mega-round drew support from both tech and investment heavyweights. Autodesk contributed $200 million and is partnering with World Labs to integrate its AI with design software, underscoring industrial interest in spatial AI. Major chipmakers AMD and Nvidia also invested, a sign of confidence that World Labs’ computational demands will drive future hardware needs. With backing as well from Andreessen Horowitz, Emerson Collective, Fidelity, and Sea Ltd., World Labs is now positioned among the best-funded AI startups, aiming to turn Fei-Fei Li’s “godmother of AI” expertise into a new class of AI that perceives and interacts with the 3D world.

• Startup: World Labs (Palo Alto, CA – AI “world models” for 3D spatial intelligence)

• Investors: Autodesk (lead, $200M), Nvidia, AMD, Andreessen Horowitz, Emerson Collective, Fidelity, Sea, and others

• Amount Raised: $1.0 billion

• Total Raised: $1.23 billion (since inception in 2024)

• Funding Stage: Series C

• Funding Date: February 18, 2026

Inertia raises $450M in Series A funding to build fusion energy laser system

Inertia, a fusion energy startup, has raised an unprecedented $450 million Series A to construct what it calls the world’s most powerful clean-energy laser. The round, led by Bessemer Venture Partners with participation from GV (Google Ventures), will fund development of Inertia’s Thunderwall laser system and fusion fuel technology. Founded in 2024, Inertia is pursuing inertial confinement fusion – using rapid-fire laser pulses to compress hydrogen targets and spark fusion reactions like those in the sun. The goal is to develop a breakthrough method for generating abundant carbon-free power.

This huge early-stage investment ranks among the largest ever in fusion, reflecting renewed optimism after recent lab demonstrations of net energy gain. Inertia’s team includes veterans of Lawrence Livermore’s fusion program, and notably, Jeff Lawson (former Twilio CEO) now leads the company’s push to turn fusion science into a viable power source. With the new funding, Inertia plans to scale up its laser hardware, build a pilot fusion plant, and lay the groundwork for a utility-scale fusion power facility within the next decade. The bet by top VCs indicates a belief that Inertia’s laser-driven approach could leapfrog rivals and finally bring fusion energy to the grid.

• Startup: Inertia (Silicon Valley – Fusion energy technology using high-power lasers)

• Investors: Bessemer Venture Partners (lead), GV (Google Ventures), Modern Capital, Threshold Ventures, Long Journey Ventures, others

• Amount Raised: $450 million

• Total Raised: $450 million

• Funding Stage: Series A

• Funding Date: February 18, 2026

Vestwell raises $385M in Series E funding to expand workplace savings platform

New York-based Vestwell, a fintech platform for workplace savings and retirement plans, has raised $385 million in Series E funding to accelerate its growth. The round was co-led by asset managers Blue Owl Capital and Sixth Street, vaulting Vestwell into late-stage status as it modernizes how employers offer savings programs (such as 401(k)s, 529 college plans, and IRAs) to their employees. Vestwell’s platform provides a white-label, cloud-based solution that integrates with payroll and HR systems, making it easier for businesses to set up and manage retirement and savings benefits.

This hefty investment will fuel Vestwell’s expansion amid surging demand for streamlined financial wellness tools. Founded in 2016, Vestwell has grown to over 2 million savers on its platform and administers more than $50 billion in assets. Unlike many fintech peers, the company touts profitable growth and over $200 million in annual recurring revenue, signaling strong unit economics. The new funds will help Vestwell forge more distribution partnerships (with financial institutions, fintechs, and state programs) and introduce AI-driven features to personalize advice and automate plan administration. With total funding now well above half a billion dollars, Vestwell aims to solidify its lead in the workplace savings space as employers increasingly seek better, tech-enabled retirement solutions.

• Startup: Vestwell (New York, NY – Digital platform for retirement and savings plans)

• Investors: Blue Owl Capital, Sixth Street (co-leads); also Neuberger Berman, Silver Lake Waterman, Morgan Stanley, Franklin Templeton, TIAA Ventures, HarbourVest

• Amount Raised: $385 million

• Total Raised: $660 million

• Funding Stage: Series E

• Funding Date: February 18, 2026

Ricursive Intelligence raises $300M in Series A funding for AI-driven chip design platform

Barely two months out of stealth, Ricursive Intelligence has landed a staggering $300 million Series A at a $4 billion valuation to develop its AI-and-chip co-design platform. Based in Palo Alto, Ricursive was founded in late 2025 by Anna Goldie and Azalia Mirhoseini, former Google DeepMind researchers who pioneered the use of AI to design semiconductors. Ricursive’s approach “closes the loop” between AI models and the chips that run them, allowing AI to continuously improve the hardware, which in turn accelerates AI. By integrating chip architecture design with machine-learning feedback, the startup aims to overcome computational bottlenecks that slow AI advancement.

This enormous first round – led by Lightspeed Venture Partners – reflects how strategic Ricursive’s vision is in the current AI arms race. Participants include DST Global, Nvidia’s NVentures, Felicis Ventures, 49 Palms, Radical Ventures, and Sequoia Capital (which had backed Ricursive’s seed round in 2024). Such a roster underscores investor belief that co-evolving AI and silicon is a trillion-dollar opportunity. Ricursive plans to use the capital to hire top talent and refine its platform, potentially delivering AI-optimized chip designs that offer leaps in performance and energy efficiency. With AI model complexity surging, Ricursive’s massive war chest positions it to define how next-generation chips are conceived – and to become one of the fastest-growing deep tech startups on record.

• Startup: Ricursive Intelligence (Palo Alto, CA – AI platform for automating semiconductor design)

• Investors: Lightspeed (lead); DST Global, NVentures (Nvidia), Felicis, 49 Palms, Radical Ventures, Sequoia Capital

• Amount Raised: $300 million

• Total Raised: $335 million

• Funding Stage: Series A

• Funding Date: February 18, 2026

Kavak raises $300M in Series E funding led by Andreessen Horowitz to expand its used car platform

Latin America’s tech unicorn Kavak has secured $300 million Series E funding in a round led by Andreessen Horowitz (a16z) – marking the Silicon Valley firm’s first major LatAm investment. Mexico-based Kavak operates an online platform for buying and selling used cars, combined with financing services. By formalizing the fragmented used-car market in markets like Mexico, Brazil, and beyond, Kavak lets customers browse inspected vehicles online, trade in cars, access loans through its Kuna credit arm, and handle all paperwork digitally. The new capital, which also includes WCM Investment Management as a co-lead and participation from Foxhaven Asset Management, comes as Kavak is back on a growth offensive.

Just a few years ago, Kavak’s sky-high valuation ($8.7B in 2021) and rapid expansion gave way to challenges amid a cooling venture climate. Last year, the company raised a down round at a valuation of around $2.2B and refocused on profitability. Now, with fresh funding at an improved valuation (exact figure undisclosed) and December 2025 marking its first month of profitability, Kavak appears resurgent. The Series E funds will support further expansion and technology development as Kavak doubles down on its model that blends e-commerce with auto loans. For a16z, the deal is its largest bet in Latin America to date – a vote of confidence in both Kavak’s rebound and the region’s startup potential. Kavak’s CEO, Carlos García Ottati, indicated that the company is “structurally prepared” for an eventual IPO when conditions are favorable, but for now, the focus is on disciplined growth and cementing Kavak’s position as the leading used-car platform across emerging markets.

• Startup: Kavak (Mexico City, Mexico – Online used car marketplace with integrated financing)

• Investors: Andreessen Horowitz (lead, ~$200M committed); WCM Investment Management (co-lead); Foxhaven Asset Management; others

• Amount Raised: $300 million

• Total Raised: ~$3.7 billion

• Funding Stage: Series E

• Funding Date: February 18, 2026

Korsana Biosciences raises $175M in Series A funding to advance Alzheimer’s antibody therapy

In a major biotech debut, Korsana Biosciences has launched with $175 million Series A financing to develop its novel Alzheimer’s treatment. The Boston-based startup is pursuing a “brain shuttle” antibody approach to more effectively clear the toxic amyloid plaques associated with Alzheimer’s disease. Korsana’s lead experimental drug, KRSA-028, is engineered to cross the blood-brain barrier and target amyloid buildup, potentially offering improved efficacy over current antibody therapies. The hefty funding round was co-led by Fairmount and Venrock Healthcare Capital Partners, with additional backing from Wellington Management, TCGX, and others – signaling strong conviction despite two similar Alzheimer’s drugs recently reaching market.

The fresh capital gives Korsana a runway to push its therapy into clinical trials by 2027. The startup’s formation began in 2024 with a $25M seed round from Fairmount and Venrock, and it quietly raised a larger tranche in 2025, culminating in this publicly announced Series A. Investors are betting that Korsana’s technology to ferry antibodies into the brain (“brain shuttle”) can finally crack the decades-long challenge of treating Alzheimer’s. If successful, Korsana’s treatment could differentiate itself with better plaque reduction or safety, in a field where even incremental improvements carry multi-billion-dollar stakes. With veteran neuroscientists at the helm and significant funding on day one, Korsana emerges as one of the best-financed new ventures tackling neurodegenerative disease, aiming to prove there’s still ample room for innovation in Alzheimer’s therapy.

• Startup: Korsana Biosciences (Boston, MA – Biotechnology for Alzheimer’s “brain shuttle” antibody therapeutics)

• Investors: Fairmount and Venrock (co-leads); Wellington Management; TCGX; others

• Amount Raised: $175 million

• Total Raised: $175 million

• Funding Stage: Series A

• Funding Date: February 18, 2026

Heron Power raises $140M in Series B funding to ramp solid-state transformers for data centers

Grid technology startup Heron Power has raised $140 million in a Series B financing round to scale production of its cutting-edge solid-state transformers for data centers and heavy power users. The Fremont, CA-based company – founded by former Tesla senior executive Drew Baglino – is building next-generation electric transformers that use semiconductor electronics instead of bulky iron cores. Heron’s modular solid-state transformers (branded “Heron Link”) can convert and deliver massive electrical loads (5+ megawatts each) in a compact, efficient form factor ideal for power-hungry data centers running AI workloads. The new round comes only nine months after Heron’s $38M Series A, as customer demand to replace century-old grid equipment is surging.

The Series B was led by Andreessen Horowitz’s American Dynamism fund and Breakthrough Energy Ventures (Bill Gates’ climate-tech fund), with participation from Capricorn Investment Group, Energy Impact Partners, Gigascale Capital, and Valor Equity’s Atreides fund. The high-caliber investor roster underscores the strategic importance of modernizing electrical infrastructure. Data centers – especially those supporting AI and cloud computing – are straining against the limits of traditional transformers, which are large, run hot, and lack intelligent control. Heron’s solid-state units promise not only a smaller footprint and higher efficiency, but also the ability to actively manage power flows from renewable sources and batteries. With this funding, Heron Power plans to build gigawatt-scale manufacturing capacity and fulfill a growing backlog of orders (over 40 GW in inquiries, the company says). The goal is to help data center operators and utilities upgrade to responsive, software-optimized power networks — a potentially transformative shift in the electrification of industry.

• Startup: Heron Power (Fremont, CA – Solid-state transformer technology for data centers and grid)

• Investors: a16z American Dynamism and Breakthrough Energy (co-leads); Capricorn Investment Group; Energy Impact Partners; Gigascale Capital; Valor Atreides

• Amount Raised: $140 million

• Total Raised: $178 million

• Funding Stage: Series B

• Funding Date: February 18, 2026

Northwood Space raises $100M in Series B funding to expand satellite ground networks

Los Angeles-based Northwood Space has secured $100 million in Series B funding to accelerate the deployment of its satellite ground communication networks. Founded in 2022, Northwood builds advanced ground stations – including a proprietary multi-beam Portal antenna array – that help satellites rapidly transmit data back to Earth. The new funding round was co-led by Washington Harbour Partners and Andreessen Horowitz, signaling confidence in Northwood’s approach to modernizing space infrastructure. In addition to the VC financing, Northwood announced it has won a nearly $50 million contract from the U.S. Space Force to upgrade the military’s Satellite Control Network, highlighting the strategic demand for its technology.

With this infusion, Northwood plans to scale manufacturing of its Portal arrays and expand its network of ground stations across multiple continents. The startup’s CEO Bridgit Mendler (also a co-founder) noted that the capital enables Northwood to build an “end-to-end system for ground networks” that can support a new wave of commercial and government space missions. As rocket launch costs plummet and satellite constellations proliferate, the bottleneck is shifting to the ground: managing the flood of incoming data and maintaining contact with rapidly growing satellite fleets. Northwood’s state-of-the-art ground stations aim to automate and accelerate the process, using electronically steered antennas to serve multiple satellites simultaneously. The strong investor interest and a marquee Space Force contract underscore that ground tech is now a key space investment theme, and Northwood is positioning itself as a critical enabler of the emerging space economy.

• Startup: Northwood Space (El Segundo, CA – Phased-array ground stations for satellite communications)

• Investors: Washington Harbour Partners (lead); Andreessen Horowitz (lead); Balerion Space Ventures; Alpine Space Ventures; Founders Fund; StepStone Group; Fulcrum; Pax; 137 Ventures

• Amount Raised: $100 million

• Total Raised: ~$130 million

• Funding Stage: Series B

• Funding Date: February 18, 2026

Braintrust raises $80M Series B for AI observability platform

Braintrust, an enterprise software startup focused on AI observability, has raised $80 million in Series B funding to become the go-to monitoring layer for AI models in production. The San Francisco-based company develops a platform that helps organizations track the performance, accuracy, and behavior of their AI systems – an “analytics and alerting dashboard” for AI akin to what Datadog or New Relic do for traditional software. Braintrust’s tools can detect model issues such as hallucinations, data drift, and regressions in real time, helping companies ensure their AI outputs remain reliable as they scale their use. The Series B was led by Iconiq Growth, with participation from prior investors Andreessen Horowitz and Greylock, as well as new notable backers including BaseCase Capital and angel investor Elad Gil. The round values Braintrust at around $800 million post-money.

This funding comes amid the rapid adoption of generative AI and agent-based systems, where businesses increasingly need oversight to manage risk and quality. Braintrust, founded in 2023 by CEO Ankur Goyal, has already signed dozens of customers, including Notion, Replit, Cloudflare, Ramp, and Dropbox – companies on the cutting edge of AI deployment. The startup’s platform provides detailed tracing of an AI’s decision-making steps, along with an AI assistant to help engineers pinpoint problems and improve prompts or training data. By addressing a critical “missing piece” in the AI toolchain, Braintrust has attracted big-name investors who see AI observability as a must-have for the next generation of software. The new capital will be used to expand Braintrust’s engineering team, build out more automated evaluation features, and enter new global markets to meet enterprise demand for AI governance solutions.

• Startup: Braintrust Data (San Francisco, CA – AI-native observability and model monitoring platform)

• Investors: Iconiq Growth (lead); Andreessen Horowitz; Greylock; BaseCase Capital; Elad Gil

• Amount Raised: $80 million

• Total Raised: ~$125 million

• Funding Stage: Series B

• Funding Date: February 18, 2026

Novig raises $75M Series B for commission-free sports betting platform

Novig, a New York-based sports betting startup, has raised $75 million in Series B funding to scale its commission-free online betting exchange. Unlike traditional sportsbooks that charge a “house edge” or vig on bets, Novig operates a peer-to-peer marketplace where users can wager against each other with zero fees, effectively offering better odds to bettors. The new round was led by crypto-focused firm Pantera Capital at a valuation of around $500 million and included participation from notable investors in sports and fintech. It comes less than a year after Novig’s $18M Series A (led by Forerunner Ventures) as the company’s growth accelerates following its public launch in late 2025.

Novig’s platform has quickly gained traction among bettors by promising a fairer, more transparent experience – positioning itself as the “stock exchange” for sports wagers. The infusion of capital will allow Novig to expand its market presence to more U.S. states, invest in user acquisition and compliance, and potentially integrate cryptocurrency settlement for instant, low-cost transactions (a direction hinted by Pantera’s involvement). Co-founders Jacob Fortinsky and Kelechi Ukah built Novig from a Princeton University project, and the startup is now among the best-funded in the sports tech sector. Investors are betting that Novig’s zero-commission model can disrupt the multi-billion-dollar sports betting industry, especially as regulators and users push for more competitive alternatives to legacy sportsbooks.

• Startup: Novig (New York, NY – Peer-to-peer sports prediction and betting marketplace)

• Investors: Pantera Capital (lead); Forerunner Ventures; Y Combinator; NFX; and others

• Amount Raised: $75 million

• Total Raised: ~$93 million

• Funding Stage: Series B

• Funding Date: February 18, 2026

Tech Funding Summary Table (February 18, 2026)