Happy Holidays from Mavka Capital & Looking Ahead to 2026

Dear Friend,

As 2025 draws to a close, I wanted to share some reflections on an incredibly productive year for our team and offer our perspective on what lies ahead.

Our Growing Team
This year, we strengthened Mavka Capital with exceptional talent. Misha joined as a Partner, bringing expertise in Data Center Infrastructure and PropTech. Cristian joined as a Senior Associate, enhancing our deal execution capabilities. Brian joined as Marketing and Design Lead, helping us communicate our value to the ecosystem more effectively.

2025 in Review
The sectors we focus on demonstrated remarkable momentum this year:

Mobility funding reached $55.3 billion in 2024, but faced headwinds in 2025, with first-half investments totaling $22.8 billion, according to Oliver Wyman. The firm projects full-year 2025 funding of around $45 billion, reflecting market caution amid geopolitical uncertainties, though ride-hailing and European firms showed resilience.

Physical AI emerged as a breakout category with nearly $2 billion raised by U.S. startups in 2025 alone, according to LinkedIn analysis. Major rounds included Physical Intelligence's $600 million Series B (bringing total to $1.1 billion), FieldAI's $405 million, and Apptronik's $403 million, signaling strong institutional confidence in embodied AI for industrial applications.

Data Centers hit record levels with over $61 billion invested in 2025, according to S&P Global and CNBC, surpassing 2024's $60.8 billion. The sector saw more than 100 transactions in the first eleven months alone, driven by AI infrastructure demand and hyperscaler buildouts, with debt issuance doubling to $182 billion.

PropTech raised $2.06 billion in Q1 2025 alone, with full-year VC investment reaching $15.1 billion in 2024—a 32.5% year-over-year increase, according to CRETI and Qubit Capital. Debt financing accounted for over $734 million in Q1 capital, signaling sector maturation and investor preference for revenue-tied lending.

Energy remained challenging for venture-backed startups, with climate tech VC funding continuing a sharp downward trend through 2024 into 2025, according to ETF Partners. However, grid infrastructure and decentralized energy solutions attracted steady institutional capital amid rising electrification demand.

2026 Outlook
The prognosis for venture funding and M&A in 2026 is decidedly optimistic. According to Wellington Management, global M&A volumes surged in Q3 2025, with total announced deal volume up 40% year over year and on track to surpass 2021's record highs. The ongoing Fed rate-cutting cycle is expected to further accelerate M&A activity.

According to EY, U.S. M&A deal volumes over $100 million will grow 3% in 2026 following a 9% gain in 2025, with total deal value on track to surpass $2 trillion. Their survey shows 78% of CEOs predict increased global M&A in the year ahead.

Goldman Sachs characterizes 2026 in three words: "technology, globalization, and ambition," with AI impacting not just tech companies but data centers, semiconductors, real estate, power, and transmission. According to S&P Global, data center M&A is expected to accelerate in 2026 with potentially higher valuations as energy supply constraints increase the value of existing facilities.

Wellington Management notes that valuation gaps—the biggest obstacle to dealmaking—are easing, with two-thirds of investors reporting the gap has narrowed. The IPO market built significant momentum in 2025, with volumes and proceeds growing 20% and 84% respectively, setting up strong momentum for 2026.

From our family to yours, we wish you a joyful holiday season. We look forward to working with you in the new year and making 2026 another year of meaningful growth.

Warm regards,