Select the Sauté mode on the Instant Pot. Add the bacon and cook for 6-8 minutes until crispy. Remove from heat and place on a paper towel lined plate to drain.

Pat the beef dry and season well with salt and pepper. Continuing on Sauté mode, add half of the beef to the pot with the bacon grease and cook until browned on all sides for about 5 minutes. Place the browned beef on a plate and repeat with the remaining half of the meat. Set aside.

Add the onion and mushroom and continue to cook on Sauté mode for another 5 minutes until softened and the liquid from the mushroom evaporates. Add the garlic and cook for 30 seconds longer.

Add the tomato paste and stir well, then add the wine and scrape up any brown bits from the bottom of the pan. Cook until the wine has reduced to 1 cup, or about 5 minutes.

Add the beef back to the pot along with the beef broth, bay leaf and thyme. Secure the lid and close the venting valve, then select Pressure Cook and set for 30 minutes. When done, allow the pressure to naturally release for about 10 minutes then quick release and remove the lid.

Add the carrots and pearl onions and secure the lid once more. Pressure cook for 5 minutes, then allow the pressure to naturally release for 5 minutes. From there, quick release the pressure and remove the lid.

Remove the thyme sprig and bay leaf. Combine the cornstarch and water, stirring well to combine. Select the Sauté mode and stir in the cornstarch slurry. Cook until thickened, about 3 minutes, then add the bacon just before serving. Enjoy!