In the ever-evolving landscape of venture capital and startup funding, the predictions and insights of top investors play a crucial role in shaping the direction of the industry. As we step into 2026, JS has once again gathered the thoughts and perspectives of five prominent investors from various markets to shed light on what the year ahead may hold.
James Norman, Managing Partner at Black Ops VC, emphasizes the shift from being “visionary” to “battle-tested” for founders seeking to raise capital in 2026. With the rise of “pilot purgatory” and the need for more than just traction, founders must demonstrate a distribution advantage and deep subject matter expertise to stand out in a competitive market. Investors are now looking for sustainable, long-term growth potential rather than flashy demos.
Morgan Blumberg, Principal at M13, anticipates a rise in the funding bar for founders, especially in AI application software. With intense competition and capital saturation in many sectors, founders need to differentiate themselves with unique distribution channels and evidence of explosive momentum. Clear indicators of revenue sustainability will be crucial for securing top-quartile rounds at Series A and B stages.
Allen Taylor, Managing Partner at Endeavor Catalyst, highlights the importance of bigger total addressable markets, faster growth, and better unit economics for founders in 2026. Real revenue and customers are still essential, but investors are increasingly focused on understanding a company’s future trajectory and growth potential. The ability to articulate a clear and credible vision for the future will be key to successful fundraising.
Dorothy Chang, Partner at Flybridge Capital, emphasizes the need for founders to tackle big ideas with unique insights and proprietary advantages. As generative AI tools level the playing field, founders must focus on building in problem areas where they have a competitive edge. Bringing something proprietary that cannot be easily replicated, whether through technology, data access, or network relationships, will be crucial for venture-scale success.
Shamillah Bankiya, Partner at Dawn Capital, underscores the importance of proving ROI to investors in the enterprise market. With a heightened awareness of the value that AI can deliver, founders must demonstrate clear benefits and a strong return on investment to attract capital in 2026.
Looking ahead, investors like Norman are seeking “high-context founders” with deep industry expertise and unique distribution advantages. Blumberg is interested in investing in legacy industries where AI can drive significant ROI, while Taylor sees opportunities for venture returns outside traditional tech hubs like Silicon Valley.
As the global venture landscape continues to expand, with more venture dollars flowing outside the U.S., the potential for venture-scale companies in emerging markets like Latin America, Africa, and South Asia is on the rise. With diverse opportunities and a shifting funding landscape, 2026 promises to be an exciting year for founders and investors alike. In the world of startups and venture capital, it’s not uncommon to see founders from unexpected places building global businesses. From Venezuela to Iraq, or Sudan to New York, the entrepreneurial spirit knows no boundaries.
Chang, a prominent figure in the industry, is particularly drawn to founders who are addressing significant challenges and utilizing technology to drive progress. He’s less interested in startups focused on automating workflows and more intrigued by the larger platform shifts that are shaping our technological and societal landscape.
Bankiya, on the other hand, sees the future at the intersection of software and hardware. With most of the world’s GDP tied up in physical industries, she believes that software-only solutions are not enough to unlock the world’s growth potential. The next frontier, she argues, lies in bridging the gap between software and hardware to drive innovation and progress.
When it comes to the IPO market, opinions are divided. Norman believes that the IPO market is on the brink of thawing out of necessity rather than ideal conditions. Private markets have sustained multibillion-dollar valuations for too long, disconnected from profitability and liquidity, and a reset is imminent. Blumberg, on the other hand, sees a reopening of the IPO markets driven by a backlog of companies planning to list.
Looking ahead to the venture market in the coming year, fund managers like Norman and Taylor are preparing for a clearing event that will separate durable platforms from transient ones. Family offices are stepping in to fill the gap left by retreating institutions, seeking unique and high-conviction strategies. Blumberg anticipates a strong vintage year for AI transformation, advising portfolio companies to strengthen their balance sheets for potential downturns.
Overall, the venture landscape is evolving rapidly, with new opportunities and challenges arising. The global nature of entrepreneurship means that innovative founders can emerge from any corner of the world, creating a diverse and dynamic ecosystem for investment and growth.
Great companies are formed in all cycles. In the ever-evolving landscape of technology and innovation, the interest in artificial intelligence (AI) among investors and startups has been a driving force in recent years. As we look towards the future, what can we expect in terms of AI investment and development in the coming year?
What will happen to all the investor and startup interest in AI next year?
Norman
In 2026, we are witnessing a shift from mere curiosity about AI to a demand for practical applications and scalability. The focus is shifting from simply building AI models to building sustainable businesses that leverage AI to solve complex, high-value problems. The most successful companies are those that harness AI to revolutionize traditional markets and dramatically increase efficiency. Investors are no longer just looking for “AI startups”; they are seeking out tech founders who can leverage AI to transform industries.
Blumberg
While investor and startup interest in AI is expected to remain high, we may start to see consolidation in certain sectors like coding automation, sales automation, and marketing as market share becomes concentrated in specific assets through acquisitions and partnerships.
Taylor
The interest in AI is likely to continue, but by the end of 2026, AI may no longer be a separate category but an integral part of all new technology companies. The focus will shift from the hype surrounding AI to practical applications that drive real business value.
Chang
The momentum in AI investment is unlikely to slow down, with a growing emphasis on translating infrastructure and theoretical investments into tangible enterprise value at the application level.
Bankyia
Unless significant external factors disrupt the market, such as an energy crisis or economic instability, AI is expected to remain a hot topic among investors and startups.
What is something unexpected that could happen in 2026 in the world of venture and startups?
Norman
One unexpected shift in 2026 could be the transition away from a single dominant AI model like GPT towards a multi-model approach. Companies are moving towards specialization and leveraging a variety of models to enhance product offerings and user experiences.
Blumberg
We may see successful startups emerge with minimal funding rounds, thanks to advancements in AI tooling that enable profitability without excessive spending. Additionally, there may be a shift towards using smaller, more controlled models in favor of large language models for improved explainability and reliability.
Taylor
The end of the Russia-Ukraine war could lead to a resurgence in investing in Ukrainian founders, who are known for their innovation and talent. Furthermore, we may witness international companies, particularly from Latin America, going public in New York and major technology IPOs from the Middle East, reshaping global tech leadership expectations.
As the AI landscape continues to evolve, it is crucial for investors and startups to adapt to changing trends and focus on practical applications that drive real value in the market. The future of AI lies in leveraging multiple models, specialization, and strategic investments in emerging markets and technologies.
The world is constantly changing, and with it, our understanding of the world and how we interact with it. As we continue to evolve, so too does our approach to various aspects of life, including how we view and interact with the environment. In recent years, there has been a growing movement towards sustainability and eco-conscious living, as people become more aware of the impact that their actions have on the planet.
One of the key ways in which individuals can reduce their environmental footprint is by adopting a zero-waste lifestyle. This means making conscious choices to minimize the amount of waste that is produced, and to ensure that any waste that is created is recycled or composted in an environmentally friendly way. This can involve making changes to everyday habits, such as using reusable bags and containers, buying products with minimal packaging, and avoiding single-use items like plastic straws and water bottles.
The zero-waste movement has gained momentum in recent years, as more and more people become aware of the need to protect the environment and reduce their impact on the planet. This shift towards sustainability is being driven by a number of factors, including growing concerns about climate change, pollution, and resource depletion. People are beginning to recognize that the way we live our lives has a direct impact on the health of the planet, and are taking steps to reduce their environmental footprint.
There are a number of benefits to adopting a zero-waste lifestyle. Not only does it help to reduce the amount of waste that ends up in landfills and oceans, but it can also save money and improve overall health and well-being. By choosing to buy products in bulk, for example, individuals can reduce packaging waste and often save money in the process. Similarly, by choosing to eat locally and seasonally, people can reduce their carbon footprint and support local farmers and producers.
While the concept of zero-waste living may seem daunting at first, it is important to remember that every small change can make a difference. By making simple swaps, such as using cloth napkins instead of paper ones, or bringing a reusable coffee cup to the café, individuals can begin to reduce their impact on the environment. Over time, these small changes can add up to make a significant difference, and help to create a more sustainable future for generations to come.
In conclusion, the zero-waste movement is an important step towards creating a more sustainable and environmentally friendly world. By making conscious choices to reduce waste and live more mindfully, individuals can help to protect the planet and ensure a healthy future for all. Whether it’s through reducing single-use plastics, composting food scraps, or supporting local businesses, there are countless ways that each of us can make a positive impact on the environment. Let’s all do our part to create a cleaner, greener world for future generations.
