TL;DR
A group of investors told TechCrunch that raising in 2026 will demand proven distribution, measurable ROI and domain expertise rather than flashy demos. They expect increased attention on AI infrastructure, legacy industries, and a likely reopening of IPO windows — with more activity outside the U.S.
What happened
TechCrunch asked five investors from different firms to project what 2026 will look like for startups and venture capital. Across their responses, a common theme emerged: the bar for fundraising is rising. Founders will need more than technical demos or early traction; investors are prioritizing repeatable sales engines, proprietary workflows, and founders with deep, industry-specific experience who can demonstrate a clear path to scale and revenue durability. Several investors highlighted opportunities in overlooked or complex verticals where AI can drive outsized ROI, plus infrastructure for foundational models and frontier AI research. Multiple respondents also signaled a geographical shift in venture activity, citing strong deal flows and exits outside Silicon Valley. Finally, several investors predicted a thaw in public listings driven by a backlog of companies and limits to how long private markets can sustain inflated valuations.
Why it matters
- Founders must prove sustainable customer acquisition and unit economics, not just product novelty.
- Emphasis on domain expertise and proprietary advantages favors operators with deep sector experience.
- Increased investor interest in nontraditional geographies could expand capital access and exit pathways.
- A reopening IPO market would restore liquidity and price discovery for late-stage companies.
Key facts
- Five investors were interviewed: James Norman (Black Ops VC), Morgan Blumberg (M13), Allen Taylor (Endeavor Catalyst), Dorothy Chang (Flybridge Capital) and Shamillah Bankiya (Dawn Capital).
- Investors said fundraising in 2026 will focus on repeatable sales engines, distribution advantages and demonstrable ROI.
- Generative AI tooling is making it easier to build software, raising competition and increasing the need for proprietary differentiation.
- Areas of investor interest include AI infrastructure for foundational models, frontier research (embodied AI, world models), healthcare platforms, and legacy sectors with high ROI potential from AI.
- One investor reported making 50 investments across 25 countries in a year, underscoring greater geographic diversification.
- An investor asserted that more than half of venture dollars and a majority of the world’s unicorns are now located outside the U.S.
- Several investors expect the IPO market to thaw in 2026 as private markets face limits and companies seek liquidity.
- Private credit has extended runways for some companies, but investors described it as a temporary measure rather than a long-term fix.
What to watch next
- Whether a handful of large, high-profile IPOs (for example, major AI companies) will reopen momentum for broader tech listings.
- Investment flow into AI infrastructure and frontier research areas such as embodied AI and world models.
- Geographic expansion of venture and IPO activity — more tech listings and venture returns outside the U.S., including markets like Saudi Arabia and Latin America.
Quick glossary
- Distribution advantage: A company’s ability to acquire and retain customers in a repeatable, cost-effective way that competitors cannot easily replicate.
- Foundational models: Large-scale machine learning models trained on broad data that can be adapted for many downstream applications.
- Private credit: Debt provided to private companies, often used to extend runway without immediate equity dilution.
- IPO (Initial Public Offering): The first sale of a company’s shares to the public, providing liquidity and public market valuation.
- High-context founder: A founder with deep, lived experience in a specific industry or domain that informs product and go-to-market decisions.
Reader FAQ
Will the IPO market reopen in 2026?
Multiple investors in the story said they expect a thaw as private markets reach limits and a backlog of companies seeks liquidity.
What will investors demand from founders in 2026?
Investors expect founders to demonstrate repeatable sales, clear distribution strategies, domain expertise and visible ROI.
Which sectors are investors most interested in?
Interest was expressed in AI infrastructure, frontier AI research, healthcare platforms, and legacy industries where AI can unlock high ROI.
Is venture activity shifting away from the U.S.?
Investors in the article reported significant deal flow and unicorn formation outside the U.S., and one noted that more than half of venture dollars now go abroad.
Each year, we ask some top investors what they think the next year will bring. Last year, some investors thought the IPO market would be back up and running by now (which…
Sources
- What’s ahead for startups and VCs in 2026? Investors weigh in
- Venture Capital Crystal Ball: What 2026 Holds for Startups …
- 14 Big Ideas for 2026 – a16z speedrun
- Aman Singh Talks 2025's Billion-Dollar IPOs, 2026… – Fenwick
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