Venture Capital to Focus on AI Startups in 2026 Amid Non-AI Funding Challenges
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Dec 26 2025- Shift in Investment Trends: In 2026, venture capital is expected to primarily focus on AI startups, reflecting a contraction in funding opportunities for non-AI sectors, which poses significant financial challenges for non-AI startups.
- Increased M&A Activity: Prominent investors like Cathy Gao predict a significant rise in mergers and acquisitions among AI startups, indicating a transformation in funding patterns that will become more selective and AI-focused.
- Funding Scarcity: Experts highlight that non-AI startups will face a brutal funding scarcity characterized as a 'zero-sum game', which will adversely affect their valuations and growth indicators, further challenging traditional tech sectors.
- Impact of Historical Trends: The AI momentum of 2025 has set the stage for current funding trends, with the market increasingly rewarding AI-driven innovations, suggesting a continued prioritization of AI applications in the future.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
