Nigel Morris reflects on four decades in financial services and why AI marks a revolutionary shift unlike previous innovations such as branchless banking, blockchain, or the rise of Big Tech. Past waves transformed banking by digitizing services, leveraging data, and reducing costs, but AI is poised to be the fundamental operating system of global finance. From wealth management to risk compliance, AI is reshaping every element of the financial ecosystem, making processes faster, cheaper, and more personalized. Morris emphasizes that incumbents must embrace transformation and AI-driven reinvention or risk losing ground to agile fintech startups. He underscores AI’s ability to reduce marginal costs to near zero and create products tailored to individual behaviors and needs. The future financial landscape will be radically different, shaped by those willing to adapt aggressively to AI’s potential.

By Ellie McDonald

Venture headlines often suggest that seed rounds have dramatically evolved, citing billion-dollar raises for newly founded companies and massive initial funding rounds. However, the data tells a different story. At Bison Ventures, with deep experience in biotech, we find that large first rounds are often necessary due to high costs but usually yield modest returns, with only about 1% of $100 million-plus seed rounds delivering venture-scale returns. Although AI companies like OpenAI and Anthropic may improve this trend, their early investor returns are still much lower than historic blockbuster investments like Google or Uber, driven largely by higher entry prices.

Despite the surge in seed rounds exceeding $50 million, traditional-sized rounds remain prevalent and continue to generate strong outcomes as seen with AI startups like Cursor and ElevenLabs that began with smaller rounds but reached billion-dollar valuations. Raising colossal seed rounds does not guarantee superior returns; in fact, it can restrict upside potential due to high entry valuations. The proven strategy across tech waves remains purchasing substantial ownership in capital-efficient companies at reasonable prices, a tactic less flashy but historically successful. While some mega-seeded AI companies will succeed, betting on these rare cases has often resulted in losses, highlighting the importance of focusing on consistent patterns rather than exceptions.

Ellie McDonald is a principal at Bison Ventures with extensive experience in infrastructure and technology investments, supporting frontier tech entrepreneurs.

In Q2 2026, European startups raised $24 billion in venture funding—the strongest quarter in four years—marking a 33% increase from the previous quarter and a 67% rise from Q2 2025's $14.4 billion. The UK secured a major portion of this growth, with over $10 billion raised, just shy of its 2021 record peak. Large venture rounds, especially those over $100 million, led the surge, driven by sectors such as AI, biotech, quantum computing, and robotics. Four companies raised billion-dollar rounds, including AI-focused labs and green tech companies. Early and late-stage funding both saw significant growth, while seed funding was softer but expected to increase as data updates. Meanwhile, M&A activity showed strength with 154 startup acquisitions totaling $11.5 billion, including three deals over $1 billion. Despite muted IPOs, the European ecosystem demonstrates resilience and rising momentum, particularly in deep tech and financial services. However, competition with the U.S. and China remains a key question for the future.

Global venture investment soared to an all-time high of $510 billion in the first half of 2026, eclipsing 2025's total of $440 billion and marking the strongest startup funding period on record, according to Crunchbase. The data reveals a striking concentration of capital, with AI powerhouses OpenAI and Anthropic alone securing $217 billion—43% of the total funding. Q2 stood out as a landmark quarter with $205 billion invested in over 5,000 startups and notable exits, including SpaceX's historic $1.77 trillion IPO and $60 billion acquisition of Anysphere, driving the most robust exit market since 2021. Funding expanded broadly across stages and sectors, with 16 companies raising billion-dollar rounds, spanning AI infrastructure, defense, robotics, and healthcare. Despite the high concentration in a few companies and the U.S. dominance in funding, the venture ecosystem appears to be entering a new cycle of growth fueled by liquidity returns through IPOs and mergers. This trend suggests 2026 might be remembered as a year of record investment paired with a revitalized exit market, reinforcing each other for future expansion.

The AI industry is experiencing pivotal shifts as Qualcomm acquires Modular, a startup simplifying AI deployment across various chip types. Concurrently, SambaNova secures $800 million in funding, highlighting the increasing value of AI software over traditional hardware alone. Dave Munichiello, GV’s managing partner and early investor in both Modular and SambaNova, discusses how AI hardware is evolving into a heterogeneous blend of chips—CPUs, GPUs, and AI-specific processors—necessitating versatile software layers. He reflects on GV’s long-standing investments in AI infrastructure dating back to 2016 and the landscape of semiconductor startups amid rising consolidation. Munichiello emphasizes the importance of operational excellence and sustainable market traction over hype, explaining the challenges of capital-intensive hardware ventures versus more flexible software startups. He also notes that IPO prospects remain open despite consolidation, supported by increased demand for diverse computing solutions and the rise of open-source AI models. Highlighting GV’s investment philosophy, Munichiello champions backing resilient founders through industry challenges to build lasting companies, evidenced by Modular’s 27x return on their initial investment.

The second quarter of 2026 has marked the highest number of billion-dollar startup exits since 2021, according to Crunchbase data. This period featured the largest venture-backed exit ever with SpaceX's historic IPO, which raised about $75 billion and achieved a $2.1 trillion market cap on the first day. Alongside SpaceX, several other startups made significant exits through acquisitions and IPOs, including Cursor’s $60 billion acquisition by SpaceX, Cerebras Systems’ $5.55 billion IPO, and Quantinuum raising $1.7 billion in its Nasdaq debut. While the total number of big exits remains below the peak seen during the IPO and SPAC boom five years ago, the size and value of these deals are notably larger. This trend suggests that although fewer billion-dollar exits are happening, their magnitude and impact are growing, with upcoming IPOs from Anthropic and OpenAI expected to further reshape the market.

This article is the third in a series examining venture investment in Black-founded startups in 2026, fueled by data from Crunchbase’s Diversity Spotlight. Although data shows Black founders receive a minimal share of venture capital, this piece delves into why investors often overlook them and what changes could improve results. Six venture capitalists who actively support Black entrepreneurs share insights, highlighting the need to expand deal sourcing beyond traditional networks, recognize the structural barriers founders face before pitching, and emphasize that lasting progress requires changes from both investors and entrepreneurs. They point to the importance of intentional efforts to widen investor networks, improve outreach, and encourage founders to focus on building strong businesses with clear customer traction. The article reflects on the structural challenges and cultural biases within the industry, urging firms to move beyond performative commitments and make fundamental shifts to foster sustainable growth and investment in Black-founded startups.

Robotics startups have secured unprecedented venture funding in 2026, reaching $18.8 billion globally, surpassing 2025’s $15 billion and even the peak of $14.1 billion in 2021, with over half the year still ahead. This surge reflects a shift in investor confidence towards embodied AI—robots integrated with advanced physical AI that interact dynamically with the world. Standout funding rounds include Austin’s Saronic raising $1.75 billion for autonomous sea vessels, Neura Robotics securing $1.4 billion for AI infrastructure, and Skild AI tripling its valuation to $14 billion with a $1.4 billion raise for its versatile robotics brain. Other notable raises come from Beijing-based Shihang Intelligent and Apptronik, the latter expanding its Series A to nearly $1 billion. M&A activity remains active, with big tech and automotive firms acquiring robotics talent and companies, while China sees heightened IPO activity with Unitree Robotics and Robotphoenix going public. This funding momentum signals growing confidence in robotics’ transformative potential across industries.

In 2018, a startup funding round of $100 million was dubbed the “Supergiant Round,” signaling a massive investment milestone. Fast forward to today, $100 million rounds are not only common but represent the median size of late-stage financing deals in the U.S. The landscape has shifted dramatically, with even larger rounds, like OpenAI’s record-breaking funding, pushing the boundaries.

The rise of these jumbo rounds is tied to the growth of startups like Uber and WeWork in the late 2010s, peaking during the 2021 bull market, and surging with the AI investment wave. This year alone, 250 rounds of $100 million or more have been funded, with half exceeding $200 million, and some reaching over $1 billion.

Alongside this, median late-stage round sizes have doubled since 2020, now averaging around $100 million. Valuations have similarly skyrocketed, with many startups valued at over $10 billion, and a couple eyeing IPOs valued near $1 trillion. Investors are clearly placing big bets with high expectations for returns as the startup funding environment continues to evolve.

San Francisco-based venture firm Base10 Partners has successfully closed two funds totaling $850 million: a seed and Series A fund 4, and a Series B fund 2, aimed at investing in automation technologies impacting the real economy. Co-founder Adeyemi Ajao shared with Crunchbase News that their investment thesis centers on leveraging technology to extend capabilities typically reserved for the top 1% to the broader 99%. Their portfolio includes diverse companies such as Nubank, Motive, WeTravel, Happy Robot, and Blank Street, with a strong focus on sectors like logistics, payroll, and construction. They are also exploring advanced AI technologies, including vision models and manufacturing intelligence, to revolutionize real economy applications. Base10 invests primarily at seed through Series B stages, committing to 10-15 seed rounds and 2-3 Series A investments annually, alongside 3-4 Series B deals. The firm’s research-driven approach involves deep sector analysis and meeting numerous global companies, leveraging an internal AI system, Base11, to streamline research. Despite technological aids, human insight remains crucial in their investment decisions, particularly understanding founders and customer needs. Base10 also runs an Advancement Initiative, donating up to half of carried interest to support financial aid at underfunded colleges and universities.