In New York last week, we had the opportunity to join a State of the Markets conversation with leaders shaping today’s innovation economy — including Jessica Kaden, Partner at Union Square Ventures, Ben Lerer, Managing Partner at Lerer Ventures, and the team from Silicon Valley Bank, among others.
A few takeaways that feel especially relevant for founders heading into 2026:
• Capital is moving again — but it’s highly selective. This is not a broad-based rebound. Companies with real traction, disciplined burn, and a clear revenue story are the ones getting attention.
• AI is a true platform shift, but fundamentals still matter. The opportunity is massive, yet there was consistent agreement: hype alone won’t carry companies forward. Investors are digging deeper into unit economics, revenue quality, and execution.
• Operational discipline is now a competitive advantage. Founders who extended runway, right-sized teams, and focused on efficiency over the past 18–24 months are showing up stronger in today’s conversations.
• Series A is cautiously reopening. Not wide open — but improving for companies that can demonstrate customer pull, repeatable growth, and clarity on the path forward.
• Exits are re-emerging, selectively. IPO and M&A activity are picking up compared to recent years, but the bar for scale, predictability, and durability remains high.
My biggest takeaway: this is a market that rewards operators.
Clarity beats storytelling. Discipline beats speed. And fundamentals matter more than ever.
For founders in our community, this reinforces why we stay focused on building fundable, durable companies that can win across cycles — not just in frothy markets.
Curious how other founders are adjusting their strategy heading into 2026.
Derek Smith, Plug In Ventures