03/06/2026
After a short pause, and before the summer slowdown starts setting in, it feels like a good moment to look at what venture markets have been telling us so far in 2026.
The headline would be that there is more activity in the market. The more nuanced subtitle is that this is not an easier market for everyone.
➡️Globally, Q1 2026 was a record quarter for venture capital: $330.9B invested across 8,464 deals, according to KPMG. That is a major jump in capital, but not in breadth. Deal count was lower than in the previous quarter.
➡️Crunchbase data points to the same concentration effect: AI captured around 80% of global venture funding in Q1, and four companies — OpenAI, Anthropic, xAI and Waymo — raised about $188B together, close to 65% of global venture investment in the quarter.
➡️The US saw exceptional funding levels, with frontier AI, infrastructure and autonomy attracting massive amounts of capital. But if we remove the largest AI-related mega-rounds from the picture, the distance between the US and Europe becomes less dramatic. The US remains the dominant market, but the “record quarter” story becomes much more concentrated than it first appears.
➡️Europe also started the year stronger. European startups raised $17.6B in Q1 2026, up almost 30% year-on-year, according to Crunchbase. AI was the main driver here as well, accounting for more than half of European startup funding in the quarter. At the same time, European deal volume fell sharply, by around 40% year-on-year.
➡️China is showing another version of the same strategic push, with capital moving toward AI, robotics and advanced technologies, strongly supported by state-backed funding initiatives.
Different markets, but the same pattern, more money moving toward fewer companies. For founders, this can feel confusing. The headlines suggest momentum, the fundraising conversations may still feel difficult.
➡️Capital is not spreading evenly across the ecosystem. Investors are concentrating around companies that already show strong signals: technical depth, clear market pull, early traction, credible distribution, strong teams and a path to international scale. In this environment, “AI-enabled” is not enough.
➡️For angel investors, this is where the role becomes even more important. Early capital is about helping founders test assumptions, build discipline, avoid shallow trends and prepare for the next level of scrutiny. This is a market for sharper selection, deeper support and stronger conviction.
➡️For startups, the message is demanding, but not discouraging: good companies are still getting funded.
More insights below 🔽
Sources worth reading:
https://news.crunchbase.com/venture/funding-picked-up-ai-led-europe-q1-2026/
https://kpmg.com/cy/en/insights/2026/04/venture-pulse/europe.html
https://www.reuters.com/world/asia-pacific/china-venture-capital-funding-set-hit-record-q1-state-led-tech-push-2026-04-01/