As we look back on the past year, one theme stands out clearly: AI is changing the arc of innovation in the enterprise, unlocking entirely new categories of company formation and broadening the opportunity set across the private markets. As AI became embedded in core enterprise operations, it moved from promise to practice, expanding the range of problems software can now address. That maturation also brought increased noise to the ecosystem, with greater dispersion in company quality and durability.
In this environment, our highly focused approach remained consistent as we backed founders who pair technical ambition with strong execution designed for scale. This discipline has long anchored Sapphire, and this year translated into meaningful outcomes across our portfolio, including Netskope’s successful public market debut. We also saw M&A serve as a strategic path to liquidity, with companies such as Qualified (Salesforce), Paradox (Workday), Moveworks (ServiceNow), Weights & Biases (CoreWeave), and Clari (Salesloft), among others, reaching important exit milestones.
While broader market conditions remain in flux and debate around AI valuations continues, we expect these early signs of liquidity to warm pathways for more IPO-ready companies. The market is actively recalibrating, and the depth of adoption and tangible customer value reinforce that this cycle is grounded in fundamentals. Even as near-term volatility may influence the pace of investment, we believe these dynamics will continue to strengthen the foundation of enterprise software over the long term.
To our founders and CEOs, limited partners, and team, thank you for your trust and collaboration. As we look ahead to 2026, we remain energized by and confident in the opportunities ahead.
