Please find Sapphire Ventures’ latest Market Memo, “Taking Stock of Markets.” In this month’s memo, we assess what the latest 2026 data tells us about the state of the private and public enterprise software markets, both of which are increasingly defined by the opportunities and risks surrounding AI.

Here’s a preview:

• VC funding rebounded: Global venture investment climbed back toward record levels in 2025, driven largely by massive AI financings.
• Capital is concentrating: A small number of mega-rounds, often tied to AI labs, are capturing an increasingly large share of total funding.
• Enterprise software is dominating VC: The category now accounts for over half of total venture investment as companies race to deploy AI across the enterprise.
• Seed rounds are getting bigger: Nine-figure seed financings are becoming more common as investors place early bets on ambitious AI-native startups.
• Private company outcomes are expanding: The most valuable private software companies are now measured in the hundreds of billions, rivaling the scale of public incumbents.
• Fundraising cycles are accelerating: Leading AI startups are raising capital faster than ever as they race to build balance sheets for the next phase of the AI buildout.