An investor’s field guide to funding in 2026

AI’s Unstoppable Ascent: Investor Insights for Funding in 2026

Mike Butcher, Founder and Editor of Pathfounders.com, opened a Web Summit Lisbon 2025 discussion on AI’s dominance in venture capital. The panel featured Mr. Zach Coelius (Coelius Capital), Ms. Zoe Perret (Initialized Capital), and Mr. Enrico Mellis (Lakestar), offering US and European investment perspectives.

Ms. Perret noted “climate” investments are now framed as “energy” or “resilience,” reflecting a shift to non-software sectors like robotics, defense, and energy. AI’s immense energy demand drives this redefinition, making energy a critical, climate-aligned investment area.

Mr. Coelius seeks “awesome founders” with novel ideas. Mr. Mellis highlighted a shift from business-school-led copycat ventures to founders tackling complex, specialized markets. Investors now prioritize “founder-market fit,” valuing deep technical expertise over general business acumen.

Ms. Perret stressed the need for highly technical founders who can attract world-class AI researchers. Significant funding is allocated to talent acquisition, especially in software. A founding team’s respect among top AI researchers is crucial for technical progress.

Mr. Coelius explained that the internet’s efficient distribution, combined with AI’s “magic,” enables rapid market penetration. Some AI-native companies achieve $0 to $10 million in revenue within months. This rapid growth highlights AI’s immediate impact on user adoption.

Ms. Perret contrasted software with hardware businesses, where traditional revenue metrics are less applicable. Founders must effectively articulate their vision and educate investors on future capital needs. This requires unique storytelling, as these ventures often create new categories.

Mr. Mellis discussed Lakestar’s investment in Ravical, an agentic AI company for professional services. The goal is to enhance, not replace, these firms. Professional services require human liability. The focus is on “AI plus the human in the loop,” leveraging proprietary data to improve efficiency.

The panel emphasized founder integrity. Mr. Coelius prioritizes “truth-seeking,” distinguishing compelling narratives from hyperbole. Ms. Perret identified a lack of self-awareness as a major red flag. Founders must understand their strengths and deeply comprehend their market for venture-level outcomes.

The discussion addressed macroeconomic factors, including the potential for an AI bubble. Mr. Coelius acknowledged the “froth” from rapid wealth creation stories. Geopolitical dynamics and non-dilutive capital, such as government grants, also influence investment decisions, particularly for defense-related companies.

Founders generate buzz through evolving methods, from elaborate video campaigns to constant ARR updates. Mr. Mellis prefers “social signal” over pure hype. Ms. Perret stressed personal and company branding. For 2026, Mr. Coelius and Ms. Perret predicted a “continuing boom,” while Mr. Mellis offered a “bursting bubble” perspective, concluding the panel with divergent predictions.