AI has taken the lion's share of US venture capital in the first half of 2026, according to the latest PitchBook data. Investors poured 87.5% of all venture dollars into AI-focused firms, while the remainder was split among a wide range of other startups.
Why AI is pulling ahead
PitchBook reports that the median valuation step-up for non-AI companies was 1.6 times, compared with 2.2 times for AI firms. The gap widens dramatically at later stages: for Series D and beyond, AI companies enjoyed a median step-up of 6.6 times.
"The Series D+ step-up is clear evidence of how much AI is driving venture valuations," said Emily Zheng, senior research analyst at PitchBook. "Median velocity of value creation at that stage jumped from $108.9 million in 2025 to over $1 billion in 2026, nearly a tenfold increase. Top AI companies like Anthropic are driving this growth, as its valuation grew 5.3 times in just eight months. Venture returns already follow a power law, and AI has raised the bar for what an outsized valuation looks like."
Liquidity remains scarce
Despite the flood of AI money, exits are limited. Only a handful of companies, such as SpaceX and Cerebras, have shown that an IPO can be worthwhile, leaving many startups reliant on private markets.
Acquisitions show mixed results
Acquisition activity hit a decade high in 2026, with total deal value reaching $375.4 billion and valuation multiples rising to 1.9 times from 1.2 times a year earlier. However, outcomes vary: ServiceNow's purchase of Armis was valued at $7.8 billion, a premium over the cybersecurity firm's prior $6.1 billion valuation, while Capital One's $5.2 billion acquisition of Brex represented a significant haircut from the fintech unicorn's peak $12.3 billion valuation.
Secondary market mirrors the divide
Secondary trading on platforms such as Forge shows a stark contrast. Start-ups that raised capital in 2021 or 2022 are trading at median discounts of 54% to 59%, whereas those funded this year or last are seeing discounts of zero to 5%.
"The winners are bigger than ever, overshadowing the rest of the venture market," Zheng added. "Companies that cannot raise on strong terms right now generally are not raising at all."
What lies ahead
The data suggests that AI will continue to dominate venture funding, raising the bar for valuation expectations across the sector. Non-AI startups may face prolonged funding shortages unless they can demonstrate clear differentiation or tap into niche markets. Observers expect the IPO window to remain narrow, while strategic acquisitions could provide an alternative exit route for high-growth firms.
For investors and founders alike, the challenge will be to navigate a market where AI sets the benchmark and liquidity is increasingly selective.