Venture Beacon, Q1 2026 (Fenwick)

Summary

• A record 61% of all venture dollars raised in Q1 2026 went to AI companies, continuing a multi-quarter upward trend.p.2
• Total capital raised increased meaningfully from 2023 lows, continuing the recovery that began in 2024.p.2
• Median Seed and Series A pre-money valuations reached record highs in 2025.p.2
• The percentage of both early-stage and later-stage down rounds declined entering 2026.p.2
• The median time between Seed and Series A financings remained elevated compared to historical norms.p.2

Key insights

1. Investor-friendly deal terms such as participating preferred structures, cumulative dividends, and greater-than-1x liquidation preferences remained rare.p.2
2. AI companies outperformed broader industry benchmarks on both round size and valuation metrics at the Seed and Series A stages.p.2
3. Fenwick has published a quarterly venture capital report since 2002.p.3
4. The report is produced in partnership with Carta, combining legal expertise with Carta market data.p.3
5. Carta helps more than 50,000 primarily venture-backed companies, which have combined to raise more than $1.2 trillion in equity.p.20