Friends,
In last month’s newsletter, we highlighted how software as a service (SaaS) and defense technology are pulling ahead heading into 2026, as capital concentrates around enterprise artificial intelligence (AI) adoption, federal spending priorities, and sectors delivering near‑term return on investment (ROI), while medical and health tech lag amid regulatory, clinical, and reimbursement hurdles. We also highlighted how crypto is positioning for a cautious rebound, with institutional‑grade companies anchored in stablecoin‑driven, recurring revenue preparing for public markets as regulatory clarity improves and consolidation accelerates.
This month, we examine how venture capital (VC) in 2026 has stabilized but grown increasingly concentrated, with AI and SaaS absorbing a larger share of funding as investors favor scale, near‑term traction, and predictable revenue. We also examine how AI infrastructure, particularly inference platforms tied to real‑world deployment, is emerging as a primary beneficiary, while capital continues to retreat from longer‑horizon sectors facing exit uncertainty and macro pressure.
PitchBook reports that VC activity has stabilized heading into 2026, with deal value climbing back above historical trend lines for the first time since the 2022 correction. The recovery, however, is highly concentrated rather than broad‑based. AI and SaaS now command the majority of deployed capital, with investors writing larger checks into a narrower set of companies, while sectors such as life sciences and fintech capture a shrinking share of overall deal value. This pattern reflects structural reprioritization more than cyclical exuberance: capital is flowing toward categories that can absorb scale efficiently and demonstrate near‑term commercial traction, while higher‑risk, longer‑duration sectors remain constrained by uncertain exits and macro pressures, including sustained high interest rates.
Within AI, infrastructure is emerging as the clearest expression of this concentration, particularly among startups focused on inference rather than model training. As AI adoption moves from experimentation to enterprise deployment, inference has become the “meter running” layer, driven by every user interaction, query, and agent workflow, creating revenue profiles that look increasingly recurring and durable. PitchBook suggests that investors are responding accordingly, backing inference chipmakers and platforms as foundational enablers of AI’s next phase, supported by expanding enterprise demand and, in some markets, coordinated government investment. The result is a capital stack that favors platforms positioned downstream of AI adoption rather than upstream of experimentation, signaling a shift from speculative model development toward operational infrastructure built to scale with real‑world usage.
As always, please do not hesitate to contact us if we can help you brainstorm solutions to a legal or business challenge you are facing or connect you to a potential investor, professional, or entrepreneur.
Spotlight on Ready for Anything: Preparing for IPOs, SPACs, and Unexpected Capital Market Shifts
Ready for Anything: Preparing for IPOs, SPACs, and Unexpected Capital Market Shifts | March 12, 2026
Foley, alongside the LA Venture Association, Protiviti, SS&C Intralinks, and Nasdaq, hosted Ready for Anything: Preparing for IPOs, SPACs, and Unexpected Capital Market Shifts at its Los Angeles office. The program convened a thoughtful group of Chief Financial Officers (CFOs), finance leaders, general counsel, private equity operating partners, emerging‑growth executives, investors, and advisors for a timely discussion on navigating today’s volatile capital markets. With public markets beginning to show signs of reopening, the session focused on how companies can position themselves amid evolving conditions and increasing uncertainty.
Moderated by Louis Lehot, the conversation featured Dan Angius of Nasdaq, Andrea Vardaro Thomas of Protiviti, and Michael Golomb of Blockstream, who shared practical perspectives on initial public offering (IPO) timing, continued shifts in the special purpose acquisition company (SPAC) landscape, private‑market pressures, and the sustained importance of dual‑track planning heading into 2026. The panel emphasized the need for flexibility and preparedness as companies weigh financing and liquidity options in a changing environment. The program concluded with a networking reception that fostered continued dialogue and connection among participants, underscoring the value of bringing together founders, CFOs, investors, and advisors for candid, experience‑driven conversations.
Events
Upcoming:
Female Founders & Funders: Women in Health Tech & Innovation | April 9, 2026
Foley, Silicon Valley Bank, and CVS Health Ventures will host a conversation on the future of health tech and innovation, a curated Female Founders & Funders Breakfast focused on the next wave of health care innovation. The program will bring together founders, investors, and industry leaders for a candid discussion on market dynamics, emerging trends, and where meaningful opportunities are taking shape heading into 2026. Featuring perspectives from Alicia Dorner, Alyssa Reisner of CVS Health Ventures, and Kaitlin Berube of Silicon Valley Bank, the conversation is designed to deliver actionable insight, informed outlooks on the health tech landscape, and valuable connections among leaders navigating similar challenges.
Capital Connect: From Seed to Series A in Today’s Market | April 23, 2026
Foley is cosponsoring the Capital Connect in Silicon Valley, convening founders, investors, and advisors for a focused discussion on what it takes for early‑stage life sciences companies to progress from Seed to Series A in an increasingly diligence‑driven market. Foley partners Antoinette Konski and Brian Wheeler will share legal and intellectual property perspectives on investor expectations, milestone planning, and operational readiness, drawing on firsthand experience advising emerging biotech companies through early financings. The program is designed to provide practical guidance and meaningful connections for Seed and early Series A founders, CEOs, and investors navigating heightened scrutiny and evolving fundraising standards.
Founders & Funders: SF VC Reverse Pitch | April 28, 2026
This curated evening, hosted by Foley, Auth0, Forecastr, and Justworks, will bring together Seed and Series A founders and active investors for a focused program centered on capital formation and relationship‑building. Rather than founders pitching, participating venture capitalists will present their investment theses, target markets, typical check sizes, portfolio strategies, and what they look for in founders. The agenda will include structured networking and a dedicated pitch session designed to encourage substantive dialogue and meaningful connections. With limited spots available and attendance by approval only, the event will prioritize founders actively raising capital and investors currently deploying.
Women and Allies in Investment Management | April 30, 2026
Hosted by Foley and Deloitte, this fireside chat will convene industry leaders at Deloitte’s San Francisco office for a timely conversation on issues shaping women in Investment Management. Moderated by Jennifer Mariska, COO of Forerunner Ventures, the discussion will feature insights from Catherine Chen, CFO of Lightspeed, and Monique Woodard, Founding Partner of Cake Ventures. The program will explore regulatory developments and market considerations heading into the new year, followed by a networking happy hour designed to encourage connection among peers and industry leaders. The event will be open to all attendees and will conclude with informal networking in a relaxed setting.
Recent:
Mavka Salon: Mind the Gap — Silicon Valley’s New Mission in Defense Tech | April 1, 2026
Mavka Capital and Foley hosted an off‑the‑record Mavka Salon dinner focused on the intersection of defense innovation and venture capital. Led by Ray Edwards, the conversation explored the Department of Defense’s growing reliance on the venture ecosystem and the often‑opaque journey from pilot programs to procurement. Drawing on his experience advising dual‑use startups through Defense Innovation Unit (DIU) and Navy Launch Small Business Innovation Research (SBIR), Ray shared practical perspectives on bridging non‑dilutive government funding and private capital, and where real opportunities are emerging at the defense‑commercial frontier.
2026 ACC Tech Law Symposium | March 27, 2026
Foley was proud to serve as a sponsor of the 2026 ACC Tech Law Symposium, held at the Adobe Utah Campus in Lehi, Utah. The one-day program brought together industry leaders to explore the trends, challenges, and opportunities shaping today’s technology law landscape. Attendees gained practical insights on data privacy, cybersecurity, intellectual property, and emerging technologies, while engaging in meaningful connections across the legal and technology communities. Designed for in-house counsel, outside counsel, and technology leaders, the symposium provided timely perspectives to help professionals stay ahead in a rapidly evolving environment.
GCVI Summit Dinner | March 24, 2026
Foley hosted an exclusive private dinner during the 10th annual GCVI Summit, welcoming close friends and colleagues for an evening centered on conversation, excellent food, and wine. Held separately from the conference’s “rising stars” dinner, the gathering offered a relaxed, informal setting to reconnect with familiar faces, meet new members of the community, and spend time with those who make GCVI a valued annual tradition. The dinner provided a comfortable space to unwind after a full day at the Summit and continue the conversations that define the GCVI community.
Hard Things | March 19, 2026
Foley and Mavka Capital launched Hard Things, a new event series focused on the founders, investors, and innovators driving advances in Physical AI, the movement from cloud‑based intelligence to AI embedded in machines, robots, and real‑world systems. The inaugural gathering convened leaders across robotics, autonomous systems, AI‑enabled manufacturing, and edge computing for candid discussions about the realities of building and deploying intelligent hardware at scale. Designed as an intimate, high‑signal forum, Hard Things debuted as a recurring community centered on substantive dialogue, standout speakers, and thoughtful exchange around the future of AI in the physical world.
The CFO as Capital Architect: Funding Strategy in a New Market Era | March 11, 2026
Louis Lehot moderated a timely discussion on capital markets that explored how a rapidly shifting funding environment is redefining the CFO’s role. As traditional financing models face pressure and new capital sources continue to emerge, the panel examined how operators, investors, private equity firms, and family offices are navigating capital decisions throughout the company lifecycle. Framed as a practical, experience‑driven conversation, the session focused on evaluating alternative capital options, weighing liquidity against long‑term investment priorities, and aligning financing strategies with broader business transformation goals.
Fintech Forward: Strategy, Scale, and Success in a Rapidly Changing Market | March 10, 2026
Foley served as a proud sponsor of a highly attended fintech and AI event in San Francisco that brought together more than 120 founders, investors, and senior leaders to discuss how AI is reshaping financial services. The program featured a notable lineup of speakers, including Natasha Allen, who participated in a panel examining where meaningful opportunities are emerging, how fintech companies are responding to change, and what this generational technology shift means for business strategy and growth. With a keynote from Crunchbase journalist Gene Teare and networking throughout the evening, the event offered grounded perspectives on payments, platforms, and fintech infrastructure, along with candid discussion about the forces driving the industry’s next phase.
Foley General Counsel Lunch Series — Legal AI | March 6, 2026
Foley hosted a private General Counsel lunch in Palo Alto that convened in‑house leaders for a substantive discussion on the rapidly changing legal AI landscape. The conversation focused on where the technology is heading and how law firms are currently deploying AI across functions such as research, drafting, due diligence, e‑discovery, and knowledge management. Speakers addressed the considerations influencing adoption, including risk management and governance, and examined topics ranging from confidentiality and data stewardship to model accountability, bias, vendor evaluation, and emerging regulatory and litigation developments. Over lunch, participants exchanged perspectives, posed questions, and gained practical takeaways on the role legal AI is playing in modern corporate legal strategy.
SOLID Summit | March 5, 2026
Kelly Boyd took part in a wide‑ranging discussion with the SOLID community that explored the growing impact of AI on the business of law. Known for bringing together legal leaders, operators, technologists, and innovators, SOLID once again fostered open, substantive conversations that encouraged thoughtful decision‑making and organizational adaptability. The Summit centered on the evolving connections between legal operations, technology, eDiscovery, privacy, compliance, talent, and AI, highlighting how senior leaders are reshaping the way legal work is approached. Attendees engaged in practical dialogue, shared perspectives, and built connections with peers navigating similar challenges and opportunities across the legal landscape.
Thought Leadership
California’s Proposed 2026 Billionaire Tax Act: What You Need to Know
California’s proposed 2026 Billionaire Tax initiative signals a significant escalation in state‑level wealth taxation, introducing a one‑time 5% excise tax on California residents and certain trusts with net worth of at least $1 billion. Anchored to rigid measurement dates, residency as of January 1, 2026, and valuation as of December 31, 2026, the initiative adopts sweeping definitions of taxable wealth, specialized valuation formulas for illiquid and closely held interests, and expansive reach to trusts tied to California residents. While the measure faces substantial political opposition, signature‑gathering hurdles, and near‑certain constitutional challenges, the article highlights how its design would force a narrow group of ultra‑high‑net‑worth taxpayers and their advisors to begin planning well before the ballot outcome is known. Beyond California, the proposal is framed as a potential template for other states, positioning the initiative as both a fiscal experiment and a possible catalyst for broader wealth‑tax adoption nationwide.
M&A Deals Requiring HSR Filings May Also Require Notice to the Department of War
The Department of War’s (DoW) February 2026 guidance breathes life into a previously dormant National Defense Authorization Act (NDAA) requirement, adding a new regulatory layer to Hart-Scott-Rodino (HSR)‑reportable M&A transactions that extends well beyond traditional antitrust review. By requiring contemporaneous notice to the DoW for deals involving defense‑directed business, critical technologies, defense industrial base sectors, or related intellectual property, the guidance significantly broadens the universe of transactions subject to national‑security scrutiny, often capturing both buyers and sellers, regardless of which party holds the defense nexus. With criteria described as non‑exhaustive and the possibility of supplemental information requests beyond standard HSR filings, the article underscores the need for dealmakers to integrate DoW analysis into early diligence, particularly through intellectual property (IP) audits and updated questionnaires. Together, the guidance signals a shift toward more proactive defense‑oriented oversight, transforming DoW notification from an obscure statutory obligation into a practical closing‑risk consideration for a wide range of transactions.
White House Unveils Framework for Artificial Intelligence Regulation
The Trump Administration’s National Policy Framework for AI advances a sweeping federal vision for AI regulation, urging Congress to preempt the growing patchwork of state laws with a uniform national standard. Building on last year’s executive order, the framework outlines priorities ranging from child protection and intellectual property rights to preventing censorship, supporting the AI workforce, and preserving U.S. leadership in innovation, while largely avoiding the creation of a new standalone AI regulator. Although its legislative path remains uncertain, the framework stakes out federal preemption as essential to American competitiveness and sets the parameters for the coming debate over nationwide AI governance.
Deals
Foley Guides Mojo AI in $10M Series B
Foley represented Mojo AI, a software developer building a globally mandated AI safety app for data center construction, in its $10 million Series B Funding round led by strategic investors Altira, Pelion Ventures, and Frame VC.
Foley Guides ORS Nasco, a Wynnchurch Capital Portfolio Company, in Acquisitions of AD Member Supply and Alliance Distribution Partners
Foley served as legal advisor to Wynnchurch Capital and portfolio company ORS Nasco in the acquisitions of assets associated with AD Industries Inc. and Alliance Distribution Partners LLC.
Foley Represents Geosimple in Seed Financing
Foley represented Geosimple, Inc., a vertical AI platform for real estate, in a seed financing led by KDX Fund.
Foley Represents CLARK in Reincorporation to Texas
Foley is serving as corporate counsel to Clark Material Handling Company, a privately held global corporation and Top 10 manufacturer of forklifts and spare parts, in its reincorporation from Delaware to Texas.
Foley Represents Brazilian Healthtech Startup Mevo in $18M Funding Round
Foley represented Mevo, Brazil’s leading e-prescription healthtech, in their $18 million funding round led by Prosus. Additional investors included Matrix, Jefferson River, and Floating Point.
Foley Represents Velocity One in Acquisition of Falls Filtration
Foley served as legal advisor to Velocity One, an aerospace and defense platform backed by leading middle-market private investment firm Charlesbank Capital Partners, in its acquisition of Falls Filtration Technologies Inc.
Foley Advises Archer Foodservice Partners, a Wynnchurch Capital Portfolio Company, in Acquisition of Sterno Foodservice Business
Foley served as legal advisor to Wynnchurch Capital and portfolio company Archer Foodservice Partners, a leading provider of foodservice consumables, in its agreement to acquire the foodservice business of SternoCandleLamp Holdings Inc from Compass Diversified (NYSE: CODI).
Additional Articles of Interest
Guyana’s Emergence as a Strategic Energy Powerhouse in a Volatile Global Oil Market
Susan Pravda Reflects on Leadership, Risk, and Resilience — ‘Trust Your Instincts’
Author
Louis Lehot
Partner, Venture Capital
Silicon Valley | San Francisco | Los Angeles
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