Friends,
In last month’s newsletter, we highlighted how startup‑on‑startup mergers and acquisitions (M&A) is accelerating heading into 2026, driven by artificial intelligence (AI)‑fueled competition, tighter fundraising conditions, and a rising initial public offering (IPO) bar that is pushing founders to pursue scale through strategic consolidation. We also highlighted the shifting power dynamic in dealmaking, with technical founders commanding premium pricing and terms amid rapid revenue growth and intense bidding for elite AI talent.
This month, we examine how 2026 Venture Capital (VC) trends are splitting the market, with software as a service (SaaS) and defense technology accelerating on AI adoption and federal spending while health technology and medical technology face weaker returns due to regulatory and clinical hurdles. We also examine how crypto companies, despite last year’s IPO volatility, are preparing new listings as stablecoin‑driven revenue and clearer oversight create a more favorable path to public markets.
SaaS and defense technology are positioned to outperform in 2026, with PitchBook projecting returns above the 21% cross‑sector median as capital flows toward categories tied to enterprise AI adoption and federal spending priorities. Defense technology nearly doubled its deal value to ~$50 billion in 2025 despite flat deal volume, while SaaS continues to disprove fears of an “AI‑native takeover” by rapidly embedding AI into existing platforms. Conversely, early‑stage medical technology and health technology are slipping below median returns, weighed down by scarce exits and heightened demands for clinical validation, U.S. Food and Drug Administration (FDA) visibility, and reimbursement pathways. The result is a market splitting in two: sectors delivering immediate return on investment (ROI) or aligning with national priorities are rewarded with larger checks and higher velocity, while regulated health care categories face a slower, more evidence‑driven path to capital.
Even after last year’s crypto IPOs cratered alongside bitcoin’s plunge, 2026 is shaping up to bring a new wave of listings, with Kraken, Consensys, and Ledger preparing the runway and late‑stage giants like Ripple keeping options open. The lesson from 2025’s debutantes is clear: public valuations remain tightly correlated to token price cycles, exposing pure‑play crypto models to sharp volatility. Still, PitchBook reports that industry leaders see an opening for “institutional‑grade” companies with stable, recurring revenue — especially those anchored in the fast‑growing stablecoin ecosystem, which behaves more like financial infrastructure than speculative trading. With federal agencies coordinating oversight, banks entering the stablecoin market, and crypto M&A at record highs, 2026 is poised to reward scale, diversified revenue, and regulatory readiness, while smaller, more cyclical players continue to seek shelter through consolidation.
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 Super Bowl Summit — The Innovation Playbook: Databricks
Super Bowl Summit — The Innovation Playbook: Databricks | February 4, 2026
Ahead of Super Bowl weekend in San Francisco, Foley partnered with Redwood Collective, Protiviti, and SVB to host an intimate Sidebar Summit that convened a standout group of founders, investors, and operators for a rare, behind‑the‑scenes conversation on scaling in the modern tech landscape. The program — anchored by a candid dialogue between Battery Ventures’ Dharmesh Thakker and NBA legend‑turned‑entrepreneur Chris Webber, moderated by Louis Lehot — offered attendees an uncommon look into the strategic decisions, capital discipline, and resilience that propelled Databricks toward its $100 billion valuation.
Across the room, discussions reflected the broader energy running through an already electric week in the Bay Area: leaders compared perspectives on the pressures of hyper‑growth, the evolving relationship between innovation and regulation, and the dynamics shaping today’s founder–investor alignment. The summit reinforced that some of the most consequential conversations in tech are unfolding not on the main stage but in curated forums like this — where ideas sharpen, partnerships take shape, and momentum builds.
Events
Upcoming:
SOLID Summit | March 5, 2026
Kelly Boyd will join the SOLID community for a candid, forward‑looking conversation on how AI is transforming the business of law. SOLID — long known for convening legal leaders, operators, technologists, and innovators — creates environments where honest dialogue drives sharper decisions, stronger teams, and more adaptive organizations. With a deep focus on the intersection of legal operations, technology, eDiscovery, privacy, compliance, talent, and now AI, the Summit will bring together senior voices who are reimagining how legal work gets done. The gathering promises meaningful exchange, practical insight, and a chance to connect with peers who are actively shaping the future of legal work.
Foley General Counsel Lunch Series — Legal AI | March 6, 2026
Foley is excited to host a private General Counsel (GC) lunch in Palo Alto for an engaging discussion on the fast‑evolving landscape of legal AI. Designed for in‑house leaders, the program will explore where the technology is headed, how firms are using it today across research, drafting, due diligence, e‑discovery, and knowledge management, and the risk considerations shaping adoption decisions. Speakers will also touch on key issues such as data governance, confidentiality, model accountability, bias, vendor selection, and emerging regulatory and litigation trends. Over lunch, attendees will have the chance to ask questions, share perspectives, and gain practical insight into how legal AI is shaping corporate legal strategy.
Fintech Forward: Strategy, Scale, and Success in a Rapidly Changing Market | March 10, 2026
Foley is a proud sponsor to this high‑demand fintech and AI event in San Francisco, bringing together 120+ founders, investors, and senior leaders to examine how AI is reshaping financial services. The program will feature a strong speaker lineup — including Foley’s Natasha Allen — who will join a panel discussing where real opportunities are emerging, how fintech companies are adapting, and what this generational technology shift means for strategy and growth. With a keynote by Crunchbase journalist Gene Teare and networking throughout the evening, attendees can expect practical perspectives on payments, platforms, and fintech infrastructure, along with candid conversation on the forces driving the industry’s next wave.
The CFO as Capital Architect: Funding Strategy in a New Market Era | March 11, 2026
Louis Lehot will moderate a timely capital markets discussion that examines how today’s rapidly changing funding landscape is reshaping the role of the CFO. With traditional models under pressure, new financing sources emerging, and digital capital markets redefining access to capital, the panel will explore how operators, investors, private equity firms, and family offices are approaching capital decisions across the full company lifecycle. Designed as a practical, real‑world dialogue, the session will help finance leaders better evaluate new capital sources, balance liquidity with long‑term investment, and align funding strategy with business transformation.
Ready for Anything: Preparing for IPOs, SPACs, and Unexpected Capital Market Shifts | March 12, 2026
Foley, LA Venture Association, Protiviti, SS&C Intralinks, and Nasdaq will host Ready for Anything: Preparing for IPOs, SPACs, and Unexpected Capital Market Shifts in Foley’s Los Angeles office, bringing together CFOs, finance leaders, GCs, PE operating partners, and emerging‑growth executives for a timely discussion on preparing for IPOs, SPACs, and shifting market conditions. Moderated by Louis Lehot, the session will feature Dan Angius of Nasdaq, Andrea Vardaro Thomas of Protiviti, and Michael Golomb of Blockstream as they explore narrow IPO windows, the evolving SPAC landscape, private‑market pressures, and dual‑track planning heading into 2026. The event will offer practical guidance on timing, pivots, and expectations across today’s volatile environment, followed by a networking reception with leaders from across the capital‑markets ecosystem.
Hard Things | March 19, 2026
Foley and Mavka Capital will launch Hard Things, a new series spotlighting the founders, investors, and innovators advancing Physical AI — the emerging shift from cloud‑based intelligence to AI embedded in machines, robots, and real‑world systems. The inaugural gathering will bring together leaders working across robotics, autonomous systems, AI‑driven manufacturing, and edge computing for candid conversations about what it truly takes to build and deploy intelligent hardware at scale. Designed as an intimate, high‑signal forum, Hard Things will serve as a recurring community dedicated to pushing the boundaries of what AI can accomplish in the physical world, featuring exceptional speakers and the kind of in‑the‑room dialogue that doesn’t happen anywhere else.
GCVI Summit Dinner | March 24, 2026
Foley is excited to host an exclusive private dinner during the 10th annual GCVI Summit, bringing together close friends and colleagues for an evening of conversation, great food, and wine. While the conference’s “rising stars” dinner takes place elsewhere, this gathering is designed as a warm, informal opportunity to reconnect, meet new faces, and enjoy time with the people who make GCVI one of our favorite annual traditions. The dinner will offer a relaxed setting to unwind after a full day at the Summit and continue the dialogue that defines this community.
2026 Tech Law Symposium | March 27, 2026
Foley is proud to sponsor the 2026 Tech Law Symposium, where industry leaders will unpack the latest trends, challenges, and opportunities shaping tech law. This one‑day program delivers practical insights on data privacy, cybersecurity, intellectual property, and emerging technologies, while offering valuable opportunities to connect with top professionals across the tech and legal communities. Whether you’re in‑house counsel, outside counsel, or a technology leader, the symposium provides the knowledge and tools you need to stay ahead.
Recent:
M&A / Transaction Summit & Ski Day | February 25, 2026
Foley co‑hosted an intimate M&A‑focused breakfast panel with Tanner, BMO, and HGGC, bringing together founders, operators, and deal‑makers for a morning of practical insights, real stories, and open discussion set against a dramatic mountain backdrop. The conversation explored the realities of the acquisition journey, followed by targeted networking that encouraged deeper connection. In the afternoon, attendees continued their dialogue on the slopes at Deer Valley Resort before gathering again at the lodge for appetizers, drinks, and relaxed conversation, creating a full‑day experience intentionally crafted to blend perspective‑sharing, relationship‑building, and time in the fresh mountain air.
Q1 2026 Fusion Expert Network (FXN) Dinner | February 25, 2026
Foley sponsored the Q1 2026 Fusion Expert Network (FXN) Dinner in Palo Alto, an intimate gathering designed to facilitate meaningful connections among institutional investors and senior leaders advancing the future of AI and health care innovation. The event brought together members of the FXN Network — including AI experts from OpenAI, Google, NASA, Meta, Apple, Tesla, and other influential organizations — alongside visionary Fusion Fund portfolio founders building next‑generation AI companies. Guests were also treated to a special appearance by Olympic gold medalist Kristi Yamaguchi, who joined the conversation and added to the evening’s energy. The dinner created a rare forum for candid cross‑disciplinary discussion, strategic relationship‑building, and insight-sharing among a select group of industry trailblazers.
Venture Capital Wine Dinner | February 12, 2026
Foley partnered with Customers Bank to host an intimate Venture Capital Wine Dinner that brought together founders, investors, and industry leaders for an evening centered on thoughtful conversation, great food, and standout California wines. Guests enjoyed a curated selection during a relaxed opening reception before transitioning into a seated dinner, creating an inviting atmosphere for genuine dialogue, new connections, and easy networking among peers shaping today’s venture landscape.
Cross Creek’s 2026 Mountain Mingle | February 5–6, 2026
Foley served as a sponsor of Cross Creek’s 2026 Mountain Mingle, a curated two‑day gathering in Park City that brought together founders, investors, and operators during Utah Tech Week. The experience began with an intimate private showcase at The Kimball Terrace, followed by an evening dinner at Empire Canyon Lodge that paired mountain‑casual ambiance with seamless logistics for guests. The next day, attendees headed to Deer Valley for group skiing, a hosted lunch at Silver Lake Lodge, and the inaugural Downhill Dash slalom race, creating an engaging atmosphere for new relationships, thoughtful conversations, and shared time on the mountain among leaders across the tech and venture ecosystem.
The Business of Sports | February 5, 2026
Foley was proud to co‑sponsor an exclusive gathering that brought together forward‑thinking investors, innovators, and athletes who are influencing the next era of sports, technology, finance, and entertainment. The program featured a lineup of dynamic discussions, highlighted by insights from Reggie Bush — College Football National Champion, Super Bowl Champion, and Heisman Trophy winner — alongside leaders from Comcast, PATH Water, StatusPRO, the Tennessee Titans, Hunterbrook Media, and others. Throughout the afternoon, speakers explored the shifting landscape of name, image, and likeness (NIL), the transformation of sports advertising, the rise of new leagues, and the increasing role of athlete‑led business ventures.
Asian American New Year Winter Gathering | February 5, 2026
Foley supported the Asian American New Year Winter Gathering, an intimate celebration that brought together Asian American and Pacific Islander (AAPI) founders and investors for meaningful connection and community. Hosted in the heart of the Bay Area’s tech landscape, the evening featured a curated Napa Valley wine‑tasting experience and created a welcoming setting for open dialogue, shared accomplishments, and genuine relationship‑building among leaders who navigate the distinct opportunities and challenges of the AAPI entrepreneurial journey.
Founder Match Night: A Utah Tech Week World Cup Mixer | February 4, 2026
Foley teamed up with Premara Group, Amplēo, and AllianceBernstein to host Founder Match Night during Utah Tech Week, transforming Calle’s downtown Salt Lake City headquarters into a vibrant hub of activity. The gathering blended friendly rivalry with community building, featuring a fast‑paced indoor 4v4 street‑soccer competition, FIFA battles, music, and plenty of food and drinks. The atmosphere encouraged founders, operators, and investors to connect in a casual, high‑energy setting just before the week’s broader tech programming. Inspired by the excitement building toward the 2026 World Cup, the event served as a fun kickoff that energized Utah’s innovation ecosystem and helped spark new relationships.
Thought Leadership
California Rolls Out New Venture Capital Diversity Reporting Requirements Part I
Part I frames California’s Fair Investment Practices law as a turning point for venture capital, shifting demographic transparency from optional to mandatory and extending California’s reach to any firm with a broad “California nexus” — even those headquartered elsewhere. With registration due March 1, 2026, and first‑year reporting due April 1, firms must assess now whether they fall under the statute’s expansive definition. Paired with the California Department of Financial Protection and Innovation’s (DFPI) forthcoming public database, Part I highlights how the law transforms founder‑level demographic reporting into a visible annual requirement, signaling the start of a more regulated era in which transparency becomes an operational expectation, not a voluntary gesture.
Learn More
California Rolls Out New Venture Capital Diversity Reporting Requirements Part II
Part II moves from applicability to mechanics, outlining the detailed compliance obligations that convert the law into a structured, recurring workflow. Covered firms must register with DFPI by March 1, 2026, deliver standardized surveys post‑investment, aggregate and anonymize founder responses, and file an annual demographic report each April 1 covering identity categories, diverse‑founder metrics, capital deployed, and portfolio company locations. With added requirements around fees, five‑year record‑retention, privacy obligations, and potential penalties of up to $5,000 per day, Part II underscores how California is operationalizing demographic reporting as a permanent regulatory duty across the venture ecosystem.
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California Rolls Out New Venture Capital Diversity Reporting Requirements Part III
Part III shifts into near‑term execution, emphasizing the immediate steps VC firms must take to prepare for 2026. Covered entities should begin collecting 2025 data now, integrate DFPI’s demographic survey into post‑funding processes, map which investments trigger survey obligations, establish tracking systems, and evaluate privacy and record‑retention frameworks as sensitive demographic data becomes part of their compliance stack. With DFPI registration due March 1, 2026 and reporting due April 1, Part III focuses on building repeatable, operational workflows — marking the transition from understanding the law to actively implementing it.
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Deals
Foley Advises AWH Partners on Acquisition of Hotel Trio Healdsburg, First Investment for Newly Launched Strategic Income Fund
Foley represented AWH in the acquisition of the 122-key, all-suite Hotel Trio Healdsburg in Healdsburg, California, a soft-branded Residence Inn and the only Marriott-branded property in northern Sonoma County.
Foley Guides Wincove Private Holdings to $300M Close of Fund II at Hard Cap
Foley served as legal advisor to Wincove Private Holdings, a private investment firm focused primarily on building market-leading industrial and infrastructure products and services companies, in the formation and final closing of Wincove Private Holdings II, L.P. (Fund II).
Foley Represents Uptiq in $25M Series B Funding
Foley represented Uptiq, an AI platform for financial services, in its recent $25 million Series B funding. The round was led by Curql, with participation from Silverton Partners, 645 Ventures, Broadridge, Green Visor Capital, Live Oak Ventures, First Capital, Epic Ventures, Tau Ventures, and Evolution VC.
Foley Advises Fast Forward Sports Group in Sale of Akron RubberDucks and Jacksonville Jumbo Shrimp to Prospector Baseball Group
Foley advised Fast Forward Sports Group in the sale of two Minor League Baseball franchises, the Akron RubberDucks and the Jacksonville Jumbo Shrimp, to Prospector Baseball Group (PBG). Major League Baseball approved the transactions on December 9, 2025.
Foley Represents Spektrum Labs in Series Seed Financing
Foley represented Spektrum Labs, an AI-first software developer that delivers proof of cyber resilience for cybersecurity and cyber insurance, in its series seed financing led by Danu Ventures.
Foley Represents NEA as a Lead Investor in Series B Funding for Kindred
Foley represented New Enterprise Associates (NEA) as a lead investor in the $40 million Series B funding round for Kindred, a global home-swapping platform. NEA was joined by Dylan Field, CEO of Figma, as co-lead investor.
Foley Represents Cordatus Capital in Red Dot’s Acquisition of ETAS
Foley served as legal advisor to Cordatus Capital as Red Dot Buildings, a Cordatus portfolio company, acquired regional industry leader in world-class manufacturing East Texas Architectural Sheetmetal (ETAS).
Foley Advises ILS Gummies in Strategic Growth Partnership
Foley served as legal advisor to ILS Gummies, a leading full-service manufacturer of gummy supplement products, on the formation of its strategic growth partnership with a group of institutional capital providers led by Edgehill Management alongside ECP Growth, Patriot Capital, and Providence Investment Partners.
Foley Represents AI Research Platform Arbor in Seed Funding Round
Foley represented Arbor, the AI research platform for enterprise operations, in its seed funding round. The round, which brings Arbor’s total raise to $6.3 million, was led by 645 Ventures with participation from Next Play Ventures, Chaac Ventures, Comma Capital, and notable angel investors.
Foley Represents Fieldguide in $75M Series C Funding Round
Foley represented Fieldguide, an AI-native accounting and audit platform, in its $75 million Series C funding round led by the growth equity group at Goldman Sachs Alternatives. Additional investors included new investor Geodesic and existing investors Bessemer Venture Partners, 8VC, and Thomson Reuters. The financing brings Fieldguide’s total funding to $125 million and values the company at $700 million.
Foley Represents Riot Platforms on Rockdale Land Acquisition and Landmark $1 Billion Data Center Lease with AMD
Foley represented Riot Platforms, Inc. (NASDAQ: RIOT), a Bitcoin-driven industry leader in the development of large-scale data centers and bitcoin mining applications, on its recent acquisition of approximately 200 acres in Rockdale, Texas, for total consideration of just under $100 million. The land acquisition was part of a series of transformative transactions that establish Riot’s data center business, with Foley also representing Riot in negotiations for a data center lease with Advanced Micro Devices, Inc. (NASDAQ: AMD).
Additional Articles of Interest
Foley Receives 2026 JD Supra Readers’ Choice Awards
Natasha Dempsey Assesses New California Venture Capital Diversity Reporting Law
Andre Thioller Weighs in on Scaled-Back Brazilian Fintech IPO
Louis Lehot Featured for Insights on Evolution of Dealmaking
Author
Louis Lehot
Partner, Venture Capital
Silicon Valley | San Francisco | Los Angeles
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