Early-stage investment volume rose 19 percent; AI and climate tech grew their share while fintech's share fell.
Every year the Sarmal Ventures investment team prepares a data note twice, based on applications in its own database and market observations. The summary below covers early-stage (pre-seed, seed and Series A) startup investments in the first six months of 2026. The figures are compiled from 590 applications to Sarmal, conversations with 31 co-investors and open-source investment announcements.
The big picture
- Early-stage investment volume rose 19 percent compared with the first half of last year
- The number of rounds rose 7 percent; average round size increased 11 percent
- The median seed round was USD 1.1 million and the median Series A USD 4.2 million
- Foreign investors took part in 46 percent of rounds (38 percent last year)
Sector distribution
AI startups rose to first place by number of rounds and attracted 21 percent of total investment. Climate tech was second with 12 percent; carbon accounting and energy efficiency startups stood out because of the EU carbon border regulations. Fintech's share fell from 24 to 17 percent, but SME financing and B2B payment solutions kept growing solidly. Gaming took 9 percent and digital health 8 percent.
Founder profile
At least one woman founder is present in 27 percent of applications, up from 22 percent a year earlier. Forty-one percent of founders have previously worked in or started another startup. In deep-tech startups, the share of founders with an academic background reaches 63 percent.
Valuations and terms
The median pre-money valuation in seed rounds is USD 6.4 million. Founder-friendly standard terms are spreading: a 1x non-participating preference, broad-based weighted average anti-dilution protection and four-year vesting are now used in 81 percent of rounds.
What do we expect?
We see two main trends in the second half. First, valuations in AI startups are becoming more closely tied to revenue: investors now look not only for technology but also for proven customer usage. Second, the metrics required for the next round (Series A) are rising: in 2024 USD 1.2 million in annual recurring revenue was enough, whereas today the threshold is close to USD 2 million.
All data in this note is for information only and is not investment advice. The methodology document is in the Reports and Documents section.
Method and limitations
The data note is based on declarations in applications to Sarmal and market announcements; because not all rounds are public, actual volume may be higher than these figures. Sector classification follows the primary field of activity declared by the startup. When the method changes, earlier periods are recalculated to keep comparisons consistent.