Venture Capital Shifts From Hype to Value, Policy Support Crucial for Private Capital, Say Experts

Venture Capital's Pivot: From Buzz to Bottom Line

I've been watching the venture capital landscape evolve, and this piece really captures the exciting transition happening right now. Globally, we're seeing a clear reallocation of funds toward tech-driven essentials, with AI, software, and generative AI gobbling up nearly half of all VC dollars last year – up significantly from just a few years ago. What's even more telling is how investors are zeroing in on practical applications rather than flashy foundational tech, prioritizing quicker returns and reduced risks.

Valuations are grounding themselves, dropping back to more realistic multiples that make sense for sustainable growth. Experts like Dr. Apoorva Ranjan Sharma highlight how 2026 could be the year AI truly embeds into everyday business operations, from supply chains to decision-making, pushing companies to prove their worth through solid execution and profitability.

In India, the recovery is steady and smart, with investments surging but focused on efficient models. The article stresses the need for smart policies – think extending incentives for emerging tech like AI and robotics, and even bringing back accelerated depreciation to spark manufacturing growth. As Sameer Gupta from EY points out, tax stability and targeted support are key to drawing in more private capital.

For founders, the message is clear: show me the margins, the path to breakeven, and do more with less. VCs are doubling down on fewer, deeper bets. This shift from hype to value feels like a healthy reset, rewarding real innovation over speculation.

Dive into the full article to see the data and expert insights that back this up – it's a must-read for anyone navigating today's investment waters.