State of
Private Markets
Q1 2026

Q1 highlights

• AI crosses 60% of capital:AI crosses 60% of capital Over 60 cents of each dollar of venture capital investment on Carta in Q1 2026 went to AI companies, the highest share recorded to date.Over 60 cents of each dollar of venture capital investment on Carta in Q1 2026 went to AI companies, the highest share recorded to date. Foundational model companies specifically drove much of this, accounting for 14.2% of total capital and nearly a quarter of AI capital. In SaaS, 83% of capital went to AI startups.
• Down rounds at historical lows:Down rounds are low The down-round rate fell to 11.4% in Q1. This is back in line with 2019 and 2020 levels.The down-round rate fell to 11.4% in Q1. This is back in line with 2019 and 2020 levels. Before the bull market, before the reset, before the recovery. The three-year hangover from the valuation lows of 2022 may now be in the past.
• Series B and Series C valuations rising:Series B & Series C vals rising While early-stage primary valuations softened, Series B and Series C primary pre-money valuations are up 17.2% and 12.5%, respectively, since Q1 2025.While early-stage primary valuations softened, Series B and Series C primary pre-money valuations are up 17.2% and 12.5%, respectively, since Q1 2025. This may be because AI companies are maturing and moving toward later stages after promising early wins.
• New this quarter:New this quarter Three side-by-side tables breaking out non-AI, AI applied, and AI foundational model companies across every stage from seed to Series E+. Post-money valuation, round size, and pre-money valuation. Q1 2025 versus Q1 2026. The clearest picture yet of how differently these three categories are being priced right now.