Educational only — not investment, legal or tax advice.

The numbers are hard to ignore. Crunchbase reported that more than 70% of global startup capital in the second quarter of 2026 went to AI-focused companies, up from just under 50% a year earlier. Two companies, OpenAI and Anthropic, accounted for $217 billion, or 43%, of all startup funding in the first half.

If you are building something that isn’t AI, it can feel like the market has no room for you. It does, but you need a sharper case than you would have needed a few years ago.

Read the headline carefully

A large share of those dollars went into a small number of enormous rounds. That inflates the AI percentage without meaning that every non-AI seed round has disappeared. The useful question is not “what share of dollars went to AI” but “are investors in my stage and sector still writing cheques?” Look at recent rounds in your category, not the global total.

Five ways to raise anyway

1. Don’t fake it. Calling a normal software product “AI-powered” in your deck is easy to see through, and it invites questions you can’t answer well. Investors trust founders who describe their business accurately.

2. Show how AI makes you better, not what AI you build. A company that uses AI tools to run with a smaller team, faster sales cycles or lower support costs has a margin story. Investors like margin. Put the numbers in the deck.

3. Target investors outside the AI rush. Many funds have mandates in climate, health, fintech, consumer, industrial or regional ecosystems. They still need to deploy capital, and they face less competition for good deals.

4. Lean on efficiency. In a market where capital is concentrated, a company that grows without huge burn is easier to fund. A low burn multiple can be a stronger signal than a buzzword.

5. Consider non-dilutive and alternative capital. Grants, government innovation programs and revenue-based financing can extend your runway until your traction speaks for itself.

What investors will ask you

• Why is this a big business without AI at its core?
• Could an AI-native competitor do this cheaper or faster? What stops them?
• How are you using AI internally to stay efficient?

Have crisp answers to all three before your first meeting.

From the investor’s side of the table

I have worked on rounds in SaaS, CleanTech, HealthTech and Energy as well as AI. In every sector, the founders who raised well could explain in one sentence why their company wins, and showed numbers that backed it up. A clear case still beats a fashionable label.

The short version

AI is taking most of the money, not all of it. Be honest about what you build, show efficiency, and pitch the investors whose mandate fits you.

Sources

• Crunchbase News: Global startup investment hit record $510B in H1 2026 (2 Jul 2026)
• Crunchbase News: Jumbo-sized Series A rounds are on the rise (23 Sep 2026)

Written by Fabian Cisneros. Educational only — not investment, legal or tax advice. See the full disclaimer.