Walking the halls of Web Summit in Lisbon, the buzz is deafening, and one acronym dominates: AI. But as thousands of founders chase funding, a different reality is setting in. Investors are looking past the hype for something more durable.
The AI 'Tax' and the Search for Real Assets
Artificial intelligence
isn't just a buzzword; it’s a baseline expectation. A recent Web Summit survey found that 55% of tech workers feel AI sharpens their thinking, but it has also increased workloads for 60% of them. For investors, this translates to an 'AI tax'—the high computational and talent costs required to compete. While a startup with a '.ai' domain might get a meeting, the conversation quickly moves to defensibility. Venture capitalists at the Lisbon event are now asking tougher questions, shifting from 'What's your AI strategy?' to 'What do you own that can't be copied?'. The market has learned that a thin wrapper around a public model is not a business moat. As a result, valuations for AI-native companies are increasingly tied to protected intellectual property, like patents and proprietary data sets, which can command valuation premiums of 15-20%.
Traction and Unit Economics Still Rule
Amid the scramble for AI dominance, a timeless principle is making a powerful comeback: proof. Investors are prioritizing real, measurable traction over speculative roadmaps. They want to see user growth, customer retention, and, most importantly, a clear path to profitability. Even for non-AI companies, the bar for proof is higher. Data from early 2026 shows that while the median Series A for a non-AI SaaS company was a healthy $55 million, the funding depended on demonstrating strong growth and efficiency. The key metrics being scrutinized on investors' laptops at Web Summit are customer acquisition cost (CAC), lifetime value (LTV), and burn multiple. A founder who can prove their business model is sustainable—showing they can acquire and keep customers profitably—will earn a far higher valuation than one with a visionary AI demo but leaky financial metrics.
The Undeniable Value of the Founder
In a world where technology can be commoditized faster than ever, investors are placing a premium on the one asset that can't be replicated: the founding team. Especially for companies building things in the physical world—dubbed 'atoms instead of code'—investor belief is often placed in the team’s resilience and domain expertise long before the product is perfect. VCs are looking for founders who demonstrate not just a vision, but an ability to navigate complex challenges, from supply chains to regulatory hurdles. This 'founder factor' is about credibility and grit. An experienced team that has successfully built and sold companies before, or one that possesses rare, industry-specific knowledge, can command a higher valuation because they de-risk the investment. At an event like Web Summit, where investors meet hundreds of founders, the ability to convey that deep expertise and trustworthiness in a short meeting is invaluable.
Solving a Real-World Problem
The most successful startups, both with and without an AI focus, are those that solve a massive, tangible problem. While a record 81% of venture funding in early 2026 went to AI-related companies, the remaining 19%—a stillstaggering $58 billion—flowed to sectors like robotics, fintech, and digital health. What these funded companies have in common is a focus on defensible solutions for specific industries. For example, fintech startups with proprietary data or regulatory licenses are attracting capital, while more easily copied consumer apps are not. Similarly, capital is moving toward companies focused on physical systems, like defense autonomy and semiconductors. Investors at Web Summit are actively looking for this vertical focus. They want to see startups that are not just building technology for technology's sake, but are applying it to create undeniable value in a large, wellndefined market.
