As our Crystal Ball series continues, it\u2019s time to drill down into specific sectors.\u00a0<\/p>\n
Term Sheet readers, generally speaking, are an optimistic bunch. But there\u2019s a lot of concern about whether we\u2019re prepared to meet growing cybersecurity risks, with one reader predicting that even Fortune 500 CEOs will be in the crosshairs as high-stakes breaches materialize.\u00a0<\/p>\n
AI, of course, is at the center of these escalating cybersecurity risks, and at the changes that are happening in industries like robotics and healthcare. But some industries, like fintech and crypto, have created their own waves of transformation and possibility.\u00a0<\/p>\n
Without further ado (since you all had quite a lot to say) here\u2019s what Term Sheet readers see ahead across the business landscape.\u00a0<\/p>\n
Note: Answers have been edited for clarity and brevity.<\/p>\n
The cybersecurity stakes hit an all-time high<\/strong><\/p>\n Cyberwar is no longer a future threat \u2013 it\u2019s the present reality, with nation-states like China and Russia pursuing coordinated, long-term strategies that align with their geopolitical goals. \u2014Snehal Antani, CEO and cofounder, Horizon3.ai<\/p>\n Trust becomes an engineering requirement, not a marketing message. Black-box AI will hit a wall in regulated industries. \u201cMostly correct\u201d is not good enough when wrong answers carry real consequences. \u2014Joel Hron, Thomson Reuters CTO<\/p>\n In 2026, AI browsers will move fully into an ask-and-act model, changing how people interact with the web. This convenience introduces new security risks. \u2014Etay Maor, vice president, threat intelligence, Cato Networks<\/p>\n In 2026, we\u2019ll see the first major enterprise breach caused by an AI agent behaving in unexpected ways. As autonomous systems become more deeply embedded in operations, emergent behavior will create a new class of cyber risk. \u2014Aaron Jacobson, partner, NEA<\/p>\n By the end of 2026, we will see at least three Fortune 500 CEOs lose their roles explicitly due to AI system failures that their organizations cannot explain, reproduce or defend post-incident. Unlike past outages tied to infra or human error, these failures will stem from opaque AI decision paths. \u2014Sameer Agarwal, cofounder and CTO, Deductive AI<\/p>\n Fintech and crypto at a crossroads<\/strong><\/p>\n In 2026, stablecoins will just be part of your next app update on your phone. The next major app to be powered by stablecoins is one you\u2019re already using. \u2014Itai Turbahn, CEO and cofounder, Dynamic\u00a0<\/p>\n Crypto credit cards will bridge the gap between traditional and digital finance in 2026. This transition will position exchanges to be comprehensive financial hubs that could compete with traditional banks and fintechs, rather than just a digital asset platform. \u2014Matthew Goldman, founder, Totavi<\/p>\n Banks will lose more mass affluent customers to fintechs in 2026 than ever before. It used to be that fintechs served the customers Banks didn\u2019t want. The less affluent. The young. Now fintechs have grown up and so have their customers. \u2014Rex Salisbury, founder and general partner, Cambrian<\/p>\n Stablecoins have proven blockchain\u2019s first killer app beyond store of value, regulation is clarifying, and institutions are finally entering the space \u2013 setting up 2026 and 2027 as some of the strongest blockchain venture vintages yet. The irony? Most LPs will sit this out, distracted by Bitcoin\u2019s volatility theatrics and the AI gold rush. By the time the noise clears, the best funds will have been raised and committed. \u2014Aaron Miller, head of global venture capital, CF Private Equity\u00a0<\/p>\n As C.S. Lewis wrote, \u201cThere are far, far better things ahead than any we leave behind.\u201d For financial services, the year ahead will prove it. \u2014Sarah Biller, cofounder, Fintech Sandbox<\/p>\n The future of healthcare and its many offshoots<\/strong><\/p>\n AI will discover at least one groundbreaking pharmaceutical that will start Phase I clinical trials. \u2014Kanyi Maqubela, managing partner, Kindred Ventures:<\/p>\n The American consumer is more diverse than ever, and we are aging \u2013 by 2030 Americans over 65 will outnumber those under 18 for the first time in U.S. history. In 2026 we will see more investor activity into these areas, such as menopause, longevity medicine, elder care, and more. \u00a0\u2014Erin Harkless Moore, managing director of investments, Pivotal Ventures<\/p>\n In 2026, rising healthcare costs and continued strain on the nation\u2019s public health infrastructure will act as a powerful catalyst across the industry. Employers, insurers, health systems and providers will all feel the pressure, setting off a ripple effect that is likely to accelerate dealmaking. \u2014Amanda Zablocki, partner, co-leader of national healthcare team, Sheppard Mullin<\/p>\n 2026 will be the year AI feels clinically real. With tools like OpenEvidence already adopted by nearly half of U.S. physicians, healthcare is moving faster than software. AI \u201ccolleagues\u201d aka digital nurses, doctors, and copilots will eliminate non-clinical work and personalize care at scale. The next healthcare revolution won\u2019t come from hospitals or insurers, it\u2019ll come from AI workflows physicians already trust. \u2014Latif Peracha, general partner, M13<\/p>\n In 2026, the next wave of healthcare transformation will happen at home. As reimbursement pressures mount, providers will increasingly turn to home-based care models that pair automation with intelligent, agentic AI workflows. \u2014Irem Rami, Partner, Norwest<\/p>\n Demographics don\u2019t lie: the caregiver-to-patient ratio will continue collapsing. Leading systems will begin preparing for the 2030 reality by investing in models that extend human touch without requiring more humans. Expect more deliberate reliance on recovery support partners, proactive monitoring, and simplified patient pathways. \u2014Kyle Cooksey, CEO, Deacon Health<\/p>\n The next big consumer-health category isn\u2019t new or exotic. It\u2019s fiber. Gut health is going mainstream, GLP-1s are reshaping eating habits, and 90 percent of adults still don\u2019t get enough daily fiber. The brands that approach fiber with science-forward messaging, innovation, and real consumer education to build daily habits will win this underserved market. \u2014Lisa Wu, partner, Norwest<\/p>\n Defense and robotics<\/strong><\/p>\n 2026 will see the return of the Valley of Death to defense tech as the law of large numbers forces growing companies to seek larger and larger contracts in the context of a slow-growing defense budget. \u2014Peter Wilczynski, CPO, Vantor<\/p>\n Dual\u2011use deep tech continues its shift from niche to mainstream. For many years, defense was a difficult category for venture capital. That\u2019s changing fast as governments recognize these firms are essential to sovereignty and resilience\u2014global military expenditures are growing at their highest rates since the Cold War. We expect dual\u2011use companies to become some of the most attractive growth stories in 2026. \u2014Nic Brathwaite, founding managing partner, Celesta Capital<\/p>\n Defense tech investing will continue to gain momentum globally. The continued conflicts in Ukraine and Gaza have convinced the EU to invest almost a trillion dollars to rearm themselves and ensure a sovereign defense posture. \u2014Brad Harrison, managing partner, Scout<\/p>\n In 2026, aerospace and defense investing is primed to accelerate further with more investors entering the sector and deal structures broadening across dual-use and mission-critical technology. The full force of that upswing is highly dependent on U.S. defense contracts rolling again. \u2014Anita Antenucci, founder and managing partner, 3Wire<\/p>\n AI starts to hit the physical world: robots begin to move out of the lab and ship the first production-ready, end-to-end systems into biopharma labs, manufacturing lines, and logistics warehouses. Not prototypes. Not pilots. Revenue-generating deployments that deliver ROI. \u2014Talia Goldberg, partner, Bessemer Venture Partners<\/p>\n Robotics reaches escape velocity, and the real boom hits in 2027. 2026 marks the rapid emergence of a unified robotics market. The true mainstream adoption wave \u2014 warehouses, micro-factories, home services\u2014hits in 2027 as platforms stabilize. \u2014Anders Ranum, partner, Sapphire Ventures<\/p>\n Silicon Valley is shifting its attention back to hardware as demand for compute and energy accelerates. Chips, energy systems and critical physical infrastructure are reemerging as the engines of the next wave of progress. Robotics is set to become one of the most important innovation arenas as we move toward 2026. \u2014Luke Pappas, partner, NEA<\/p>\n We think 2026 will be the year where we start to see deployments of this new generation of AI-driven robotic systems in industrial (manufacturing and logistics) settings and service industries such as hospitality and healthcare. \u2014Emily Zhao, principal, Salesforce<\/a> Ventures<\/p>\n See you tomorrow,\u00a0<\/p>\n Allie Garfinkle Joey Abrams curated the deals section of today\u2019s newsletter. Subscribe here<\/a>.<\/p>\n VENTURE CAPITAL<\/p>\n – Soley<\/b> Therapeutics<\/b><\/a>, a South San Francisco, Calif.-based drug discovery and development company, raised $200 million in Series C funding. Surveyor<\/b> Capital<\/b> led the round and was joined by HRTG<\/b> Partners<\/b>, RWN<\/b> Management<\/b>, and existing investors.<\/p>\n – Corsera<\/b> Health<\/b><\/a>, a Boston, Mass.-based cardiovascular health prediction and prevention platform, raised $80 million in Series A funding. Forbion<\/b> and Population<\/b> Health<\/b> Partners<\/b> led the round and were joined by others.<\/p>\n – Mediar<\/b> Therapeutics<\/b><\/a>, a Boston, Mass.-based developer of therapies designed to stop fibrosis, raised $76 million in Series B funding. ICG<\/b> Life<\/b> Sciences<\/b> and Amplitude<\/b> Ventures<\/b> led the round.<\/p>\n – Blackbird.AI<\/b><\/a>, a New York City-based developer of an AI model designed to identify narrative threats to companies, raised $28 million in funding from Ten Eleven Ventures<\/b>, Dorilton<\/b> Ventures<\/b>, and others.<\/p>\n – Luminate<\/b><\/a>, a Galway, Ireland-based at-home cancer treatment company, raised $21 million in Series A funding. ARTIS<\/b> Ventures<\/b> and Lachy<\/b> Groom<\/b> led the round and were joined by Western<\/b> Alliance<\/b> Life<\/b> Sciences<\/b> and existing investors 8VC<\/b>, Y<\/b> Combinator<\/b>, Atlantic<\/b> Bridge<\/b>, and others.<\/p>\n – Autonomous<\/b> Technologies<\/b> Group<\/b><\/a>, a New York City-based developer of AI agents designed to serve as financial advisors, raised $15 million in pre-seed funding from Y<\/b> Combinator<\/b>, Collaborative<\/b> Group<\/b>, Fusion<\/b> Fund<\/b>, and others.<\/p>\n – Biographica<\/b><\/a>, a London, U.K.-based company using AI to decode crop genetics, raised \u00a37 million ($9.4 million) in seed funding. Faber<\/b> VC<\/b> led the round and was joined by SuperSeed<\/b>, Cardumen<\/b> Capital<\/b>, The<\/b> Helm<\/b>, EQT<\/b> Foundation<\/b>, Sie<\/b> Ventures<\/b>, and existing investors.<\/p>\n – AgileRL<\/b><\/a>, a London, U.K.-based developer of AI training, tuning, and deployment company, raised $7.5 million in funding. Fusion<\/b> Fund<\/b> led the round and was joined by Flying<\/b> Fish<\/b>, Octopus<\/b> Ventures<\/b>, Entrepreneur<\/b> First<\/b>, and Counterview<\/b> Capital<\/b>.<\/p>\n – Oasys<\/b><\/a>, a New York City-based developer of an AI-powered operating system for behavioral health, raised $4.6 million in funding from Pathlight<\/b> Ventures<\/b>, Twine<\/b> Ventures<\/b>, Better Ventures<\/b>, and 1984 Ventures<\/b>.<\/p>\n PRIVATE EQUITY<\/p>\n – Arxis<\/b>, a portfolio company of Arcline<\/b> Investment<\/b> Management<\/b>, acquired Micro-Tronics<\/b><\/a>, a Tempe, Ariz.-based producer of components for aerospace and defense applications. Financial terms were not disclosed.<\/p>\n – Atar<\/b> Capital<\/b> acquired DataMaster<\/b> Online<\/b><\/a>, a Saint-Gr\u00e9goire, France-based printing solutions company. Financial terms were not disclosed.<\/p>\n – ATL<\/b> Partners<\/b> acquired SkyMark<\/b> Companies<\/b><\/a>, a Kansas City, Mo.-based manufacturer of aircraft fueling trucks and hydrant dispensers, and Rampmaster<\/b><\/a>, a Coatesville, Pa.-based manufacturer of aircraft refueling solutions. Financial terms were not disclosed.<\/p>\n – AxioAero<\/b> Group<\/b>, a portfolio company of CORE<\/b> Industrial<\/b> Partners<\/b>, acquired Airway<\/b> Aerospace<\/b><\/a>, a Doral, Fla.-based airplane repair company. Financial terms were not disclosed.\u00a0<\/p>\n – Gemspring<\/b> Capital<\/b> acquired TRG<\/b><\/a>, a Cleveland, Ohio-based provider of enterprise mobility and technology lifecycle management solutions. Financial terms were not disclosed.<\/p>\n – Gryphon<\/b> Investors<\/b> announced a majority recapitalization of Fortreum<\/b><\/a>, a Lansdowne, Va.-based cybersecurity firm. Financial terms were not disclosed.<\/p>\n – Kelvin<\/b> Group<\/b>, backed by Southfield<\/b> Capital<\/b>, acquired PermaCold<\/b> Engineering<\/b><\/a>, a Portland, Ore.-based ammonia and carbon dioxide refrigeration system company. Financial terms were not disclosed.<\/p>\n – PestCo<\/b> Holdings<\/b>, a portfolio company of Thompson Street Capital Partners<\/b>, acquired Bio-Tech Pest Control<\/b><\/a>, a Spring, Texas-based pest control company. Financial terms were not disclosed.<\/p>\n – Proven<\/b> Optics<\/b>, a portfolio company of Silversmith<\/b> Capital<\/b> Partners<\/b>, acquired brightfin<\/b><\/a>, a Centennial, Colo.-based developer of Service Now Technology Expense Management and digital workplace solutions. Financial terms were not disclosed.<\/p>\n – PureStar<\/b>, backed by Cornell<\/b> Capital<\/b>, acquired Emerald<\/b> Textiles<\/b><\/a>, a San Diego, Calif.-based health care linen services provider. Financial terms were not disclosed.<\/p>\n – TA<\/b> Associates<\/b> acquired a majority stake in OneSource Virtual<\/b><\/a>, a Dallas, Texas-based provider of HR payments services for the Workday ecosystem. Financial terms were not disclosed.<\/p>\n – The<\/b> Blackhawk<\/b> Group<\/b>, backed by New<\/b> State<\/b> Capital<\/b>, acquired Silver<\/b> Sky<\/b> Aviation<\/b><\/a>, a Wasilla, Ak.-based aircraft maintenance company. Financial terms were not disclosed.<\/p>\n EXITS<\/p>\n – A. O. Smith<\/b> acquired Leonard<\/b> Valve<\/b><\/a>, a Cranston, R.I.-based water temperature control valve company, from Bessemer<\/b> Investors<\/b>. Financial terms were not disclosed.<\/p>\n – Service<\/b> Express<\/b>, a portfolio company of Warburg<\/b> Pincus<\/b>, acquired Park<\/b> Place<\/b> Technologies<\/b><\/a>, a Cleveland, Ohio-based IT infrastructure services company, from GTCR<\/b> and Charlesbank<\/b>. Financial terms were not disclosed.<\/p>\n IPOS<\/p>\n – Aktis Oncology<\/b><\/a>, a Boston, Mass.-based biotech company focused on solid tumors, now plans to raise up to $318.6 million in an offering of 17.7 million shares priced between $16 and $18 on the Nasdaq. The company posted $6 million in revenue for the year ended Sept. 30. MPM<\/b> BioImpact<\/b>, Vida<\/b> Ventures<\/b>, EcoR1<\/b> Capital<\/b>, and Blue<\/b> Owl<\/b> Capital<\/b> Holdings<\/b> back the company.\u00a0<\/p>\n FUNDS + FUNDS OF FUNDS<\/p>\n – Warburg<\/b> Pincus<\/b><\/a>, a New York City-based private equity firm, raised $3 billion for its third fund focused on financial services companies.<\/p>\n
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