Navigating venture capital in 2026: insights for fund managers

After a challenging period, the venture capital market started to regain momentum in 2025, but the recovery hasn’t been the same across the board. We’re seeing capital flow back in, valuations on the rise and exit activity picking up. However, most of this growth is happening within a select group of later-stage, tech-driven businesses. For many fund managers, it doesn’t feel like a widespread rebound, rather a market defined by sharp contrasts and shifts. 

Across both Europe and Asia, this selectivity is reshaping how funds operate. Larger rounds are attracting corporate and private capital, valuation expectations are under closer scrutiny and exit strategies require greater flexibility as the gap between private and public markets continue. 

In this environment, operational discipline matters as much as investment strategy. Fund managers are navigating more complex structures, more demanding investors and more varied liquidity pathways, which is placing greater emphasis on the role of experienced administration and integrated support. 

Late-stage AI is driving value but increasing operational risk 

• In Europe, venture capital (VC) valuation growth in 2025 was heavily concentrated at the top end. Series E+ (the fundraising stage of maturity, pre-IPO or strategic exit phase) median valuations surged to around €1.4 billion, while early fundraising stage pricing rose only modestly 
• AI driven step ups were strongest in later rounds of fundraising, reflecting capital concentration and "winner-takes-most" dynamics 
• Across Asia in 2025, a similar pattern emerged. Large AI and deep tech rounds in China, India, Singapore and Japan were led by sovereign, strategic and corporate capital, while broader early-stage ecosystems remained selective 

Nontraditional capital is reshaping deal structures globally 

• Nontraditional investors accounted for 77.8% of European VC deal value in 2025, according to Pitchbook's 2025 VC report. This was led by Corporate Venture Capital (“CVC”) and private equity participation in AI, SaaS and deep tech. 
• These investors are typically concentrated in larger rounds and bring structured terms, strategic rights and co-investment layers. 
• In Asia, corporate and sovereign capital continues to dominate late-stage growth, particularly in strategic sectors such as semiconductors, climate tech and advanced manufacturing. 

Liquidity is improving, but the public / private gap remains a constraint 

• European median exit valuations reached a record €37 million in 2025 according to the Pitchbook VC report. 
• However, the valuation gap between public and private markets remains wide, with post-IPO performance lagging and some listings priced below the last private round. 
• Asia mirrors this trend, reopening IPO windows in markets such as Hong Kong, Japan and India are selective, and secondary transactions, continuation vehicles and strategic M&A are increasingly important liquidity tools. 

Regional divergence increases the need for operational scale 

• European valuation resilience is concentrated in specific regions and sectors, while others remain sensitive to capital conditions. 
• Asia's venture recovery is similarly uneven, with strong momentum in India and Japan, more selective capital in Southeast Asia and state driven cycles in China. 

What does this mean for VC fund managers in 2026? 

Later‑stage deals, especially those driven by AI and deep tech, now involve more complex valuation methods and deal structures, which means fund managers need clearer valuation processes and better preparation for investor questions. As capital concentrates in larger rounds backed by corporate, sovereign and private investors, terms are becoming more layered, often including structured rights and co‑investment arrangements that require careful coordination across teams and jurisdictions. 

At the same time, exit planning has become far less linear. IPOs, strategic M&A, secondaries and continuation vehicles are all realistic options, and managers increasingly need to plan for several of these routes at once. This adds operational pressure, particularly when timelines shift or investor preferences change. 

Regional differences across Europe and Asia also mean that fund managers must ensure their reporting, governance and communication processes work consistently across markets. With capital conditions and exit windows varying by country, having aligned processes, rather than separate regional approaches, helps avoid delays and mismatches. 

All of this contributes to a broader shift: operational setup is now as important as investment judgement. Managing multi‑entity structures, meeting investor expectations and navigating multiple liquidity paths requires teams, systems and information flows that are organised, reliable and able to handle higher complexity than before. 

Where can Ogier Global add value for VC fund managers? 

Ogier Global, Ogier's corporate and fiduciary division, delivers comprehensive fund administration services for VC fund managers. This includes support, complex waterfall modelling and integrated assistance with Ogier's law firm, ensuring compliance with LP, audit and regulatory requirements. 

We administer multi-vehicle structures, co-investments, SPVs and CVC partnerships through a single, integrated platform across Europe and Asia, offering end-to-end support from pre-exit data readiness and investor communications to distribution mechanics and post-transaction vehicle management. Our unified operating model across European and Asian jurisdictions enables fund managers to scale globally without increasing operational risk. 

The bottom line and key takeaways  

The venture capital market in 2026 is not broadly buoyant, it is selectively strong and structurally more complex. Capital concentration, non-traditional investors and multiple exit pathways are raising the operational bar for fund managers. 

In this environment, fund administration further emerges from a back- office function to a strategic enabler, helping fund managers demonstrate valuation discipline, manage complexity and execute liquidity with confidence. 

Ogier Global is focused on giving fund managers the operational certainty they need to perform in a market where precision, transparency and execution matter more than ever. 

To learn more about how Ogier Global's Fund Administration team can support your investment goals, contact our team below.

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Disclaimer

This client briefing has been prepared for clients and professional associates of Ogier. The information and expressions of opinion which it contains are not intended to be a comprehensive study or to provide legal advice and should not be treated as a substitute for specific advice concerning individual situations.

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