The enterprise software landscape has shifted dramatically. In just a few months, the narrative moved from “AI is a bubble” to “AI will destroy software.”

At Sapphire, we believe: AI is Software.

Our 2026 Software x AI Report examines how this platform shift is reshaping venture funding, private market scale, public market valuations, and the exit environment. This year’s report analyzes the data behind the volatility and outlines the opportunity ahead.

Inside the Report:

• A data-driven breakdown of global VC funding trends, including capital concentration and category-level allocation across enterprise software
• A deep analysis of AI-native investment about how funding is distributed across models, infrastructure, platforms and applications
• An examination of private company scale and how round sizes, valuations and capital intensity have evolved
• A look inside the secondary market, including liquidity dynamics, pricing dispersion,and IPO timelines
• A close look at public market valuation growth, margins and multiple compression across software indices amid AI disruption fears

AI is now both the primary growth engine and the primary disruption risk in software.

Download the full report to understand where capital is flowing, how markets are repricing risk and what it takes to compete in the AI era.

Reach out to Steve Abbott (steve@sapphireventures.com) or Kevin Burke (kburke@sapphireventures.com) with any thoughts or questions.