FGV Capital Says AI Reshapes Startup Funding and Scale

Early-stage startups once had to use their first institutional checks to hire engineers and product teams before customer demand was fully tested. AI is changing that sequence by accelerating coding, testing and marketing, giving founders more runway to refine their market entry, establish product-market fit and demonstrate traction before expanding headcount or seeking another round. FGV Capital says the shift also raises the bar for venture firms, which must offer operating expertise and distribution support as capital becomes increasingly commoditized.

FGV Capital co-founder and managing partner Marcos Fernandez said on Aug. 26, 2026, that multibillion-dollar investment platforms moving into seed deals are helping drive rounds of $20 million, $30 million or even $40 million, along with higher valuations. He cautioned that customer traction, disciplined fundraising and a sound cap table remain more important than round size. FGV is closing an oversubscribed $35 million Fund II, above its original $25 million target, lifting assets under management beyond $60 million. The firm has invested in more than 40 companies across FinTech, healthtech and AI.