The venture capital landscape is experiencing a dynamic period marked by both new opportunities and significant transitions. From emerging AI ventures in Africa and Canada to wellness startups and reindustrialization efforts in the American Midwest, the flow of capital is adapting to new priorities [3, 6, 7, 12]. However, shifts are also occurring within established firms, signaling an evolving environment for venture capital [1].
New Funds and Investment Strategies
Venture capital firms are increasingly focusing on specialized sectors and unique approaches. Heartland Ventures launched its $60 million Fund III to connect the industrial strength of the Midwest with emerging technology startups [12]. This "owner-operator" model seeks to revitalize American reindustrialization [12]. In the wellness sector, Jenny Liu, former CEO of Dogpound, launched Crush It Ventures, a $5 million fund targeting mental health, fitness, beauty, and hospitality startups, with investments ranging from $100,000 to $250,000 [7]. This fund is particularly focused on capturing the attention of Gen Z, who account for a significant portion of wellness spending [7].
In the AI space, Mila, a Québec AI institute, and Montréal venture firm Inovia Capital have partnered to launch an early-stage venture fund aimed at commercializing Canadian AI research [3]. FirstFounders, a Nigerian venture studio, is taking a proactive approach by embedding itself with founders from the initial stages of ideation to execution, focusing on building scalable AI-driven companies in Africa [6]. Their philosophy is "build fast and kill fast," quickly phasing out underperforming ideas to conserve resources [5].
Transitions and Market Dynamics
While new funds emerge, established firms are also experiencing changes. Mayank Khanduja concluded his 15-year association with Elevation Capital, citing a desire to take a break and spend time with family before exploring future opportunities [1]. Despite this departure, the Indian venture capital landscape remains vibrant [1].
In Philadelphia, the venture capital market showed resilience with a strong Q4 2025, bringing in $1.17 billion across 116 deals [14]. However, the total still trails 2024 figures, suggesting that while the market is improving, it is not returning to the highs of 2021 and 2022 [13, 14]. Experts suggest that uncertainty is the "new normal," and investors are learning to adapt [13]. The domestic innovative venture industry has vowed to use 2026 as the first year of its leap into the global stage, reaffirming its commitment to mutual cooperation [2, 4].
Some voices suggest a concerning trend of blending venture capital with a "wartime" mentality [8, 10, 11]. This perspective normalizes crisis and upheaval as necessary for growth, potentially overshadowing the human cost of conflict [8, 16].
TL;DR
* Heartland Ventures launched a $60 million fund to connect Midwest industries with tech startups, while Crush It Ventures, a $5 million wellness fund, targets Gen Z consumers [7, 12]. * Mila and Inovia Capital created a fund to commercialize Canadian AI research, and FirstFounders in Nigeria is proactively building AI startups from the ground up [3, 6]. * Elevation Capital experienced the departure of partner Mayank Khanduja, amidst an otherwise thriving Indian venture capital scene [1]. * Philadelphia's venture capital market showed a strong Q4 2025, but overall activity remains below peak levels, signaling a market adjusting to a "new normal" [13, 14].