The state of (AI)nvesting

AI’s Uncapped Upside: Venture Capital Leaders Chart the Future of Innovation and Investment

The Web Summit Vancouver 2026 panel, “The state of (AI)nvesting,” moderated by Ms. Susan Li, explored venture capital in the AI era. Ms. Li highlighted that $300 billion in Q1 venture capital saw 70-80% directed to AI. Panelists included Mr. Taha Mubashir (Inovia Capital), Ms. Emily Fontaine (IBM), and Mr. Benjamin Narasin (Tenacity Venture Capital).

Addressing the “AI bubble,” Mr. Mubashir acknowledged stretched valuations but emphasized AI as a seismic technological shift with immense potential, citing unprecedented growth. Ms. Fontaine stressed rigorous due diligence, focusing on market, strategic alignment, and team strength, noting a physical AI company’s $2.2 billion Series A valuation.

Mr. Narasin declared the AI boom “bigger” than the dot-com era, offering “uncapped upside” across all sectors. He pointed to Anthropic’s rapid valuation increase from $1 billion to $30 billion in a quarter, justifying high investments for such transformative potential.

The discussion then addressed Canada’s entrepreneurial landscape. Mr. Mubashir stressed retaining talent and capital locally, with Inovia fostering the ecosystem. Ms. Fontaine, from IBM, seeks top startups globally, urging Canada to boost incubation and share success stories. Mr. Narasin, an investor in Canadian Wildfire Robotics, argued that top entrepreneurs migrate to larger economies like California, which surpasses Canada’s economy.

Regarding AI investment opportunities, Mr. Narasin favored marketplaces, citing SF Compute (GPU futures marketplace) for explosive growth. Mr. Mubashir highlighted Canada’s strong AI research institutions driving innovation in vertical AI and infrastructure. Ms. Fontaine noted IBM’s success with Agent Security and Defi among Canadian banking clients. She also believes SaaS will evolve with AI, not die, with major companies adapting.

The panel also discussed IPOs and VC liquidity. Mr. Narasin anticipated a busy IPO year for giants like SpaceX, Anthropic, and OpenAI, predicting a 3X upside for OpenAI. For VCs, liquidity for Limited Partners (LPs) is crucial, often taking 10-15 years, with M&A also providing vital exits. Ms. Fontaine, as a strategic investor for IBM, prioritizes partnerships and driving engagement, with financial returns being secondary.

On risks, Ms. Fontaine was wary of data center investments, expecting a plateau. Mr. Narasin agreed that the projected $1 trillion in commitments is unlikely to be fully spent. The US-China AI race was also debated, with Mr. Mubashir suggesting US leadership in commercial AI and China’s potential lead in quantum. Mr. Narasin firmly stated the US is ahead in AI, viewing China as a “material adversary.”