Future-Proofing Start-ups How start-ups can thrive in 2026 by embedding resilience, leveraging technology, and turning climate impact into a core business advantage.

In an era defined by market volatility and shifting regulatory landscapes, investors and entrepreneurs alike are rethinking the strategies that make start-ups not just innovative, but enduring. Olivia Brooks, Head of Investments at Founders Factory, has been at the forefront of guiding start-ups through this complex terrain, building a portfolio of over 400 companies that have collectively raised more than $4bn in follow-on funding. Her perspective, combined with insights from SME expert Ian Wright, offers a blueprint for start-ups aiming to thrive in 2026 and beyond.

Strategic resilience and security
Brooks highlights a shift in venture capital focus: "Global volatility and geopolitical risk is causing rising VC capital this year towards technologies that secure foundational national capabilities." This translates to an increasing emphasis on domestic resilience, from nearshore manufacturing with localised supply chains to critical mineral diversification and advances in national security, including surveillance, advanced materials, and cybersecurity.

Ian Wright adds context from the SME perspective: "The UK venture capital environment in 2025 feels like one of those moments where everyone is trying to catch their breath and figure out what 'normal' looks like again… two trends are shaping the landscape more than anything else. The first big shift is how uneven the recovery has been across sectors…IT services, healthcare roll-ups, and certain SaaS verticals are attracting strong investor appetite. These are the companies that have proven themselves indispensable."

Together, their insights highlight that resilience is no longer optional; investors and founders are actively seeking businesses that can weather uncertainty and still deliver results.

'Baked-in' climate tech
The climate tech sector is undergoing a subtle but powerful transformation. Brooks observes, "There's a shift away from climate tech that heavily relies on subsidisation or regulation and towards solutions where climate benefit is an additional output of industrial improvement." Start-ups that deliver economic value first - cost reductions, efficiency gains, or energy savings - with environmental impact naturally integrated are the most likely to attract funding and scale successfully.

Wright reinforces this with a broader lens on investor behavior: "Investors want businesses with technology baked into the model, not bolted on as an afterthought. They want high retention, dependable cash flow, and the potential to turn into platforms… SMEs in tech, healthcare, and renewable energy seem to be moving with more confidence, while traditional retail and legacy financial services continue to struggle against cost pressures and cutthroat competition."

This dual perspective underscores a shared message: start-ups that embed both climate and technological advantage into their core operations are better positioned to thrive, regardless of external shocks or policy shifts.

Fundraising and valuations: Selective, not closed
Wright notes a second trend defining 2025: fundraising has become highly selective. "Capital is still there - but it's choosier… The big funds and growth-equity firms are the ones absorbing most of the inflows, while smaller managers are facing slower, more drawn-out cycles… The landscape isn't closed - it's simply asking sharper questions. And the businesses that succeed will be the ones ready with sharper answers."

Valuations are gradually rebounding, but investors are discerning. Companies with strong recurring revenue, scalability, low customer concentration, and embedded technology are commanding attention, while exits remain slow - meaning preparation, clarity, and defensible business models are paramount.

For founders, the combined insights of Brooks and Wright provide a clear roadmap: prioritise resilience, embed technology and climate impact into your core operations, and ensure your business story is crisp, measurable, and compelling. In a market that rewards precision and preparation, startups that internalise these lessons are best positioned to secure capital, scale efficiently, and navigate the uncertainties of 2026 and beyond.