Deal Flow Pulse: May 2026

May brought a clear rotation back toward applied AI and fintech infrastructure. Across our pipeline, early stage valuations held firm while later stages stayed selective. Capital is available, but only for teams who can show real traction and a credible path to durable margins.

Sectors in focus

We saw the strongest investor appetite in three areas this month: AI workflow tools that replace manual back office processes, vertical fintech that embeds payments into existing software, and climate infrastructure with clear regulatory tailwinds. Generalist consumer plays continued to struggle to raise.

• Applied AI and agentic workflow tooling, the most competitive category

• Embedded fintech and business banking, steady rounds led by revenue

• Energy and climate infrastructure, longer diligence and larger cheques

What we're observing

The bar on revenue quality has risen again. The rounds that closed cleanly this month were led by teams who came in lean, told a sharp story, and could evidence retention rather than promise it. On the advisory side, our mandates are matching faster when founders arrive with a tight data room already in place.

If you are raising a Seed to Series A round or running an MBO, this is a market that rewards preparation. We are actively deploying from the balance sheet and advising on mandates across both pillars. 🌱