Equity's 2026 Predictions: AI Agents, Blockbuster IPOs, and the Future of VC - Equity Recap

Podcast: Equity

Published: 2025-12-26

Duration: 35 minutes

Guests: Isabel Johansson

Summary

Hosts Kirsten Korosec, Anthony Ha, and Rebecca Bellan, with guest Isabelle Johansson, discuss 2026 tech predictions, including the rise of AI agents, expected blockbuster IPOs, and the liquidity challenges facing VCs.

What Happened

The episode kicks off with an evaluation of the 2025 tech landscape, focusing on AI's mega funding rounds. Despite predictions to the contrary, OpenAI, Anthropic, and XAI secured billions, sparking concerns about an AI funding bubble. Kirsten Korosec humorously notes past incorrect predictions by colleagues, underscoring the unpredictable nature of tech investments.

World models are poised to be the next major evolution in AI, according to the hosts. These models differ from large language models by creating environments and predicting outcomes in a physics-aware manner. This development is highlighted by companies like Runway and individuals like Yann LeCun, who is rumored to be starting a World Lab startup.

The episode predicts 2026 as the year AI agents finally meet their potential, facilitated by innovations like Anthropic's Model Context Protocol (MCP). These agents are expected to integrate seamlessly with data and tools, marking a significant shift in AI utility. Rebecca Bellan mentions her own experiments with open-source AI agents to manage fitness data.

Hollywood's resistance to AI-generated content is another focal point. While Disney's partnership with OpenAI suggests industry experimentation, there's a growing trend of productions branding themselves as 'made by humans'. This reflects a broader pushback from the creative community against AI encroachment.

The looming liquidity crisis in venture capital is a major concern, with limited partners (LPs) increasingly bypassing traditional VCs to invest directly in startups. This shift is attributed to frustration over poor returns, prompting predictions of innovative and founder-friendly funding structures emerging in 2026.

IPO predictions for 2026 are optimistic, with companies like OpenAI and Anthropic expected to go public. The hosts discuss the potential for deep tech companies to turn to public markets due to capital access challenges. This potential surge in IPOs is contrasted with the decline of late-stage VC, affected by unmet expectations from AI investments.

The episode concludes with rapid-fire predictions, including a public split between Johnny Ive and Sam Altman, and the anticipated return of 'dumb phones' to aid founder focus. Isabelle Johansson outlines plans for Build Mode's second season, which will delve into team building and co-founder dynamics.

Key Insights

• OpenAI, Anthropic, and XAI secured billion-dollar funding rounds in 2025, raising concerns about a potential AI funding bubble as large investments continue despite earlier predictions of a slowdown.
• World models, a new evolution in AI, create environments and predict outcomes in a physics-aware manner, distinguishing them from large language models. Companies like Runway and individuals such as Yann LeCun are at the forefront of this development.
• The Model Context Protocol (MCP) from Anthropic is expected to be a key innovation in 2026, enabling AI agents to integrate seamlessly with data and tools, significantly enhancing their utility.
• A shift in venture capital is anticipated as limited partners increasingly bypass traditional VCs to invest directly in startups, driven by dissatisfaction with poor returns and leading to the emergence of new founder-friendly funding structures.