2026 Predictions, Events Across Ecosystems, and our Brand New Maven Course for Tech Leaders

We Made a Few Predictions for 2026

As we continue deploying Fund II, we’ve been reflecting on where this AI cycle is actually heading - beyond the hype cycles.

We shared the following predictions with our LPs, and we’re sharing them publicly because we believe they matter for founders, operators, and investors alike.

• Domain experts will outperform generalist AI founders. Most industrial tech fails because outsiders build solutions for problems they don't understand. In 2026, we expect generalist AI founders to underperform domain-expert founders, especially in manufacturing, legal, and healthcare. The founders who spent a decade in pharma QC or ran operations at a logistics company will build stickier products than the Stanford CS grad pattern-matching from the outside. This is core to why we back First Builders.

• Speaking of First Builders - The best pre-seed founders will be 35-45, not 25. This is something we've believed for a while but haven't said publicly: there's a massive opportunity in funding founders 10-15 years into their careers. Despite being at ages where they may have spouses and kids (which some investors assume means less output), they're masters at ruthless prioritization, outcomes-based working, and the kind of leadership that inspires. Given their higher-than-average opportunity cost in considering whether to found a company, they choose areas where they have deep insights and networks. All of this allows them to leapfrog typical first-time-founder pitfalls, ultimately hitting product market fit and locking in GTM motions faster.

• Services-first AI will win in complex industries. More winning AI companies will launch as services businesses first, building software on top of proprietary operational data. It's risky as team structure needs to be intentional from day one, but in industries with messy workflows and poor data infrastructure, it's often the only way to build a real moat. We're already seeing this across our portfolio.

• If there's a correction, consumer AI gets cut first; essential-industry AI accelerates. Essential industries don't disappear in downturns: they get more desperate for solutions. Healthcare, manufacturing, and logistics still need to operate, and budget pressure makes the ROI case for automation stronger, not weaker. This is why we focus on countercyclical sectors and invest pre-FOMO.

This is why we focus on sectors that endure boom and bust cycles.

As a reminder, if you are a First Builder building vertical AI for an essential (think: complex, foundational) industry like healthcare, law, or manufacturing, we’d love to hear from you.

Bringing the Essential Economy POV Across Ecosystems

Over the past weeks, we have been on the ground across healthcare, emerging managers, and LP ecosystems. Highlights so far include:

• Rachel Tsui spoke on two panels at JPM Healthcare Week in SF - Women’s Health & Longevity and Early-Stage Investing in Health Tech.

• Amber Illig represented The Council Fund at the inaugural Future Titans Emerging Manager Summit in Austin.

• Rachel & Amber hosted LP dinners in Atlanta and Bentonville bringing together university endowments, local investors, and CEOs aligned with the future of the essential economy.

• Amber joined the Inversion NYC Summit, designed to connect LPs and GPs in a curated setting.

We’re hosting private founder and LP dinners in DC, SF, San Diego, LA, and additional cities in the coming months. If you’re an LP aligned with our thesis, reach out to [email protected] for more details. We’d love to include you.

We’re Opening Up Our Operator Investing Playbook

Most tech leaders want to angel invest. Very few know how to start and build a repeatable strategy.

After 80+ early-stage investments, we organized our internal frameworks, decision models, and templates into a practical investing playbook for our private operator community.

For the first time, we’re making it public. Join our Angel & LP Investing for Leaders course on Maven! Build a high-conviction investing strategy - from thesis formation to sourcing to diligence.

• Cohort begins: March 27, 2026

• Apply by March 20 to secure your spot

We’re intentionally keeping this inaugural cohort small. If you want to move from “curious” to “confident” in investing, this is for you.

You can also watch our recently recorded webinar outlining what the six-week cohort includes.

Live Learnings on How LP and Angel Investors Track Performance

Join Rachel Tsui, Partner at The Council Fund, for our upcoming webinar on March 17th at 9 AM PT which will walk you through LP How LP and Angel Investors Track Portfolio Performance with our Partner, Rachel Tsui.

We’ll focus on essentials for this important topic such as:

• The Key Metrics LPs and Angel Investors Track

• How to Track Your Portfolio in One Place

• How Tracking Improves Your Investment Decisions

Understanding your portfolio is a must! It helps investors evaluate managers, identify patterns, and make informed decisions.

Don’t Miss Out on Joining Our Upcoming Events for Deeper Learnings

• The Power of Capital: Angel Investing That Actually Moves the Needle

  • Join The Fourth Effect, Play Money, The Council and Wealth Catalyst for a curated, investor-first breakfast in San Francisco designed for angels and angel-curious operators who want the context, confidence, and next steps to actually write their first check and invest with their values.

  • March 31 @ 8:30 - 11:00 am | San Francisco

  • RSVP Link

• Owning Innovation: A Leader’s Guide to Angel & LP Investing

  • A practical, operator-led introduction to angel and LP investing for innovation leaders looking to deploy capital, expand influence, and support founders across the company lifecycle.
    
    In celebration of Women's History Month, WIN (Women in Innovation) x The Council invites you to an in-person session designed to demystify alternative investing and open the door for more women leaders to step onto the cap table.

  • March 19 @ 5:30-7:30 pm | San Francisco

  • RSVP Link (Promo Code: THECOUNCIL)

Catch Up On All of Our Latest Podcasts

Know more First Builders who should be on our podcast? Nominate them for our team’s consideration.

Check out our team’s favorite clips from our podcast episodes

Discover open roles at our fast-growing performing portfolio companies!

Let us know why you might be the perfect fit and we may be able to get your resume to the top of the pile.

• Dirac is the AI-driven, model-based manufacturing platform automating assembly workflows.

  • Recently was highlighted by Anduril’s COO on TBPN sharing how Dirac is a key component of how Anduril explains modern manufacturing to its customers.

  • Open roles include Director of Underwriting, Account Executive, and Software Engineers.

• GC AI is the AI tool for in-house legal counsel.

  • Recently hosted their first customer summit, bringing together 150 senior in-house counsel leaders across their 1,000+ customer base.

  • Open roles include VP of Finance, Founding Product Manager, and Head of Partnerships.

• NOX METALS is building the fastest metals processing factories in North America. 

  • Recently featured in Y Combinator’s Request for Startups as they share their perspective on why reindustrialization for modern factories is a key opportunity.

  • Open roles include a Software & Machine Engineer in LA. 

• Joyful Health is building an AI-powered financial operating system that simplifies revenue operations, so clinicians and teams can focus on what matters most.

  • Recently partnered with one of the top healthtech communities, Out of Pocket, on a revenue cycle management course for digital health companies.

  • Open roles include Chief of Staff, Founding Growth Lead, and AI Engineer.

Our exclusive operator network continues to deepen

The Council Angels is an application-based network of First Builders that angel invest together and collaborates with our venture fund.

Spring Cohort Applications are Live

The best operators don’t just build companies.They build ownership. If you’re a tech leader ready to move from operator to investor, this is for you.

In 2025 alone:

• 10 SPVs launched

• 120+ companies vetted

• 30+ educational webinars

• Quarterly member events across SF, LA, NYC, and DC

Membership includes:

• Vetted deal flow across essential industries

• Weekly live pitch calls

• Co-investment opportunities alongside The Council Fund

• A bonus six-week Angel & LP Investing course

Apply by Friday, March 20, 2026 for the Spring Cohort so that we can fast track your interview.

Thank you from The Council Team!

 About Us: The Council Fund is an operator-led venture firm investing in First Builders transforming our most essential industries like manufacturing, legal, and healthcare as part of Software’s Third Act.