Reflection AI's $2 billion Series B, Kailera Therapeutics' $600 million raise, and Physical Intelligence's $600 million round highlight a Series B landscape that's far more varied than the AI hype cycle would suggest. Crunchbase data reveals this year's funding is spreading across biotech, robotics, security, and software, with AI acting as a supporting rather than dominant theme. While AI remains the largest sector, over half of Series B dollars flow to software companies and more than a quarter to healthcare, indicating investors are casting broader nets than in previous years.

This diversification comes alongside record-breaking average round sizes, which have climbed to $68 million in 2026 – the highest on record. However, this growth coincides with a sharp decline in smaller $1-10 million rounds, dropping from around 150 annually pre-2020 to just 44 last year. The trend suggests investors are consolidating capital into fewer, larger bets even as they spread across more sectors. Google Capital's $600 million investment in Physical Intelligence, an AI robotics startup, exemplifies this shift toward substantial, sector-spanning deals.

The data implies Series B investors are prioritizing technological differentiation and traction over sheer novelty, as companies reaching this stage typically possess proven edge or early success. While Kailera Therapeutics targets obesity with oral treatments and Reflection AI builds open foundation models, the broader trend points to a maturing market where diversified funding supports varied innovation beyond the AI spotlight. This shift could sustain innovation across multiple industries even as late-stage funding concentrates further.