As 2025 draws to a close, we look ahead to 2026. Domain markets are likely to see continued interest in premium names and defensive registrations as brands expand digital presence. Regulatory developments—particularly around AI, data, and platform liability—will shape how IP is created, protected, and valued. The impact of AI on IP valuation is still unfolding: AI-generated content raises ownership and infringement questions; AI tools for patent and trademark analysis are improving efficiency. We expect these themes to accelerate in the year ahead.
Domain markets will remain a core focus. New gTLD rounds may introduce additional strings; existing TLDs will continue to mature. Renewal optimisation and portfolio health will matter more as costs and complexity grow. We anticipate sustained demand for category-defining and brand-aligned domains, with aftermarket activity reflecting both strategic and speculative interest. Secondary market liquidity has improved with established marketplaces and broker networks; sellers can access a broader buyer base than a decade ago.
Emerging opportunities in data assets and software will attract capital. Privacy-preserving technologies, synthetic data, and compliant licensing models will enable new monetisation paths. Software valuations will increasingly factor in open source compliance, SBOM completeness, and cybersecurity posture. Acquirers will demand higher standards; targets that invest in governance and documentation will command premiums. We are positioning our portfolio to capture value in these areas while maintaining discipline on valuation and risk.
AI and IP: The Unresolved Questions
AI-generated inventions, works, and marks will test existing frameworks. Who owns the output? Can AI be an inventor or author? Courts and registries are grappling with these questions. Until clarity emerges, assume that AI-assisted filings may face challenges. Document human involvement in creation and review. For acquirers, assess whether a target's IP portfolio includes AI-generated assets that could be contested.
Risks to Watch
Regulatory uncertainty remains the biggest variable. AI regulation, data sovereignty, and platform liability will evolve; changes can affect asset values and deal structures. Geopolitical tensions may influence cross-border IP transactions and data flows. Economic conditions could dampen demand for premium domains and speculative assets. We maintain scenario planning and stress-test our portfolio against downside cases. Discipline on entry price and exit strategy matters more when volatility increases.
Fullcover Investments is focusing on assets with clear revenue potential, defensible IP, and strong governance. We expect 2026 to reward those who combine domain expertise with operational rigour. The cyber asset class continues to mature—opportunity remains for disciplined investors who understand the landscape and adapt to change.