As key European sustainability regulations took full effect in 2025, environmental, social and governance (ESG) investing is entering a decisive phase. What began as a compliance-driven exercise is now becoming a defining factor in which technology companies scale, attract capital and achieve durable exits. For investors looking ahead to the next wave of unicorns in 2026, ESG integration has become a strategic requirement. For many funds, sustainability criteria now influence screening decisions at the same stage as market size, team quality, and execution track record.
Alexander Kopylkov, a venture investor and strategist, has for the past 20 years watched as ESG factors have gone from being a footnote in mainstream investing to being front and centre when making informed investment decisions. Along the way, he has collaborated with more than 20 European startups developing artificial intelligence, deeptech and green technology, helping entrepreneurs integrate their technological innovations into long-term value creation.
“ESG only works when it is built into the operating logic of a company, not layered on for reporting,” Kopylkov says. “The strongest performers are the ones that treat sustainability as a growth driver rather than a constraint.”
Due to new EU frameworks such as tighter disclosure rules and the establishment of accountability standards, investors now have a much higher level of scrutiny over how portfolio companies manage data ethics, energy use, governance structures and social impact. For AI and green tech ventures specifically, these issues directly affect scalability and market access. In several sectors, weak alignment can delay approvals, restrict partnerships, or limit access to institutional capital.
Kopylkov says regulation has brought greater clarity to the investment landscape. Startups that integrate ESG early tend to move faster once regulatory pressure increases. Meanwhile, those that postpone alignment often struggle during later funding rounds or exit negotiations.
“In AI, governance is inseparable from valuation,” he says. “If a company cannot demonstrate responsible data practices or transparent decision making, strategic buyers and public markets will discount it heavily, no matter how advanced the technology looks.”
For investors and analysts, the lesson is increasingly clear. ESG has become a practical measure of execution discipline. Companies that can operationalise sustainability tend to show stronger fundamentals, from capital efficiency to leadership resilience.
Kopylkov’s investment philosophy centres on close collaboration with founders through each stage of growth. He works with management teams to develop and refine their business models and improve governance. He also helps them plan exit strategies, including initial public offerings (IPOs) and acquisitions. Throughout the years, many of Kopylkov’s portfolio companies have achieved consistent annual growth, despite the increasingly complex and challenging regulatory landscape.
“The startups that become unicorns in 2026 will not be the loudest or the most speculative,” he says. “They will be the ones that combine technical excellence with credibility, structure and long-term thinking.”
With Europe placing increased scrutiny on ESG factors, the way in which investors evaluate innovation is changing: growth will always be key, but investors are increasingly weighing other factors such as transparency, accountability, and resilience. Consequently, there has been a shift in interest towards investing into venture capital firms and family offices run by operators who have successfully transformed regulation into a competitive advantage. This trend reflects a preference for experience over narrative, particularly in capital-intensive or regulated industries.
Kopylkov believes sustainability requirements will play a central role in shaping the next generation of high growth companies. “When ESG is done right,” he says, “it creates businesses that are harder to disrupt, easier to exit and built to last.”
With capital markets demanding both growth and accountability, ESG integration is shaping up to be one of the most reliable predictors of resilience in the post-2025 venture landscape.
