Seattle startup funding dropped about 40% in the first half of 2026 while AI money flowed elsewhere, alongside a court loss for Kalshi, Impinj's 10-year Nasdaq milestone, and a local flip-phone detox trial. The developments highlight shifting venture dynamics, legal hurdles for prediction markets, corporate endurance, and growing interest in reducing smartphone reliance.

AI investment is flooding other markets while the regional total declined sharply.
https://x.com/geekwire/status/2081018490857853001
The company has survived in a market described as still just getting going.
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