Buzzy AI startups are struggling to command the same valuations from a few years ago. PM Images/Getty ImagesAI startups have raked in over $35 billion in 2024, but many have inflated valuations.VCs say that capital-intensive startups struggling to generate revenue are raising flat or down rounds.It's pushing AI startups to turn to 'acquihire' arrangements and secondary share sales.Down rounds and flat rounds for VC-backed startups have hit an all-time high this year since 2014.And AI startups, which have been the darlings of the tech ecosystem since late 2022, aren't exempt from the trend.Case in point: buzzy startup Inflection AI raised $1.3 billion at a $4 billion valuation in 2023.

BING NEWS:
  • AI startups should brace for a wave of down rounds, investors say. Here's how it might play out.
    Down rounds and flat rounds for VC-backed startups have hit an all-time high this year since 2014. And AI startups, which have been the darlings of the tech ecosystem since late 2022, aren't exempt ...
    09/23/2024 - 10:22 pm | View Link
  • The hottest AI startups are raising back-to-back funding rounds. Suddenly, it's feeling very 2021 in Silicon Valley for a chosen few.
    Suddenly, it's feeling very "2021" for tech companies with an AI story and a viable business model.
    09/19/2024 - 10:00 pm | View Link
  • The Next Frontier: How AI's Second Wave Could Create Unprecedented Investment Opportunities
    Just as the ZX81 introduced many to the wonders of computing, AI is now ushering in a new era—one that promises to reshape industries, create unprecedented economic opportunities and redefine how we ...
    09/17/2024 - 2:46 am | View Link
  • Funding flow: Austin startups ending summer with big rounds
    From seed rounds to PE deals for companies with $1B-plus valuations, funding for local companies has been trending up in September. Check out deals from the first half of the month in this report.
    09/16/2024 - 12:07 pm | View Link
  • Startup Buying Power — VC-Backed Companies Are Hunting For More Startups
    It’s not exactly a shopping spree, but with overall M&A down, startups buying other startups is on pace to make up the largest slice of the M&A pie in years when it comes to overall VC-backed, ...
    09/16/2024 - 12:00 am | View Link
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