Solid advice on market conditions in venture and startups. #ai #strategy #fundraising
AI is Booming, but Profits are Lagging The venture industry is grappling with a paradox—AI startups are on fire, but VC profits are at a historic low. Here's what it means for all of us: 1. Unicorn Traffic Jam. With over 1,400 startups valued at $1 billion+ and exits moving at a snail’s pace, founders and VCs must think creatively about liquidity. IPOs and acquisitions aren’t the only paths—tender offers and private equity are becoming critical options. 2. Bigger Valuations, Bigger Risks. AI startups are attracting massive funding but burning through cash just as quickly. Founders, sustainability matters more than ever. Big valuations can’t replace a solid path to profitability. 3. Survival Requires Strategy. This isn’t just a VC issue. Founders: focus on cash management and operational excellence. VCs: get smarter about portfolio diversification. LPs: patience is key—pressure for quick returns can backfire in this evolving market. The venture playbook is evolving. The Wall Street Journal (Link in comments)