{"id":19644,"date":"2024-12-18T11:01:01","date_gmt":"2024-12-18T09:01:01","guid":{"rendered":"https:\/\/forklog.com\/en\/ai-startups-complicate-funding-for-traditional-firms\/"},"modified":"2024-12-18T11:01:01","modified_gmt":"2024-12-18T09:01:01","slug":"ai-startups-complicate-funding-for-traditional-firms","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/ai-startups-complicate-funding-for-traditional-firms\/","title":{"rendered":"AI Startups Complicate Funding for Traditional Firms"},"content":{"rendered":"

Companies not associated with artificial intelligence are encountering difficulties in securing funding. This statement was made by Tribeca Venture Partners co-founder Brian Hirsch, as reported by TechCrunch<\/a>.<\/p>\n

Founders of such projects feel “like they’re in high school and weren’t invited to the party.” They may have a solid business and revenue growth, but no one seems to care.<\/p>\n

\n

“Venture funds are eager to support companies in the AI sector at inflated valuations, but everything else is at risk,” noted Hirsch.<\/p>\n<\/blockquote>\n

The platform Carta analyzed around 2000 deals in 2024 and found that the bottom 10% of Series B rounds were valued at $40 million, while the top 10% of companies were valued at nearly $1 billion. In the case of Series D, the range was even wider\u2014from $27 million to $5.2 billion.<\/p>\n

\"AI
Data: Head of Analytics at Carta Peter Walker<\/a>.<\/figcaption><\/figure>\n

Companies at the top of the range operate in the AI sector. For instance, ElevenLabs raised funds earlier this year in a Series B round valued at $920 million. Cohere was valued<\/a> at $5.5 billion in a Series D round.<\/p>\n

Hirsch noted that even if non-AI companies raised funds in a Series A round a year and a half ago and show steady revenue growth, they struggle to find new funding.<\/p>\n

Data from Carta indicates that only 9% of companies that closed a Series A round were able to secure Series B funding within two years. Before the AI boom, the figure was 25%.<\/p>\n

In the third quarter of 2024, crypto venture investors poured $213 million into AI-related projects, a 340% increase from the previous year’s figure.<\/p>\n","protected":false},"excerpt":{"rendered":"

Companies not associated with artificial intelligence are encountering difficulties in securing funding. This statement was made by Tribeca Venture Partners co-founder Brian Hirsch, as reported by TechCrunch. Founders of such projects feel “like they’re in high school and weren’t invited to the party.” They may have a solid business and revenue growth, but no one […]<\/p>\n","protected":false},"author":1,"featured_media":19643,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[438,1133],"class_list":["post-19644","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-artificial-intelligence","tag-venture-investments"],"aioseo_notices":[],"amp_enabled":true,"views":"12","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/19644","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=19644"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/19644\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/19643"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=19644"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=19644"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=19644"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}