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What “working” means in the era of AI apps
New revenue benchmarks for gen AI startups in year one, based on dozens of enterprise and consumer AI companies we’ve spent significant time with.
Given the rapid growth both AI-native B2B and B2C companies are achieving between Seed and Series A, startups looking to raise venture capital need a strong velocity story. Later-stage financing rounds will likely rely more heavily on traditional software metrics; rapid top-line growth won’t be enough to compensate for low engagement or high churn. While conversion to paid may be lower for generative AI B2C businesses compared to their pre-AI counterparts, our data suggests that once users do convert, they retain just as well.
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