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Why investing in growth-stage AI startups is getting riskier and more complicated
AI startups are reaching growth stage much faster. That's exciting, but also risky, because investors might pour millions into a company only to watch it be unseated in a few months.
Jill Chase, partner at CapitalG, said on stage at TechCrunch AI Sessions that she’s seeing more companies that are only a year old, yet have already reached tens of millions in annual recurring revenue and more than $1 billion in valuation. “On the other hand, it’s a little bit scary because I’m gonna pay at an $X billion valuation for this company that didn’t exist 12 months ago, and things are changing so quickly.” Rebecca Bellan is a senior reporter at TechCrunch, where she covers Tesla and Elon Musk’s broader empire, autonomy, AI, electrification, gig work platforms, Big Tech regulatory scrutiny, and more.
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