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AI is one of the fastest-growing startup sectors globally. In May alone, large language models raked in $12.4 billion, according to Crunchbase. To put this in perspective, this represents 40% of the global total raised in May.
But a disquieting truth lurks beneath the surface. While the initial hype was deafening, there are signs it’s fading. The question now hangs heavy: can high-flying AI startups translate early promise into long-term success?
The Trough of Disillusionment
As a venture capitalist, AI-native startups are easily some of the fastest-growing startups I’ve encountered, scaling to $1 million in annual recurring revenue in record time.
ABOUT THE AUTHOR
Andrew Poesaste is a partner at venture capital firm Rampersand.
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