3 ms·
These are capital intensive businesses. There's no liquidity until they are making money. It means that AI startups are actually a really poor value propositi
by hiddencost 2y ago
These are capital intensive businesses.
There's no liquidity until they are making money.
It means that AI startups are actually a really poor value proposition compared to traditional tech companies, because your multiplier is limited. First round $50M valuation leaves a lot more opportunity to get rich.
This kind of structure isn't as unusual for capital intensive businesses.