Builder.ai, once a top British startup valued over $1.3 billion and backed by major investors like Microsoft, has filed for bankruptcy. Despite initial success and substantial funding of over $500 million, the company succumbed to financial difficulties attributed to past decisions and inflated sales figures. CEO Manpreet Ratia cited unexpected actions from lenders as part of the collapse. Expert Carrie Osman points out that FOMO (fear of missing out) investing has led to hasty decisions, diluting due diligence and inflating asset valuations, especially in the AI sector during the ongoing tech boom.
"Technology like GenAI has been massively overhyped in recent years and investors and boards are under increasing pressure to find the latest, sexiest uses for AI."
"Driven by FOMO rather than fundamentals, investors are rushing into deals with minimal scrutiny, inflating valuations and sidelining due diligence."
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