"2026 will be a year of reckoning,"
"When you see almost 20 companies I can think of that have a billion-dollar post-money valuation that make no revenue, I don't think it takes a genius to know that not all of them can work."
"Usually when those things happen together, there is some correction in the market,"
Nearly 700 seed-stage rounds of $10 million or more occurred in 2025, with some rounds substantially larger. The hottest AI companies repeatedly raised hundreds of millions and some founders secured multibillion-dollar valuations despite little or no revenue. A growing number of investors warn of a reckoning as venture firms face a harder fundraising environment and are on track for their worst year since 2017. Public markets have shown volatility amid concerns over massive AI data-center spending, and investors expect both a market correction and eventual emergence of a few dominant AI winners.
Read at Business Insider
Unable to calculate read time
Collection
[
|
...
]