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TLDR:
- AI startups globally raised $24 billion in Q2
- VC Rob Biederman believes that the value in AI will accrue to a relatively small number of firms
AI startups raised $24 billion globally in Q2, but the question remains: Where will value in AI accrue? In a conversation with VC Rob Biederman, he shared a slightly contrarian take on the situation. While the AI boom continues to thrive, there are concerns about where the returns will go and whether venture capital will be writing off AI investments in the future.
Despite the high deal counts and value in Q2, with AI startups raising $24 billion globally, Biederman believes that too many investors are backing too many similar companies, which could impact returns for Limited Partners (LPs). He emphasizes the need to look for startups in less obvious spaces and with specific applications where AI can make a significant impact, such as in vertical market software applications for industries like legal, healthcare, and insurance.
Overall, Biederman’s perspective highlights the importance of finding innovation in AI that goes beyond the obvious spaces to truly unlock the potential of the technology and ensure that the gains in the AI sector accrue to the right companies.
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