Q4 of 2023 saw a 55.3% decline inAIfunding compared to Q1, mirrored by fewer deals.
The dust after the initial AI boom has somewhat settled, exposing the first challenges.
Many AI companies that raised easy rounds during the funding boom didnt achieve the commercial success investors expected.
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A mere mention of generative AI is no longer enough to raise massive rounds.
Investors now seek strategic defensibility and differentiation in your stack against incumbents and new entrants flooding the market.
They want long-termmarket value.
This approach is deeply flawed.
But it doesntcreatevalue out of thin air.
This ability will make vertically integrated apps key in driving differentiation.
And how do you confirm your pitch lands in just the right spot?
The AI race is underway, and we are all part of it.
For early AI companies, defensibility and durability become the order of the day to attract funding.
Do this, and every VC door will open for you.
She currently serves as a partner at the VC consulting agency Waveup.
