overfunded

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‘The AI boom has fueled a wave of overfunded startups that look healthy on the surface’: Cash is flowing into AI startups, but investors have warned of the rise of ‘zombiecorns’ as companies struggle with revenue growth

While cash is flowing into the AI startup space, alarm bells are ringing over the long-term viability of many up-and-coming firms. A new report from Silicon Valley Bank (SVB) shows venture capital investment in AI firms has soared in recent years. Analysis from the bank found roughly 40% of all investment raised by funds last year came from those that…