More than 220 US startups that were worth over a billion dollars five years ago have lost more than half of their value. The reason is the rise of artificial intelligence, which has redirected investor interest towards companies like OpenAI. For the average citizen, this means that services and products from those pre-2022 firms could disappear or become more expensive.
Smart capital deserts towards generative models 🤖
Investment in traditional software and SaaS startups has drastically decreased. Venture capital funds now prioritize the development of large language models (LLMs) and AI infrastructure. This capital shift leaves e-commerce, logistics, or fintech firms without the necessary liquidity for growth. Many depend on funding rounds that no longer come, forcing staff cuts or a fire sale.
Goodbye to your favorite app, AI has eaten its budget 💸
So, if you use an app that seemed revolutionary in 2020, get ready for a silent goodbye or an email asking for more money. Investors no longer want anything to do with businesses that don't include the word artificial intelligence on their website. Now, the trend is to pay 20 euros a month for an AI that writes your emails, while the startup that delivered food in five minutes declares bankruptcy. The future is bright, but only for a few.