The money is flowing

I’m officially starting to get a bit worried. It feels a little bit like 2021 all over again. Companies seem to be raising money at a ridiculous clip. I know of a handful of companies who have raised 2 rounds this year at significant markups that are about to raise yet another round in the next month or early next year.

I understand a bit of the game that the VCs are playing. The most money you can lose on a $1 investment is $1 and the opportunity for outsized returns and to be an early supporter in one of the big AI winners is massive.

Of course, there are differences than 2021 in that the money is largely flowing into the AI realm versus virtually every startup out there. Still it is a bit unsettling as everyone knows there is a bubble here and people will lose money soon enough. There will be ripple effects throughout tech and the entire ecosystem from this. We can only hope that it’s a correction versus a massive prolonged downturn like last time.