Charles HudsonFounder and Managing Partner, Precursor Ventures

AI Dominates Seed Stage: Sustainable or Not? #venturecapital #siliconvalley

9 Feb 2025 · 0 min

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One-third of seed deals on AngelList are now AI startups, driving up valuations across the board. Charles Hudson warns the industry risks an elongated seed process, using the metaphor of boiling the frog to describe what happens when things heat up too slowly to notice.

Questions this video answers

About one third.

February 9, 2025.

So through Angellist specifically, a third of deals at the seed stage now fall into the AI category, far outpacing previous tech cycles like fintech and crypto. So the fact that seed valuations are still climbing despite weaker overall venture returns, I thought was pretty interesting. I assume a lot of this has to do with AI or stack safes, but how sustainable do you kind of think this model is?
I think we're in this very weird place in seed stage investing. You know, some things feel kind of like boil the frog, and I feel like this elongated seed process is we're very close to actually boiling the frog, I think.