One-third of seed deals are now AI-related, and valuations keep climbing even as venture returns weaken. Precursor Ventures worries the seed stage is stretching out unsustainably, like slowly boiling a frog.
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.
