Founders using AI internally can boost employee productivity 30-60%, meaning they need less capital to scale. This creates leaner teams with higher talent density and avoids the bloat that comes from too much easy money.
They're raising only the money they need. They're using AI to build their companies more efficient. Forget about putting AI in your product. Of course you're going to do that. But the really savvy ones are doing things with AI to run the company that are making everybody in the company 30, 40, 50, 60% more efficient. So then they need less dollars. And so the savvy founders are raising less, doing more, and you're getting— talent density is back. The major problem in a ZIRP-like environment, the zero interest rate environment, is there's too much funding.
