longterm

The Potential Impact of AI Startups’ Profit Margin on Their Future Valuation

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The expectation that modern AI tech will find a home in every part of our lives is pandemic. Fittingly, startups and investors are working overtime to build and fund new technology companies to either create or implement new AI tech. But despite all the enthusiasm, there’s a niggling detail that deserves our attention: AI startups often have worse economics than most software startups. The conversation around AI gross margins is not new. Back in 2020, venture firm a16z argued that AI startups would have lower gross margins due to “heavy cloud infrastructure usage and ongoing human support.”

“New Crypto Fund Takes ‘Long-Term, Low Volatility’ Approach: Roundtable’s Bet for Sustainable Growth”

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In fact, in the midst of raising the firm’s fourth fund, he seems to be positively cheery about the state of the crypto market despite how things are going. With over $1.2 billion in assets under management, 10T counts major crypto entities like Gemini, Kraken, Yuga Labs and Animoca Brands as part of its portfolio. And 1Roundtable Partners (1RT), Tapiero’s growth-stage firm, is also raising a not-insignificant amount for its upcoming fund: a minimum of $200 million and up to $800 million. As the bear market thaws, Tapiero sees few other growth equity investors dedicated to the crypto space at this point in time. Taking the long viewWith the new fund, 1RT plans to make about 10 to 15 additional investments with hopes of gaining another five to 10 board seats across those portfolio companies, Tapiero said.