AI Is Pressuring Pre-ChatGPT Startups and Valuations
AI startup valuations reset as older unicorns face stale funding and pressure See why capital is shifting to AI-native firms and which brands are hit hardest
Artificial intelligence is reshaping the startup market and putting pressure on many companies founded before ChatGPT launched in 2022. The CNBC report says older startups that once benefited from high growth valuations are now facing weaker funding prospects as investors shift capital toward AInative businesses.
PitchBook data cited in the article shows that hundreds of U.S. unicorns have not raised new funding in years, leaving many valuations stale. Companies that last raised in 2021 or 2022 have seen large estimated declines in value, and more than 220 billiondollar startups from the venture boom are now considered fallen unicorns.
The article highlights consumer brands and software companies, including Glossier, Brooklinen, AG1, Calendly and Betterment, as examples of firms affected by the reset. Investors say the rise of AI tools is reducing the need for large engineering teams and changing how software is built, sold and valued.