💼 AI is Consuming US Venture Capital
The share of investments in AI companies in the US rose from 65.4% in 2025 to 88.8% in the first quarter of 2026. Meanwhile, a startup's chances of successfully reaching a Series A round are only 13–18%, and the median threshold for securing investment has risen to $3–3.5 million ARR.
🌍 There is an extreme concentration of capital around AI giants and "mega-seeds," making the traditional scaling path for small startups extremely difficult and expensive.
👤 Founders should consider the "bootstrapping" path or look for models where distribution is more important than having a demo, as AI has devalued the technology itself as a unique advantage.
Source 1: https://okaneland.com/study/ai-startup-raise-math/