Read previewDown rounds and flat rounds for VC-backed startups have hit an all-time high this year since 2014. And AI startups, which have been the darlings of the tech ecosystem since late 2022, aren't exempt from the trend. The deal was seen by some investors as an omen for a wider phenomenon in the AI ecosystem — an impending wave of flat rounds and down rounds. "Investors went crazy for AI startups with zero revenue, at higher valuations, which will be an issue," said Umesh Padval, managing director at Thomvest Ventures. Down rounds are on the riseIn 2022, 90.2% of AI startups in the US raised up rounds, while 6.5% raised down rounds, according to PitchBook data.

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Persons: —, we've, Andreas Riegler, Umesh Padval, Padval, Francesco Ricciuti Organizations: Service, Microsoft, Business, Big Tech, APEX Ventures, Jasper, Google, Thomvest Ventures, Runa Locations: London