AI Cash Boom Masks Rise of ‘Zombiecorns’ as Funding Gaps Widen in Startup Ecosystem

‘The AI boom has fueled a wave of overfunded startups that look healthy on the surface’: Cash is flowing into AI startups, but investors have warned of the rise of ‘zombiecorns’ as companies struggle with revenue growth

While cash is flowing into the AI startup space, alarm bells are ringing over the long-term viability of many up-and-coming startups.

AI cash boom masks rise of ‘zombiecorns’ as funding gaps widen in startup ecosystem

Artificial intelligence continues to dominate venture capital headlines — and cheques — but a new report from Silicon Valley Bank (SVB) warns the surge in AI investment is masking a growing divide in the startup ecosystem, with many non-AI ventures starved of capital and so-called ‘zombiecorns’ now on the rise. According to SVB’s State of Enterprise Software report, published Tuesday, AI-focused venture funds accounted for 40% of all U.S. VC fun…