- Item type
- Periodical
- Language
- English
- Source
- Fortune.com. 6/3/2025, pN.PAG-N.PAG. 1p.
- Publication date
- 03/06/2025
The article discusses the impact of artificial intelligence (AI) on the venture capital (VC) landscape, particularly the emergence of "zombie" VC firms—those that have raised funds but lack active investments. Venture capital executives predict that AI will enable startup founders to build businesses more efficiently, potentially reducing the need for multiple funding rounds and leading to increased competition among VCs for fewer investment opportunities. While some experts believe AI will generate more startup ideas and opportunities, others warn that many VC firms may struggle to survive in a challenging market characterized by a lack of liquidity and poor performance metrics. The article highlights a significant increase in U.S. zombie firms, from 382 in 2021 to 574 in early 2025, and suggests that only those VCs with unique value propositions will thrive in the evolving ecosystem. [Extracted from the article]
