Shulou(Shulou.com)11/24 Report--

On the morning of June 5, Beijing time, Paul Graham, a venture capitalist and co-founder of Y Combinator, a famous start-up incubator in the United States, recently said publicly that public market investors lack channels to participate in the AI wave, because almost all excellent AI companies are private enterprises.

Many AI startups are new, may be more than five years old, and they are highly dependent on private capital, such as VC and PE. Ordinary retail investors may not have similar funds, or they may not be able to invest directly in AI startups.

If Tuyuan PexelsAI start-up company wants to enter the public stock market, it may take several years, and most AI companies may not be able to meet the threshold in terms of size and revenue, and may not have the opportunity to enter the public stock market. This is not a good time for companies that want to go public. At present, the IPO market is in a period of volatility, and listing is not attractive enough, even large and successful private enterprises are not willing to go public at this time.

How to allow public market investors to participate in investment? Graham believes that there are two paths: one is for listed companies to acquire AI startups and become AI companies, and the other is for startups to enter the public stock market at a faster rate. However, Graham believes that neither of these paths is a good choice, and that the first path may be just a matter of pandering to market opinion, while AI startups who choose the second path may just want to get investment.

Some people disagree with Graham that public stock market investors can invest in Nvidia, Microsoft, Alphabet or Meta. The stock price of AI concept stock has soared this year, but it is mainly institutional investors, not retail investors, who are driving the flames.

Graham hinted that private investment in AI startups has a chance to make huge profits. In the first quarter of this year, generative AI startups received $1.7 billion in VC investment, and $10.7 billion worth of deals have been announced but not closed. In the first quarter of three years ago, AI startups raised just $250 million.

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