ai technologies Help startups become more agile and profitable, according to a recent Battery Ventures report. In turn, Battery anticipates that startups with lower consumption will be worth more as long as their growth rates remain attractive.
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It is an interesting thesis. When we consider ai from a startup perspective, we tend to think about what ai-powered software startups will build themselves. Changing the question of what ai software will do for startups, Battery can see a future where startups are worth a higher multiple of their revenue. That could make the most nascent, venture-backed technology companies existing startups more likely to grow to previous valuation marks.
What is at stake is the value of software revenue. The rally in tech stocks in the 2021 market glut crash is a well-worn story at this point, as is the view that startups should burn less than before when money was cheaper and more plentiful.
But what good is a profitable startup if it can’t grow quickly? Little, it seems. So what venture investors (founders, too) would like most is a world where every dollar of revenue their startups generate is worth more. That situation would help make the risk mathematics clearer.
It’s much easier to invest in cash-burning startups when the revenue they’re generating is worth, say, $9, rather than $6. Or $4.
The battery argument is as follows:
