Is ROMO the New FOMO?
Considering all the funding that has gone almost blindly – and we’re being generous here – to startups where the product and pitch deck are centered around AI, we’ve come to the conclusion that, at least in investors’ minds, AI is an acronym for ‘All In.’
AI Startups Are Failing at Alarming Rates: Why 90% of AI Ventures Die Within Their First Year, wrote VDWayne on Medium, and of course for the usual reason: no product/market fit, lack of market demand, and a new one, for those who still believe that AI is a do-all and end- all: overestimation of AI capabilities.
Another good read for founders and investors still chomping at the bit to cast their lot into the AI FOMO fever: I Analyzed 100 AI Startups That Failed in 2024 — Here’s What No One Tells You and noted Jeremy Merrell Williams in his piece, “2024 pulled the mask off the AI game. The hype was loud, the VC checks were fat, but the fall-off? Brutal. We’re talking 254 venture-backed startups filing for bankruptcy in just the first quarter. That’s a 60% jump from 2023 and over 7x the rate in 2019. And AI startups? They went down twice as fast as regular tech.