AI can lift venture valuations without solving venture capital's liquidity problem.

A large financing helps a company build.
A higher valuation changes a fund's reported value.
A distribution returns value to the investor.

The distance between those events deserves more attention.

In my latest article, I examine the concentration of capital in AI, the difference between reported and realised returns, and the accountability investors should expect when exit timelines keep moving.

The questions go beyond whether AI will succeed:

• What price are investors paying?
• How much exposure overlaps across funds?
• What has actually been distributed?
• Who bears the cost of waiting?
• Do fund terms reward durable outcomes?

Technological progress can be real while investment returns disappoint. Price, ownership, timing and incentives still determine the result.

Read the full article:
https://doraradinsights.com/en/ai-venture-capital-valuation-liquidity-gap

What would you need to see before calling this a broad venture capital recovery?

#VentureCapital #ArtificialIntelligence #PrivateMarkets #CapitalAllocation #InvestorRelations