Investors seeking shares in promising AI startups are turning to secondary markets, as they look for opportunities to invest in a rapidly growing industry. Venture capitalists have been scrambling to back emerging AI startups, but many investors are being shut out of traditional funding rounds. Instead, they are turning to secondary markets, where shares in buzzy AI startups are being sold by founders, employees, and even investors and VC funds.
Shares in AI and machine learning startups are increasingly in demand in the secondary market, representing over 25% to 30% of the total investor demand across categories. AngelList, a platform that manages funding transactions for VC firms and investors, has seen a significant increase in secondary rounds for the sales of shares in AI startups. ForgeGlobal, a marketplace for secondary transactions of startup shares, is experiencing a similar excitement from investors in AI startups.
While some VCs and investors are trying to buy shares of AI startups they couldn’t access previously, other VCs are trying to increase their positions. Secondary marketplace Caplight has also seen considerable enthusiasm in AI startups over the past six months, specifically around buzzy AI companies such as OpenAI, Hugging Face, and Anthropic.
According to reports, OpenAI is seeing heavy buy interest in the secondary markets, but shares are not yet available. Microsoft-backed OpenAI just raised $495 million through a share offering that valued the company $27 billion to $29 billion. Anthropic also raised $450 million from a number of investors, including Google, that reportedly valued the startup at $4 billion.
Frequently Asked Questions (FAQs) Related to the Above News
Why are investors turning to secondary markets for AI startup shares?
Investors are turning to secondary markets as they are being shut out of traditional funding rounds and they are seeking opportunities to invest in a rapidly growing industry.
What percentage of total investor demand across categories is represented by shares in AI and machine learning startups in the secondary market?
Over 25% to 30% of the total investor demand across categories is represented by shares in AI and machine learning startups in the secondary market.
Which platform manages funding transactions for VC firms and investors and has seen a significant increase in secondary rounds for sales of shares in AI startups?
AngelList, a platform that manages funding transactions for VC firms and investors, has seen a significant increase in secondary rounds for sales of shares in AI startups.
Which marketplace for secondary transactions of startup shares is experiencing excitement from investors in AI startups?
ForgeGlobal, a marketplace for secondary transactions of startup shares, is experiencing excitement from investors in AI startups.
Which buzzy AI companies are seeing considerable enthusiasm in secondary markets, according to Caplight?
Caplight has seen considerable enthusiasm in buzzy AI companies such as OpenAI, Hugging Face, and Anthropic over the past six months.
Which AI company is seeing heavy buy interest in the secondary markets, but shares are not yet available?
OpenAI is seeing heavy buy interest in the secondary markets, but shares are not yet available.
How much did Anthropic raise from a number of investors, including Google, and reportedly value the startup at?
Anthropic raised $450 million from a number of investors, including Google, and reportedly valued the startup at $4 billion.
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