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Siddharth K Nair

Thatmoonemojiguy 🌝 • 1m

Understanding the "Seed-Strapped" AI Startup Revolution Ever wondered how some AI startups are reaching massive valuations without huge rounds of venture capital? It's called "seed-strapping," and it's redefining success in the tech world. What is "Seed-Strapping"? Instead of the traditional "growth at all costs" model fueled by constant fundraising, seed-strapped companies prioritize profitability and sustainable growth from day one. They aim to generate revenue early, relying on customer payments rather than investor capital. Why is this happening now in AI? * Plummeting GPU Prices: The cost of powerful computing resources has dropped significantly, making AI development more accessible and less capital intensive. * Robust Open Source AI Models: The availability of high quality open source AI models means startups don't need to build everything from scratch, accelerating development and reducing R&D costs. The Impact: This approach allows founders to retain more equity and control over their companies. Success stories like SecurityPal AI, Surge AI, and BrightAI demonstrate that achieving significant revenue and even billion dollar valuations is possible with minimal, or even no, external investment. This shift challenges traditional VC models, which often rely on frequent valuation markups. For more info visit : https://share.google/iX3gDQW1eYuRaTCR1

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