The vast majority of private companies, particularly the 2021 unicorn cohort, are struggling to raise new funds or exit.
Extreme concentration of capital into a few 'winner-take-all' companies increases the cost and risk of not backing a top performer.
The potential for a price war between heavily capitalized players like OpenAI and Anthropic could compress margins.
The market has not produced a significant number of new centicorns in the past few years, which could be a warning sign for the ecosystem's long-term health.
Opportunities Identified
Investing in the elite 'Magnificent Eight' private companies which are demonstrating superior performance.
Upcoming IPOs of major players like SpaceX and Anthropic offer significant liquidity events and public market entry points.
The AI ecosystem is projected to grow from $140B to $1.2T by 2028, driven by consumer, advertising, and enterprise revenue.
The supply chain for AI, including semiconductors and memory, is poised for massive growth to meet infrastructure demands.