As big tech companies compete to get ahead in AI, they’re snapping up opportunities in the start-up ecosystem. Wary of regulatory scrutiny and potential hurdles, tech giants are turning to transactions that secure the technology and the people from start-ups but leave behind the companies themselves. Venture investors should monitor this trend closely. There’s liquidity to be sure, but some argue that the deal structure jeopardizes alignment among investors and founders. Read more here about these transactions and Google’s recent deal with Character.AI, an underlying GroveStreet portfolio company.
Learn more about us or reach out to schedule a meeting.