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AI-built startups could fuel increase in venture capital 'zombie' funds


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Published in Stocks and Investing on by Fortune   Print publication without navigation

The number of zombie VC funds has jumped by 50% since the end of 2021.

The article from Fortune, dated June 2, 2025, discusses the current state of AI venture capital, highlighting a challenging environment where many AI startups are struggling to secure funding and are at risk of becoming "zombies" due to insufficient capital to sustain operations. Despite the difficulties, there is a noted increase in mergers and acquisitions within the sector, as larger firms look to absorb promising AI technologies. The article also mentions that some AI companies are preparing for IPOs, with Bain Capital's involvement in several high-profile deals signaling continued interest from major investors. The overall sentiment is cautious optimism, with experts suggesting that while the market is tough, strategic investments and consolidations could pave the way for future growth in the AI industry.

Read the Full Fortune Article at:
[ https://fortune.com/2025/06/02/ai-venture-capital-zombies-fundraising-mergers-ipos-bain-capital/ ]

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