AI Startups Average 7 Years to Exit, Outpacing Peers by 6 Years
16 October 2024•
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Artificial intelligence (AI) is not only transforming industries but also accelerating the timeline for startup exits. A recent CB Insights study reveals that AI startups exiting in 2024 (as of Q3) are doing so significantly faster than their non-AI peers. On average, AI startups have taken just 7 years to reach an exit—whether through IPO, M&A, or other methods—compared to 13 years for other startups. This 6-year gap underscores the surging demand for AI solutions, as corporations scramble to integrate advanced AI capabilities.
M&A activity is a key driver behind this trend, with major companies acquiring AI startups to secure a competitive edge. Firms like Nvidia, Zendesk, and Salesforce have been particularly aggressive in acquiring AI companies to enhance their AI-powered offerings.
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