VCs are growing wary of ‘AI-washing’ – but real innovation is still winning investors
The article discusses the growing wariness of venture capitalists (VCs) towards "AI-washing" in the startup ecosystem. While AI-driven investments reached a 10-quarter high of €108.3bn in Q1 2025, investors are becoming more discerning. In recent years, startups with even the illusion of AI innovation were able to secure high valuations, but VCs are now more cautious about such practices. The CEO of Gradient Labs, an AI-focused venture firm, suggests that real innovation is still winning over investors, as they seek startups with well-implemented and genuinely useful AI applications. The article highlights the shift in the VC landscape, where investors are becoming more selective and demanding genuine innovation, rather than being swayed by surface-level AI claims.
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