tomtunguz.com · 2024-08-16 · 657d

AI Public & Private Premia for AI Companies

AI-focused companies trade at approximately 2x forward multiples compared to non-AI peers in public markets, while GenAI startups in Series A raise at 1.5-2x valuations of traditional software companies. Unlike historical patterns where private markets applied higher multiples than public markets, both arenas are currently moving in parallel, suggesting no valuation cliff between private and public AI company valuations.

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Metrics in this report

AI Companies Market Share

30%percent

Proportion of Series A funding rounds in 2024

Forward Multiple Premium (AI vs Non-AI)

2.0xmultiplier

median

Publicly traded companies with AI products/strategies vs non-AI peers

Post-Money Valuation Premium (GenAI)

1.5-2.0xmultiplier

range

Series A GenAI startups vs all software companies