#synthetic-users

#synthetic-users

Although some equity was sold at a $1 billion valuation, a lower valuation for other investors resulted in a blended valuation below $1 billion, sources told TechCrunch. Multi-tier valuations within the same round are an unusual mechanism in venture capital, but investors say they are becoming increasingly common for desirable AI startups in the current market. This approach allows the company to report a higher valuation for a marketing "headline" while simultaneously offering better, less expensive terms to specific investors.