[version_five]

If this was NFTs, what would the winning strategy have been? Strike when the iron is hot and hype is at the maximum and hope to get some exits or subsequent rounds asap, or draw it out. From a portfolio perspective, it's just one batch, might as well go all in and maximally capitalize on hype, no?

[voytec]

NFT strategy was rather simple: hire so called celebrities to advertise the scam, profit from suckers, pull the rug.

[version_five]

Sure, and the faster you did that the more you would have made. I don't think AI is equivalent, the emperor has some clothes on here, they're just not quite as nice as he's been led to belive, but the same principle applies. Move fast, break stuff, sell while the cat's still in the bag.

[seabass-labrax]

These gigantic valuations for AI startups are only there because the startups aren't choosing to exit yet - big demand, low supply. Whilst acknowledging my lack of a crystal ball, I would imagine that once the few biggest companies have had their fill of acquiring AI startups for billions at a time, the remaining startups won't be so desirable any longer.

YC needs to make sure they actually have a market to sell these startups to before their valuation starts dropping again. Predicting that requires a certain kind of intuition, whereas 'traditional' software startups have a more predictable lifecycle. I'm not the 'hype type' myself - I don't really trust stocks without intrinsic value behind them :)

[seabass-labrax]

I'm really curious to know why my root comment saying 'this investment strategy is very risky and would make me nervous' has loads of upvotes, but my parent comment here - which I think has broadly the same message phrased in a different way - has three downvotes. Please enlighten me :)