Shares of AI and machine learning startups

 

Shares of AI and machine learning startups account for 25% to 30% of total investor demand on EquityZen's secondary share marketplace, per co-founder and chief strategy officer Phil Haslett.  AI and ML startups have been the most in-demand sectors every month so far this year. Investors unable to participate in funding rounds of AI startups are turning to the secondary markets to scoop up shares from founders, executives, and investors.  AngelList CEO Avlok Kohli confirmed the trend, adding, "The interest from investors in secondaries within the AI bucket on AngelList has increased by sixfold over the past few months." Per AngelList, AI startups accounted for 19% of all secondary transactions on the platform at the end of Q1 2023, up sixfold from 3% at the start of 2021.  Another secondary marketplace ForgePoint witnessed a similar trend, with total buy interest for AI startups increasing from 6% in April to 12% in the subsequent month.  ForgePoint's head of investments, Howe Ng, adds that most of the transactions involve late-stage startups, past their Series C or Series D funding rounds, typically where the employee stock options have vested over time