Why are Investors Running Behind AI Startups? [Video]

On 17 October 2024, Marty Kausas, the co-founder of Pylon, a startup that supports B2B companies, took to the social media platform LinkedIn to announce the unexpected funding that the company raised. “We raised Pylon’s $17M Series A in 14 days. We didn’t need the money,” Kausas said. 

Being cash flow positive and having steady business growth, his team was busy building the product than focusing on fundraising. 

“We really did not want to fundraise. We felt it would be a massive distraction since we had only burned $300k of our $3.3M previously raised,” Marty said. 

But call it a stroke of fortune. In a span of two weeks, Kausas and his two other co-founders had funding offers from four of the five investors who showed interest in their business. Not wanting to risk losing the opportunity, they accepted the funding, ceding some stakes. 

Plush with funds, Pylon now plans to hire more engineers to build a …