<ul><li>AI startups are facing challenges in maintaining their valuations and are experiencing flat or down rounds.</li><li>Many AI startups are turning to 'acquihire' arrangements and secondary share sales to raise funding.</li><li>The trend of flat rounds and down rounds for VC-backed startups is at an all-time high in 2024.</li><li>Investor optimism towards AI startups has decreased, leading to a decline in valuations and alternative funding methods.</li></ul>

AI startups should brace for a wave of down rounds, investors say. Here's how it might play out.

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