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Why AI startups are selling the same equity at two different prices

Read the full articleWhy AI startups are selling the same equity at two different prices on TechCrunch
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What Happened

Some AI founders are using a novel valuation mechanism to manufacture unicorn status.

Our Take

This is secondary market fraud dressed up as "novel valuation mechanics." Selling identical shares to different investors at different prices to manufacture headline valuation—that's not legal in most jurisdictions.

Venture's stupid enough now that we're back to pre-2000 hustle theater. A unicorn press release doesn't mean anything if the cap table's fundamentally dishonest.

Watch these companies implode when the next fundraise needs reconciliation.

What To Do

If you're an employee at an AI startup doing this, start job hunting now — the cap table's toxic and it will blow up.

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