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AI Impact on Capital Formation in Startup Ecosystem
The chapter explores the transformative impact of AI on capital formation at the seed stage of companies, drawing parallels to the role of web hosting services in lowering startup costs. It discusses the efficiency gains and productivity enhancements enabled by AI in the modern startup landscape, shifting towards more capital-efficient practices and questioning the need for large capital injections. The conversation also delves into the challenges of raising seed capital, the introduction of new venture models, and the potential societal and economic implications of democratizing access to funding.