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Past Performance Does Not Equal Future Results

Apr 18, 2025
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ANECDOTE

Declining Fortune 500 Company Tenure

  • The average tenure for companies on the Fortune 500 declined from 67 years in the 1920s to only 15 years today.
  • Increased innovation pace and M&A activity contribute to faster disruption of mature companies.
INSIGHT

Faster Early Growth for AI Companies

  • AI-native companies grow revenue much faster than SaaS companies from previous cycles, especially in early stages.
  • Growth plateaus in AI companies appear at scaling stages beyond initial rounds.
INSIGHT

Open Source AI Enables Rapid Growth

  • Open source and accessible AI models reduce product development barriers and equalize the playing field.
  • Rapid growth risks "fake product market fit" where products scale without true defensibility or enterprise adoption.
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