Businessstartups
Benchmark: AI is Eroding the Venture Pact Against Backing Rivals
The traditional venture capital norm of avoiding investments in direct competitors is under significant pressure due to the rapid expansion of AI startups. Benchmark partners recently admitted that the industry's unwritten rules are struggling to keep pace with the evolving landscape. As AI companies pivot and expand their product offerings, portfolio conflicts are becoming inevitable. While firms like Benchmark still prioritize early-stage exclusivity, they acknowledge that the current market dynamics make absolute non-compete agreements increasingly difficult to maintain.