Making Tech Headlines · Page 10

Venture Capital’s Rival Rule Meets a Crowded Room

Benchmark says Silicon Valley’s convention against backing rival companies is becoming harder to maintain in the AI era. The pressure concerns a longstanding expectation about how investors manage relationships with competing businesses. The stakes are trust and access, not merely etiquette. Founders want support without wondering how close their investor sits to the competition. AI’s broad reach makes the old boundaries harder to draw. If every company becomes an AI company, the seating chart starts to resemble a family wedding where everyone has been advised not to sit beside someone else. The room has not necessarily grown with the guest list.

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