Jaeden Schafer

higher valuation.

This is to incentivize the early investors to kind of get in and to get their term sheets written and done fast so it can build momentum for the round.

It's an interesting structure to see on a bigger company like this because I see this a lot for smaller organizations.

But in any case, then by the time the whole round's done, even if there's only a small amount of people that are signing off on the investment at the $1 billion mark, they can say we've reached a billion dollar valuation.

And then anyone that got in earlier

It's like their shares are instantly worth more as well.

So I do think this is interesting.

Investors said that this kind of structure has become really common for the most in-demand AI startups.

We're seeing more and more of these.

Resolve AI's annual recurring revenue is about $4 million right now.