The fundraising tactic AI startups are using to juice valuations
- Feb 25
- 1 min read
AI startup Serval closed a private deal with venture-capital giant Sequoia in December that valued it at less than $400 million. Days later, Serval announced a new milestone from another funding round.
This time, its valuation had topped $1 billion, giving it Silicon Valley’s coveted “unicorn” status.
Serval’s $600 million valuation surge in less than a week is an example of a fundraising tactic that has grown increasingly popular for sought-after startups and top-tier venture-capital firms in recent months.
A startup sells a stake of its company to a leading investor at one valuation and, either soon after or at the same time, offers additional shares to other backers at a much higher valuation.
Read the full story | WALL STREET JOURNAL
