AI Series‑A multiples vs non‑AI

Series A investors are paying far more for artificial intelligence startups than for other software companies, and the gap widened through 2025. (pitchbook.com) A revenue multiple is the price investors pay divided by a startup’s annual recurring revenue, or contracted software sales. A company valued at $100 million on $2 million of annual recurring revenue is trading at 50 times revenue. (a16z.com) That math helps explain why some market posts put artificial intelligence Series A deals at roughly 40 to 60 times revenue while non-artificial-intelligence deals sit closer to 8 to 12 times. Andreessen Horowitz said the median enterprise artificial intelligence company in its sample reached more than $2 million in annual recurring revenue in its first year and raised a Series A nine months after monetization. (a16z.com) PitchBook said in September 2025 that artificial intelligence startups accounted for 63.3% of United States venture deal value over the prior 12 months, up from 40.3% a year earlier. The same report said median 2025 pre-money valuations for artificial intelligence companies at Series D and later were roughly triple non-artificial-intelligence peers. (pitchbook.com) The pricing gap sits inside a venture market that recovered unevenly in 2025. PitchBook and the National Venture Capital Association said half of all venture dollars went into just 0.05% of deals, while KPMG said United States venture investment reached $339.4 billion in 2025, near the 2021 peak. (pitchbook.com) (kpmg.com) The largest checks kept going to artificial intelligence companies. KPMG said the top eight United States venture deals in the fourth quarter of 2025 accounted for more than $32 billion, led by Anthropic’s $15 billion round, while PitchBook said a handful of companies now account for an outsized share of total unicorn value. (kpmg.com) (pitchbook.com) Investors are not paying those prices for every company with an artificial intelligence label. Andreessen Horowitz said later rounds will still depend on retention, engagement, and churn, and PitchBook said nearly 15% of rounds in 2025 were down rounds, close to the decade high reached in 2024. (a16z.com) (pitchbook.com) That leaves founders with a split market in April 2026: companies showing fast artificial intelligence revenue growth can raise on software multiples that would have looked extreme two years ago, while the rest of venture still faces tighter pricing and fewer easy rounds. (cbinsights.com) (pitchbook.com)