Even Benchmark thinks AI is eroding the venture pact against backing rivals
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Benchmark says the Valley’s rule against backing rivals is getting harder to keep.
The one-panel cartoon
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A high-tech meeting room with rows of computer monitors displaying various startups, one monitor prominently showing a message 'Breaking the Unspoken Rule' with a VC firm's logo subtly in the corner.
Caption: When the pact to not back rivals is broken by the pact itself
Read the full 3-panel strip
Based on the original story on techcrunch.com.
Editor's note
It's ironic that the tech industry, which prides itself on disruption and innovation, is struggling to adapt its old guard rules to the realities of AI. As companies rush to stay ahead in the AI race, the traditional pact against backing competing startups looks increasingly outdated and irrelevant.
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Panel 1
A conference room in a tech company’s headquarters. A large table with laptops, coffee cups, and a whiteboard. The whiteboard has a drawing of a robot with a thought bubble that says “Invest in everyone!
Characters: JASON (the CEO), SARAH (a venture capitalist)
JASON: So, Sarah, how are we supposed to stay true to the old pact against backing rivals?
SARAH: It’s getting harder. AI is everywhere now, Jason.
Panel 2
The same conference room. Jason and Sarah are looking at a laptop screen that shows a graph titled "Competitor Funding Over Time." The graph is erratic, with sudden spikes.
JASON: This graph looks like a stock market crash.
SARAH: AI startups are popping up like weeds. It’s tough to turn them down.
Panel 3
The conference room. Jason and Sarah are sitting back, looking exasperated. The whiteboard now has an arrow pointing to the AI robot, with the text “Competing Interests” written beneath it.
JASON: At this rate, we’ll be funding our own competition.
SARAH: Welcome to the future, Jason. AI is eating its own tail.
SARAH: Welcome to the future, Jason. AI is eating its own tail.
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