In a sign of the heated AI startup market, Dan Siroker, the founder of Rewind AI, is asking potential investors to pay to meet him. Siroker is requesting a $100 fee for bookings to manage his time and ensure the potential investor’s sincere interest.

His decision comes against a backdrop of high demand from venture capitalists (VCs). He shared a link to his startup’s pitch and an offer form in the last spring fundraising effort; it resulted in over a thousand investors expressing interest, with 170 bids to sift through. He ultimately raised $12 million for Rewind AI at a valuation of $350 million.

Having enough cash in the bank to operate for four more years, Siroker isn’t actively fundraising now but seeks to build relationships with investors. Rewind AI’s digital assistant, launched in late 2022 and developed by a team of 22, records everything a person does on their computer, making the content searchable. The service comes with a free tier and a $19 monthly subscription to unlock more features.

To meet with founders of hot startups, VCs are willing to pay, pointing to a return to the boom times of the startup-funding environment. However, this could be at odds with building sustainable partnerships. Siroker believes that the $100 booking fee could also weed out self-important investors.

At the opposite end of the spectrum, many startups, having survived the last two years by cost-cutting and headcount reduction, will need to seek capital this year as previous funding dries up. The same scarcity of capital is affecting startup-focused funds. Last year, the lowest number of funds closed since the tech bull run began in 2013, and cash raised fell significantly.

VCs’ interest in AI-powered software, apps, and infrastructure continues unabated; however, available capital is increasingly directed to fewer companies, leading to more binary outcomes.

Source: AI startup founder asks VCs to pay $100 to meet him }}.