AIThe Next Webabout 12 hours ago
AI Startups Run 25% Smaller, Study Finds
1 min read
A Harvard Business School and INSEAD study of Y Combinator and venture-backed startups from 2020 to 2024 found AI-native firms are 25% smaller, employ 13% more engineers, and have roughly 15% fewer entry-level workers and managers. These firms raise similar funding and achieve comparable valuations, concentrating opportunity among senior, elite-educated, Silicon Valley-based, male workers.
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Forbes leads with the scale of downsizing, while The Next Web focuses on the hiring shift away from junior roles.
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