How dual-valuation deals became pervasive in the current frenzied AI funding cycle, with prestige VC firms monetizing their brand names by getting better prices (M. Sriram/Newcomer)

The AI funding cycle has seen dual-valuation moves become common practice. In these arrangements, investors agree to two different valuations for the same round, often favoring the lead VC. Prestige venture capital firms are using this mechanism to convert their brand strength into better pricing terms. This represents a noticeable shift from standard uniform pricing in funding rounds.

The provided material does not describe any direct costs associated with adopting dual-valuation deals. It does not mention legal, administrative, or negotiation expenses that firms might incur. Consequently, we cannot determine from the source what financial or operational burden the practice imposes. The absence of such detail means any claim about cost would be speculative.

Likewise, the source does not specify conditions under which dual-valuation deals would cease to be effective. It does not discuss market saturation, investor pushback, or regulatory limits that could stop the trend. Therefore, we cannot point to a point where the practice stops working based on the given information. Any statement about limits would require additional data not present in the excerpt.