The AI Trap That Is Quietly Wiping Out Angel Investors

Most “AI-first” startups are being priced like software and built like infrastructure. There is one number that exposes the difference instantly, and most angels never ask for it.

Most angels think they are underwriting software when they write checks into “AI-first” startups. They are not. They are underwriting variable cost machines with fragile pricing power and capital structures that behave nothing like SaaS. That mismatch is about to torch a lot of portfolios.

The uncomfortable part is not that founders are confused. It is t…