In 2024, 31% of all venture capital funding was allocated to just 20 deals, setting a record for investment concentration. This represents a sharp increase compared to 6%-8% of VC capital going to the top 20 deals from 2020 to 2022. The majority of these investments were directed toward leading companies in artificial intelligence, such as OpenAI, Databricks, Anthropic, Cursor, and Anysphere. Some of these companies, like Cursor and Anysphere, have achieved valuations as high as $10 billion, with Cursor reportedly generating $100 million in annual recurring revenue (ARR). Critics have raised concerns about the implications of such concentrated investment, arguing that it could stifle innovation and limit opportunities for smaller startups. Observers are urging limited partners (LPs) to advocate for more diversified and risk-seeking investment strategies.