Crunchbase News AI’s report underscores a critical disconnect: while AI startups are soaking up unprecedented venture capital, the LPs funding these deals are reportedly in net-negative cash flow territory. This liquidity squeeze could force VCs to prioritize exits over long-term growth, reshaping term sheets and boardroom dynamics. Founders, dazzled by headline-grabbing funding rounds, may be underestimating how LP pressures could constrain their runway or exit options. The AI boom’s sustainability hinges on whether these startups can deliver returns before the cash flow crunch hits harder.