Aug 21, 2026 – 5.00amAirtree Ventures has put founders of its vast portfolio of companies on notice that it will sell out of start-ups if they cannot show that their businesses are safe from the massive disruption caused by artificial intelligence.The warning from one of the country’s largest and most influential venture capital firms was issued as part of an update to investors earlier this year, a tightly held document obtained by The Australian Financial Review that said it “would be remiss to pretend” AI was not hurting older start-ups.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles
Airtree reads the riot act to start-ups falling behind in the AI race
In a note to investors, the venture capital giant said it was “pressure-testing” its portfolio and checking if companies had a “credible AI story”.
TL;DRAI
Airtree Ventures, Australia's dominant VC, warned portfolio founders it will divest from start-ups unable to withstand AI-driven disruption. The ultimatum signals venture capital's zero-tolerance for AI-lagging founders; survival now requires demonstrable AI resilience or risk loss of investor backing and market relevance.
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