AI startup valuations have reached jaw-dropping levels, and there's a clear culprit behind it all—venture capital's relentless fear of missing the next unicorn. That's the take from Orlando Bravo, a heavyweight in private equity circles.

The dynamic is straightforward: every major VC firm doesn't want to be the one sitting on the sidelines when the next transformative AI company emerges. So they keep bidding up valuations, sometimes detached from traditional metrics. Founders know this. Investors know this. Yet the game continues.

It's a classic FOMO-driven market cycle. Billions flow into AI startups at increasingly eye-watering valuations, creating pressure on other funds to deploy capital faster. Whether these valuations stick or eventually face a reality check remains an open question for the crypto and broader tech investment community watching the space.