Benchmark partners acknowledged at TechCrunch Disrupt that the longstanding VC unwritten rule of not backing competing companies is eroding under AI pressure. High-profile conflicts include Factory firing a board observer for his ties to rival Cognition, while investor Vinod Khosla backs both. Benchmark described the shift as a matter of necessity rather than preference.
Background
Venture capital firms have long followed an unwritten convention of avoiding investments in directly competing startups to maintain trust with founders. The AI funding boom has intensified competition for talent and deals, straining this decades-old practice.
- Source
- TechCrunch
- Published
- Oct 16, 2026 at 01:16 PM
- Score
- 6.0 / 10