AI & Machine Learning Startup Benchmarks 2026
Based on data from 207 startups in The Founders' Group network.
Key Metrics
Median MRR
$5K
Monthly recurring revenue
Median ARR
$67K
Annual recurring revenue
Median Burn Rate
N/A
Monthly cash burn
Median Runway
18 mo
Months of runway remaining
Avg Team Size
2.5
Full-time team members
Median LTV:CAC
N/A
Lifetime value to acquisition cost
Avg Gross Margin
79.2%
Revenue after COGS
% With Revenue
26.6%
Startups generating revenue
% Profitable
0.0%
Startups currently profitable
Avg YoY Growth
N/A
Year-over-year revenue growth
Grade Distribution
A
13 (6%)
B
66 (32%)
C
27 (13%)
D
10 (5%)
F
91 (44%)
Top Cities
San FranciscoSamsunDubaiNew YorkProsper
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Frequently Asked Questions
How many AI & Machine Learning startups are in the benchmark?
Our benchmarks are based on 207 AI & Machine Learning startups in The Founders' Group network. Data is refreshed regularly as new startups join.
What metrics matter most for AI & Machine Learning startups?
Key metrics include MRR growth rate, burn rate relative to runway, and unit economics (LTV:CAC ratio). The specific thresholds vary by funding stage — pre-seed founders should focus on product-market fit signals, while seed-stage startups need strong retention and growth rates.
How are grades calculated?
Grades are based on a composite score across 6 tiers: Survival & Truth (revenue, burn, runway), Engine Health (LTV, CAC, unit economics), Retention (churn, NRR), Growth Efficiency (MoM/YoY growth), Market & Narrative (TAM, competition), and Traction & Team. Each tier is weighted and the final score maps to a letter grade.
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