I found the following commentary from James Currier of NFX insightful:
_We are in the final 10 years of venture capital as we have come to know it. A.I. is going to remake the startup industrial complex, from its core. Venture firms will have to remake themselves into a combination of people and A.I._
_Let’s be honest: Much of what a typical venture capitalist does—reading, summarizing, and ranking—is what large language models already do extremely well. Growth-stage VCs will be affected first. That’s where decisions are already made based on data, so it makes sense for A.I. to take over. Seed will be affected last: There’s less data available. Intangible human elements matter most._
_A.I. will ultimately level the playing field among investors, making the market more efficient and lowering alpha, as software has done in relation to stocks and bonds over the last 40 years. But as we’ve seen with hedge funds, the best VC firms will get further ahead with a combination of A.I. and processes that give them sustainable information and operating advantages._
Link to full piece:
_We are in the final 10 years of venture capital as we have come to know it. A.I. is going to remake the startup industrial complex, from its core. Venture firms will have to remake themselves into a combination of people and A.I._
_Let’s be honest: Much of what a typical venture capitalist does—reading, summarizing, and ranking—is what large language models already do extremely well. Growth-stage VCs will be affected first. That’s where decisions are already made based on data, so it makes sense for A.I. to take over. Seed will be affected last: There’s less data available. Intangible human elements matter most._
_A.I. will ultimately level the playing field among investors, making the market more efficient and lowering alpha, as software has done in relation to stocks and bonds over the last 40 years. But as we’ve seen with hedge funds, the best VC firms will get further ahead with a combination of A.I. and processes that give them sustainable information and operating advantages._
Link to full piece:
