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Will AI disrupt Venture Capital or not…?

I’m a Libra. So I’ll argue with myself on a regular basis. With that in mind, you’ll understand why I’m always thrilled to have competing views cross my desk in rapid succession. Like this week, where it’s been posited that AI is disrupting VC while also offering that VC is the last bastion of humanity’s AI disruption. So who’s right…? Only time will tell.

Fast Company shares the current impacts of AI on Venture Capital:

This means it now takes the least amount of money it ever has to grow and scale a company. As a result, revenue scale is being achieved with the fewest number of employees ever and profitability is soon to follow suit.

So from this perspective, because the companies are changing the way that they’re built, AI will disrupt the targets of VC investment.

While on the other hand, Marc Andreessen sees the actual VCs themselves as potentially un-disrupt-able by AI:

Andreessen described his job as a nuanced combination of “intangible” skills, including psychological analysis of the entrepreneurs he works with: “A lot of it is psychological analysis, like, ‘Who are these people?’ ‘How do they react under pressure?’ ‘How do you keep them from falling apart?’ ‘How do you keep them from going crazy?’ ‘How do you keep from going crazy yourself?’ You know, you end up being a psychologist half the time.”

So if fewer VC dollars are needed but the VCs themselves are still playing the same game, how will that work out…? It will be interesting to see where this one goes.

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