TLDR:
AI tools are transforming VC investment, with firms like NGP Capital using their own platforms to scout for investments. While financial VC firms have embraced AI, corporate venture capitalists (CVCs) are behind in adopting this technology. CVCs lack the maturity, independence, and resources to implement AI-based investing effectively. Bias in AI models is a concern, but with proper monitoring and awareness, it can be mitigated. As CVCs become more professionalized, they may start utilizing AI for deal scouting, but more sophisticated models for investment decisions are on the horizon for those with ample resources.
Article Summary
Artificial intelligence is revolutionizing venture capital investment, with firms like NGP Capital leveraging AI-powered platforms to discover potential investments. While financial VC firms have integrated AI into various functions, CVCs lag behind due to factors like internal processes and lack of data. Implementing AI requires significant financial investment, making it feasible only for large funds like NGP Capital, which manages $1.7bn in assets. Despite the potential benefits of AI, concerns about bias in models persist, prompting the need for careful monitoring and mitigating strategies. CVCs may eventually adopt AI for smarter deal sourcing, but challenges related to resources and independence need to be addressed for successful implementation.
