AI-Powered Venture Capital

Suraj Venkat
TekTorch.ai
Published in
2 min readSep 26, 2019

Data is at the heart of investing. A successful investor relies on data-driven decisions. But VC firms are under-utilizing AI. According to a study only 38% VCs are utilizing the power of data and AI.

Some not most Venture Capital firms are adopting AI to remove inefficiencies in their operations and AI is giving these firms the necessary analytical prowess to disburse their capital in the most profitable manner.

Some use cases of AI in VC:

  1. Sourcing — Opportunities present themselves and vanish quickly in the VC space, and timing is everything in investing — AI can be utilized to spot and identify trends, source deals and reach out to prospects.
  2. Due Diligence — AI can be used to fast track the due diligence process which can take weeks, down to a few minutes. Besides bringing speed, accuracy in the DD process can be improved too!
  3. Modeling Risk-Return — Investors like to understand risk-return attached to their investments, AI can be used to map the markets, understand the financials and scenario of a particular opportunity and model risk-return.
  4. Founder Personality Assessment — Certain personality traits are found to be more common in founders who go on to build game-changing companies. AI can be leveraged to understand founder personality traits through NLP (Natural Language Processing) and sentimental analysis. This may be done by asking AI guided situational questions to founders.
  5. Resource Management for hands on investors — AI can be utilized to guide VCs about what resources in the form of connections, or legal/technology resources they can effectively utilize to benefit their portfolio companies the most.

The VC space can benefit enormously from AI upgrades. Are you part of a VC firm looking for a trusted AI partner to give your firm a boost? Book a strategy session here

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Suraj Venkat
TekTorch.ai

Futurist. I love studying and writing about how state of the art technologies can solve business problems.