AI's impact on VC

Extracted Attributes

• Economic Impact

  Deflationary impact on startup costs

• Strategic Focus

  Capital efficiency and profitability at young companies

• VC Adoption Rate

  92% of firms using AI for operations

• Global Funding Share

  Over 50% of global VC funding (as of 2025)

• Regulatory Environment

  Aggressive M&A oversight leading to a chilling effect on exits

• Primary Operational Uses

  Due diligence, relationship management, deal discovery, and task automation

Timeline

• 55% of VC investors report using AI to accelerate company research. (Source: Web Search Results)

  2024-01-01

• AI commands more than 50% of global VC funding; 64% of investors use AI for research and 76% for task automation. (Source: Web Search Results)

  2025-01-01

• Global exit value reaches $149.9 billion in Q3, the highest since 2021, driven by renewed IPO activity and AI dominance. (Source: Web Search Results)

  2025-09-30

• Projected 'insatiable' hunger for AI in VC, exemplified by massive seed rounds like the $2 billion raise for Thinking Machines Lab. (Source: Web Search Results)

  2026-01-01

Andy Konwinski

Andy Konwinski (born October 15, 1983) is an American computer scientist and billionaire businessman. He is known for co-founding Databricks, a data and AI platform, and for his early contributions to Apache Spark. He also co-founded Perplexity, an AI-powered search engine, the early-stage venture capital firm Laude Ventures, and Laude Institute, a nonprofit institute for computer science researchers. His work bridges research and real-world deployment in software infrastructure and artificial intelligence.

Web Search Results

• Revolutionizing Venture Capital: The Power of AI and Relationship ...

  As previously mentioned, AI's role in VC extends beyond mere data analysis; it provides a robust foundation for making informed investment decisions by identifying market patterns, evaluating startup potential, and forecasting industry trends. 4Degrees complements this data-driven approach by enhancing the relational aspects of venture capital by managing and optimizing an investor's professional networks, a strategic advantage of every VC firm. [...] As we look towards the future, AI will play a significant role in venture capital. The integration of AI technologies has already begun to transform the landscape, offering deeper insights, enhancing decision-making, and streamlining operations. The next frontier will likely see AI becoming even more ingrained in the venture capital ecosystem, with innovations in predictive analytics, machine learning algorithms, and natural language processing leading the charge. [...] By leveraging AI, venture funds can process and analyze vast datasets, uncovering trends, patterns, and insights that were previously inaccessible due to the complexity and volume of the data. This deep analytical capability allows for more informed, data-driven decisions, reducing reliance on intuition and increasing the likelihood of a VC investment’s success. AI's predictive analytics further enable venture capitalists to assess the potential growth trajectories of startups with greater

• Unlocking the power of AI in venture capital: Efficiency, insights, and ...

  With ChatGPT monthly visits at 4.67 billion (up from 1.8 billion in March 2024), it’s clear that the world continues to embrace AI. And the venture capital industry is no exception. As AI evolves, VCs continue to find new ways to incorporate AI-powered solutions to improve efficiency and effectiveness. Ninety-two percent of VCs are using AI in their firms to optimize due diligence, manage relationships, and discover new investment opportunities. [...] In 2025, 64% of VC investors report using AI to accelerate researching companies, up from 55% in 2024. And 76% report using AI to help automate daily tasks, up from 62%. Notably, there's one thing investors are using AI for less—decision making purposes. While impressive for things like automating data entry and speeding up research, AI is best used as a supplemental tool to support data collection and analysis to give investors the information they need to make better deal decisions. [...] Automating daily tasks is currently one of the most important uses of AI in VC firms—76% of firms use AI to automate tasks and increase productivity. Whether it’s automating notetaking during meetings, data entry, or pitch deck analysis, AI can help unburden investors from the important, but often mundane, daily tasks.

• Increased exit activity and continuing focus in AI sees Global VC ...

  Looking ahead to Q4’25, global VC investment is expected to remain relatively stable, fueled by continued momentum in AI model development, industry-specific AI applications, and AI infrastructure. Robotics is also anticipated to gain further traction among VC investors over the coming quarter. Given AI’s dominance, companies without AI-driven capabilities could find it increasingly challenging to attract funding. However, in regions such as Africa, Latin America, and Southeast Asia, fintech is [...] The Americas led with $85.1 billion, while Asia saw muted investment at $16.8 billion. AI continued to dominate VC activity, with significant funding rounds for AI model development and applications. The US accounted for most of the VC investment in the Americas, while Europe saw solid growth. Global exit value climbed to $149.9 billion, the highest since Q4'21, driven by renewed IPO activity. Looking ahead to Q4'25, global VC investment is expected to remain stable, with AI continuing to [...] AI continued to dominate VC investment activity in other regions as well in Q3’25. In Europe, France-based Mistral raised $1.5 billion and UK-based Nscale raised $1.5 billion. In Asia, Australia-based Firmus raised A$330 million ($220 million), while China-based MiniMaxAI raised $300 million and South Korea-based Rebellions raised $244 million. In addition to startups engaged in foundational AI model development, venture capital investors worldwide demonstrated increasing interest in AI-powered

• In 2026, venture capital's hunger for AI will be insatiable

  More than half of all VC dollars—and 36% of total deals—now flow to AI companies, according to a recent Silicon Valley Bank report. Crunchbase recently reported that 14% of all global venture investment in 2025 went to AI giants OpenAI and Anthropic. The year also saw huge deals like a $2 billion seed round raise by Thinking Machines Lab, the AI startup founded by former OpenAI CTO Mira Murati.

• AI Deals in 2025: Key Trends in M&A, Private Equity, and Venture ...

  Thus far, the 2025 AI deal market has been characterized by significant growth and evolving investment strategies, with AI now commanding more than 50% of global VC funding. The market is witnessing a shift toward integrating AI into enterprise workflows, with a notable increase in mega-round investments and a resurgence of acqui-hires as strategic hiring strategies.