This Week in Startups

AI investments, VC ecosystem geography, and VC hypocrisy | E1956

May 27, 2024

01:07:53

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Topics discussed include AI investments, potential washout of overfunded startups, VC hypocrisy, and the role of geography in the VC ecosystem. The episode features insights from Jaime Matus, Michael Eisenberg, and Jason Calacanis on emerging trends in the startup world.

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Quick takeaways

AI investments in vertical and horizontal applications totaled $27.8 billion, highlighting the significance of proprietary data sets.

Venture funds are increasingly investing in AI startups, particularly in hardware, semiconductors, and automation platforms, showcasing the sector's growth potential.

Geographic location plays a crucial role in venture capital investments, with specific regions like California, New York, and Boston showing high success rates for unicorn exits.

Deep dives

AI Investment Trends in 2023

Pitchbook data highlights that vertical applications attracted $27.8 billion, while horizontal platforms received $27.1 billion in 2023. The focus on autonomous machines led to a $3 billion investment and AI and ML semiconductors received $2.4 billion. Noteworthy investments in AI since 2013 include companies like Verilume Maritime AI and Lemonade, revealing a vertical integration approach and emphasis on proprietary data sets.

Introduction

2min

Charity Poker Event and AI Investment Discussion

2min

Investing in AI: Transforming Industries

7min

Evolution of Businesses and AI Investments

6min

The Evolution of Eyeball Models in Valuation

7min

Navigating AI Investments with Discipline and Strategic Selection

2min

Reflections and Challenges of a Seasoned Venture Capitalist

11min

Navigating Startup Efficiency and Tech Talent Challenges with Lemon.io

2min

Navigating Hypocrisy in Venture Capital

16min

10.

Exploring Startup Ecosystems and Venture Capital Investments

13min

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Todays show:

David Weisburd hosts Jaime Matus, Michael Eisenberg, and Jason Calacanis to discuss AI investments and the potential washout of overfunded startups (4:11). They also touch on VC hypocrisy (38:47), and the role of geography in the VC ecosystem (54:53).

Timestamps:

(0:00) David Weisburd intros Jaime Matus, Michael Eisenberg, and Jason Calacanis

(4:11) Pitchbook data summarizing the total amount of capital invested in AI

(12:12) Squarespace - Use offer code TWIST to save 10% off your first purchase of a website or domain at http://www.Squarespace.com/TWIST

(16:33) Predicting a washout of overfunded AI startups and sky high valuations

(25:30) OpenPhone - Get 20% off your first six months at https://www.openphone.com/twist⁠

(26:57) Discussing Michael Eisenberg's career and investment experiences

(37:22) Lemon.io - Get 15% off your first 4 weeks of developer time at https://Lemon.io/twist

(38:47) Discussion on Greg Isenberg's tweet about VC hypocrisy

(54:53) Fundraising rankings by ecosystem

Follow Jaime:

X: https://x.com/JaimeMatusVC