Onward, a Fundrise Production
28: Investing in AI, with Tomasz Tunguz
Oct 18, 2023
Tomasz Tunguz, Theory Ventures General Partner, discusses the reality of AI's potential and the role of tech incumbents. The conversation dives into structured vs. unstructured data, infrastructure to software development in AI, and economic analysis. They explore different types of AI models and the significance of data in investing. Lessons from 15 years of venture investing are also shared.
48:54
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AI Summary
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Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- The rise of machine learning and artificial intelligence presents opportunities for startups to leverage unstructured data and derive value from it.
- Generative AI, facilitated by neural networks, is entering the commercialization phase, leading to rapid adoption and application in various industries.
Deep dives
Venture Capital Shifted from Traditional Model
The venture capital industry has undergone significant changes in the past decade. The asset class has grown from $8 billion to around $250-300 billion, with about 80% of the increase being driven by non-traditional venture capital. This shift has led to the formalization and expansion of venture capital partnerships, creating an equivalent of investing corporations. Two major drivers of this change have been the Federal Reserve's quantitative easing, which increased available capital, and the increasing cost of going public for startups. With the longer duration of private equity investments offering better returns in a low-interest-rate environment, more funding has been directed towards private markets.
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