Because of AI, the Venture Capital Industry Will Change a Lot

The speed of recursion in AI is increasing rapidly, with breakthroughs now being measured in days and weeks instead of months or years. This has significant implications for companies, as starting a company can now be done with a small team rather than a large one. It also affects investors and venture capitalists, as the traditional capital allocation models based on large investments may no longer be appropriate. Company formation and capital allocation models need to adapt to the changing landscape. The VC job is evolving, and startups need to focus on disrupting existing businesses by using AI tools to cut costs and deliver products more efficiently. Recursion in AI allows entrepreneurs to build cheaper products using autonomous agents, eliminating the need for a sales team.