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

The speed of innovation with AI is incredibly fast, with breakthroughs now happening in days and weeks instead of years. This has important implications for companies, as it means smaller teams can achieve significant milestones with less capital. Traditional capital allocation models for venture capitalists, which typically involve writing large checks, may need to change. Company formation and capital allocation will be done in a different way, with smaller amounts of money being invested over a longer period of time. The role of venture capitalists is also changing, as startups are no longer required to have extensive sales and marketing teams. Instead, entrepreneurs can use AI to disrupt existing businesses by building cheaper products with fewer employees.