VC firms rely on AI to find the right deals. Where else is AI used in the investment process?
Getty Images / Vertigo3d, Collage: Startup scene

Greater efficiency, better deal coverage, better screening and better investment decisions. According to the Data-Driven VC Landscape 2024 Report, these are the reasons why VCs should work more data-driven. Earlybird partner and tech lead Andre Retterath defines data-driven venture capital firms (DDVCs) as follows: In addition to analysts, investors and portfolio managers, there must be at least one programmer on the team and the firm must be able to demonstrate that it develops tech tools internally that improve the investment process. There are around 190 such DDVCs worldwide. 35 percent of DDVCs say that their data-driven tools are responsible for half of their current deals. The American market research company Gartner even predicts that by 2025 around 75 percent of all venture investment decisions will be made with the help of artificial intelligence (AI).


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