How AI is reshaping the venture capital landscape

Artificial intelligence is no longer a distant concept - it is a transformative force that is redefining industries and reshaping the rules of innovation and investment. In venture capital, its impact is particularly profound, influencing not only what firms invest in, but how they operate, evaluate, and support the companies in their portfolios.

As part of an ongoing editorial initiative, CTech has launched the VC AI Survey, a series of in-depth interviews with dozens of leading venture capital investors to understand how AI is affecting their business routines, operational strategies, and long-term thinking. This project sheds light on how AI is embedded in the daily workflow of venture capital funds, offering a rare look at how technology is rewriting the internal playbook of the investment world. READ MORE

From Deal Sourcing to Exits: The AI Advantage in Venture Capital

Artificial Intelligence is fast becoming the next big disruptor in the venture capital landscape, not just as an investment theme but as a transformative internal tool. In India, firms are doubling down on tech-led diligence and proprietary data-driven strategies. As AI adoption deepens, it promises to sharpen competitive edges, even as challenges around infrastructure and talent persist.

According to a recent report by Gitnux, 42 per cent of VC firms globally use AI for deal sourcing, while 68 per cent of the firms believe that this technology will significantly improve investment decision accuracy. The report further stated that in deal sourcing and market research, proprietary deal-scanning tools and analytics platforms are adopted by 75 per cent of top-tier VC firms worldwide. READ MORE

Private equity sits on $1 trillion amid uncertainties, M&A stalls, PwC says

Private equity firms are holding about $1 trillion in unsold assets, PricewaterhouseCoopers (PwC) said on Wednesday — capital that, in a typical market environment, would have been returned to investors.

High interest rates in the United States, President Donald Trump’s on-again, off-again approach to tariff policy, and geopolitical uncertainties have eroded company valuations and contributed to firms holding onto portfolio firms far longer than expected. READ MORE

How Private Equity Killed the American Dream

In her new book, Bad Company: Private Equity and the Death of the American Dream, journalist and WIRED alum Megan Greenwell chronicles the devastating impacts of one of the most powerful yet poorly understood forces in modern American capitalism. Flush with cash, largely unregulated, and relentlessly focused on profit, private equity firms have quietly reshaped the US economy, taking over large chunks of industries ranging from health care to retail—often leaving financial ruin in their wake. READ MORE

What the Wright Brothers can teach science entrepreneurs about how to survive a funding pullback

What happens when venture capital and government pull back from science entrepreneurs at the same time? Many scientists think we’re about to find out, and are looking at how we can preserve our country’s innovative leadership. While others are pulling back, at Activate we’re leaning in and asking, “What should we teach the scientist founders we support so they can find the opportunity in this crisis?” READ MORE

A Tale Of Two Cities In Venture Capital

“It was the best of times, it was the worst of times.” On the heels of Super Venture & Super Return Berlin, and a LP/GP summit in Montreal organized by Inovia, I wanted to reflect on what felt like a panoramic view of the industry, across 1) managers of VC funds 2) startups raising capital and 3) incumbents in the public markets. What struck me most wasn’t any one deal or datapoint, but the duality of two starkly different realities.

The technology industry today, for startups and venture capital firms alike, is best described as a tale of two cities. READ MORE

AI Roll-Up Deals Accelerate as Top VC Firms Edge Towards Private Equity

The AI roll-up has officially gone mainstream.

Large VC firms like General Catalyst, Thrive Capital, and 8VC are increasingly running the private equity playbook of buying legacy businesses and trying to improve their performance. The special sauce is AI, these investors believe, and half-a-dozen top-tier firms have now backed efforts to combine established companies in the same market and supercharge them with artificial intelligence. READ MORE

I'm a VC founder. Here's a day in my life, from coffee and emails at 4 a.m. to taking a Waymo to dance class at noon

I got my first opportunity in venture capital in 2012, and as soon as I found venture, it was like two puzzle pieces fitting together.

In 2022, I founded Baukunst, a VC fund that I'm a general partner at with three other partners. We invest in brand-new technology startups in the pre-seed phase on the frontiers of technology and design. We raised a $100 million debut fund, and now we're off to the races. READ MORE

Private equity’s roll-up playbook faces $8B test

One of private equity’s favorite playbooks is about to get tested.

Hellman & Friedman and Warburg Pincus are seeking a buyer for Edelman Financial Engines, a network of financial advisors they built by acquiring small teams and solo operators. The $8 billion asking price, related by people close to the process, struck a few bidders as ambitious. READ MORE

What is the biggest risk facing private equity? These buyout bosses share their thoughts

From low economic growth to a push into the retail market, a swathe of challenges abound in the buyout industry. Private Equity News caught up with senior figures at the SuperReturn conference earlier this month to ask them what they see as the biggest risk facing PE today.

Here’s what they said. READ MORE

Private-equity firms offer olive branch in junior banker recruiting

At least two private-equity firms have told recent graduates they will delay their recruiting process to hire junior associates for positions that begin in 2027.

Apollo Global Management sent a letter Wednesday to its candidates, indicating as much. And General Atlantic followed suit Thursday. READ MORE

How Attractive Is Private Equity?

Asset managers selling private assets to everyday investors claim to have found investing’s holy grail: lower risk (or at least less volatility) and better returns. Is that true? The answer is mixed.

The first claim is fictional. Private securities’ prices only seem less variable because we don’t see them change throughout each trading day. As AQR Capital Management co-founder Cliff Asness puts it, their ostensible stability is “volatility laundering.” READ MORE

Visualizing the World’s Top 50 Private Equity Firms in 2025

In the last five years, the top 300 private equity (PE) firms raised $3.3 trillion—up just 0.4% from last year’s total.

Overall, PE fundraising has slumped in recent years, with many expecting the trend to continue in 2025. At the same time, the industry is getting increasingly divided—with the six largest players raising 60% of total funds in the first nine months of 2024. READ MORE

How to tell is your startup idea is attractive to VC investors

So let me break down exactly what it takes to be VC-backable and explain what VCs are looking for, portfolio construction and the steps to check if it’s a fit for your company.

Not every business is a fit for a VC and that doesn’t mean it isn’t a good business! It just means that it doesn’t fit the VC business model, but it can in fact be a great fit for other groups of investors. READ MORE

VC Investor Confidence Drops in ‘Increasingly Uncertain Macroeconomic Environment’

The share of venture capital (VC) investors who expect VC funding to rise over the next year has fallen by 20 percentage points over the last six months, according to PitchBook.

The share dropped from 58% in the second half of 2024 to 38% today, the capital market intelligence platform said in its H1 VC Tech Survey released Wednesday (June 4).

In addition, the share of investors who expect a moderate decline in VC funding over the next year rose from 9% in the second half of 2024 to 28% today, according to the report. READ MORE

Chime almost died in 2016, turned down by 100 VCs — today it IPO’d at $14.5B

One of the year’s most anticipated IPOs took place on Thursday when neobank Chime raised $864 million in its IPO, pricing its shares at $27, which is above its previously announced range of $24 to $26. That gave it a starting market cap of about $9.8 billion.

While some would point out that this is far below its last private valuation of $25 billion, according to PitchBook’s estimates, shares opened at $42, putting it at $14.5 by midday in heavy trading, according to Yahoo Finance. It closed the day at $37 and about a $12 billion market cap. That’s still well shy of it’s yesteryear high, but it was a healthy response from retail investors all the same. READ MORE

The end of corporate venture capital (as we know it)

Corporate venture capital (CVC) is widely seen as essential to corporate innovation. But most programs fail to deliver. They mimic VC or offer passive optics, promising to “see around corners” without ever forcing action. Many become innovation theatre, expensive experiments with a five-year shelf life.
That’s not just a missed opportunity, it’s a threat. The average lifespan of an S&P 500 company has collapsed from 61 years in 1958 to less than 18 today. Since 2000, 52% of Fortune 500 companies have disappeared. In a world of accelerating disruption, optionality is no longer enough.

Survival now demands strategic intent – and the courage to act on it. What if we reframed the role of corporate venture capital entirely? READ MORE

Search Funds: A Rising Asset Class Outperforming PE and VC

Search funds are quietly minting millionaires by buying stable, profitable businesses while venture capital and private equity struggle with depressed valuations and exit freezes.

A quiet revolution is unfolding in the investment world. While venture capitalists chase unicorns and private equity firms compete for mega-deals, search funds are targeting a different opportunity: profitable, owner-operated small businesses in need of succession. Here's why this entrepreneurial investment vehicle is outperforming both VC and PE. READ MORE

How To Build A Capital-Efficient Startup For Long-Term Value

In today’s startup landscape, raising venture capital is often treated as a milestone — proof that a company is gaining traction. But after building and exiting multiple ventures, I’ve come to see things differently.

While, depending on the industry, VC funding can unlock important resources and mentorship, it’s not the only path to success, and often not the most sustainable one. My thoughts here should not be interpreted as a disparagement of venture capitalists or financial investors — I have close personal relationships with individuals who operate successful VC firms. Rather, I’d like to present another alternative capital strategy for founders. READ MORE

The Growing Secondary Market In Venture: A Conversation On The Emergence Of VC Continuation Funds

In a slow exit market, venture capital firms are turning to liquidity strategies typically used in private equity. One of these is the creation of continuation funds to extend the life of investments beyond a 10-year fund term and to provide returns to limited partners.

Crunchbase News recently spoke with Mathew Eapen, partner,  and Shane Goudey, partner and chair of the venture funds practice at law firm Sidley Austin. They advise private investment funds, including venture capital and private equity, on their formation and ongoing operations. READ MORE