TO AI OR NOT TO AI

ThAT IS THE QUESTiON TO ASK A VC

AI has turned into the buzzword to beat all buzzwords. On the one hand, there is no question that is the future and both VC’s and B2B consumers are interested in it. On the other hand AI has become meaningless on its own.

In the past three weeks we spoke with 15 VCs and asked each the same two questions:

“When you hear a pitch with AI what immediately goes through your head?” 

AND 

“What do you want to hear next?”

The answers:

• 4 said they stop listening unless the pitch is SaaS or tech related and it makes sense.

• 6 said it peaks there interest and they are skeptical

• 2 said it means the same as “innovative,” they simply don’t hear it.

• 3 said it peaks there interest
  
  

Here is where it gets telling, the answer to “ what do you want to hear next,”

each answered “how it is used, the utility of it.”

Explain why you're using AI.

Explain how you're using AI.

Explain the value it brings.

Explain the safeguards you are using.

In 2023 sprinkling“AI” into your deck got you at the table and raised your valuation.
In 2024 saying the value AI creates will get you over the finish line

AI startups had higher valuations in 2023 than non-AI startups. It wasn't just early stage startups that saw this trend; those raising Series A & B rounds also saw valuations over 1.5 times higher.