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VC firms employ AI to automate deal sourcing & screening
- Venture capital firms are increasingly using artificial intelligence (AI) and automation tools for deal sourcing and screening.
- Auxano Capital has automated about 30-40% of recurring tasks, aiming to automate 60% by the year-end.
- The complexity and volume of VC tasks drive the adoption of AI for evaluating pitch decks, sector research, data entry, and more.
- Good Capital has automated 70-80% of internal tasks, using tools like Airtable, Zapier, and Paperform for follow-ups and information capture.
- AI aids in first-level triage of inbound deals at Good Capital, improving efficiency without compromising quality.
- Automation streamlines deal sourcing and initial analysis, allowing VCs to focus on strategic aspects and deeper engagement with startups.
- IvyCap Ventures uses AI for deal shortlisting and has appointed a chief technology officer for tech-driven transformation.
- AI helps in early detection of promising opportunities at Bharat Innovation Fund by sifting through startup data.
- VCs recognize the importance of human judgement in dealmaking, indicating that full automation may still be a few years away.
- Firms emphasize that AI cannot replace the human touch in decision-making, highlighting the necessity of trust and judgement.
- VCs are promoting AI adoption in portfolio companies, urging startups to target automation of 40-50% of operations by FY26.
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