Short excerpt from a Precursor Ventures video discussing the current dominance of AI in venture investing. The speaker argues that many investors are focused only on AI, which forces funds and founders to decide whether to 'play' that game or maintain conviction in non-AI businesses — while ensuring the fund remains solvent to capture future returns when attention shifts back.
I think what you also have to accept is like, you need founders who understand this too. I introduced one of our portfolio companies to a prospective investor. He goes, there's nothing wrong with this company. It's exceptional. But I'm only doing AI right now. It's funny I tell you, like, you can't tell somebody what they should be excited about. I mean, you can try. I don't think that's very effective. At some point you have to accept right now AI is the game on the field. And if you're not going to play that game, you have to have high conviction and then you have to, you know, remain solvent as a fund. You have to be able to like, stay in business. I look at our portfolio, we have plenty of non AA businesses that are doing great. I believe at some point attention will come back to those businesses. But we have to be around and alive as a fund when that happens. Otherwise we don't get the prize.
