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Friday, June 6, 2025

Venture Capital Bets on AI for Smarter Investing

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Venture capital firms in India are increasingly embracing artificial intelligence (AI) and automation to enhance efficiency in sourcing and managing deals. With growing workloads and a surge in startup pitches, these firms are leveraging generative AI (GenAI) tools and automation platforms to handle routine tasks, freeing up bandwidth for strategic decision-making.

From GenAI to automation tools: boosting internal efficiency

Firms such as Auxano Capital and IvyCap Ventures are at the forefront of this transformation. Auxano has already automated 30–40% of its recurring internal processes, while IvyCap is aiming to automate 60% of its entire deal flow, investor engagement, and portfolio oversight by the end of the year.

These automation efforts use a combination of GenAI, Airtable, Zapier, and Paperform to manage everything from pitch evaluation and due diligence to communication and data entry. The goal is to automate up to 80% of internal tasks, dramatically reducing manual overhead and improving turnaround times.

Also read: India’s MSMEs Lag in AI Adoption: BCIC

Automation in action: streamlining VC workflows

Good Capital, a backer of Meesho, Apnibus, Solar Square, and Orange Health, reports that 70–80% of its internal operations are now automated. The firm has built workflows that automatically capture and centralise information across WhatsApp, email, voice notes, and links—providing real-time updates and consistent tracking.

Automation is also transforming early-stage evaluation processes. Large language models (LLMs) are being used to review pitch decks, conduct sector research, and generate content. This AI-driven approach allows VCs to process high volumes of startup data more effectively while preserving human input for key investment decisions.

Encouraging AI adoption across portfolio startups

Beyond internal use, VC firms are pushing their portfolio companies to follow suit. They are encouraging startups to automate 40–50% of their routine operations by FY26, highlighting the long-term benefits of AI adoption in scaling sustainably.

As the ecosystem evolves, AI is no longer just a technology trend—it’s becoming a core operational strategy for venture capital. By rethinking workflows and integrating automation, VC firms are positioning themselves for faster, more agile, and data-driven investment outcomes.

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