AI Is Great At Analyzing The Past. Venture Capital Bets On The Future

Venture capital firms are increasingly using AI to screen deals, review pitch decks, compare competitors, and flag risks.

The article argues this works well for familiar markets, but is less reliable for spotting truly disruptive startups.

AI tools tend to lean on historical patterns, which can make them undervalue companies that look unlikely before they succeed.

Examples like Airbnb, Microsoft, and Facebook are used to show how breakthrough startups often seemed implausible at first.

The same concern is applied to future bets such as small modular nuclear reactors and other new markets.