Source item
Open original source ↗In the mid 2010s, I experimented with something I called Capital as a Service (CaaS).
Companies sent us their data, we ran it over a bunch of rules and sent back an automated investment decision. We funded more than 50 companies. That portfolio returned more than 2x DPI and generated a mid-teens IRR.
What didn’t work: the load and cost of setting up and managing all the blockers and legal entities necessary to invest around the world.
Once this gets fixed, CaaS is the way to go.
Quoted context
These are the quoted author’s words.
the venture capital bloodbath is coming and most vcs have zero idea agents will replace 90% of what associates and principals actually do: • deal sourcing through network analysis • due diligence via automated data mining • portfolio monitoring with real-time metrics • pattern matching across 10,000x more deals what exactly are you getting paid for when an agent can analyze every startup in your sector in 3 minutes? the entire industry is built on information asymmetry that ai just eliminated most funds will become algorithmic within 24 months the only vcs who survive are the ones who can actually build companies, not just write checks and send intros
geoffwoo ↗