A VC firm says it fired all its analysts and is using AI to help run deals for its new $75 million fund

In a bold move that highlights the growing influence of artificial intelligence in venture capital, Davidovs Venture Collective (DVC) has announced the termination of its analyst team to pivot towards AI-driven solutions for managing investments. The San Francisco-based firm, co-founded by Marina Davidova and Nick Davidov, recently launched a $75 million fund aimed at Series A and B AI startups. Instead of relying on traditional analysts for deal sourcing and evaluation, DVC is leveraging a robust network of 170 limited partners (LPs) comprising industry veterans from companies like OpenAI, Google, Meta, and Tesla. These LPs are equipped with AI tools to enhance their capabilities in creating deal memos, conducting due diligence, and monitoring portfolios. Davidova revealed that the firm had previously employed both part-time and full-time analysts, but over a year ago, DVC transitioned away from these roles in favor of AI technologies. The AI agents, co-developed by the LPs, are designed to identify the specific needs of startup founders and connect them with the right experts from within the network. This collaborative approach enables LPs to assist new entrepreneurs with hiring, sales strategies, product development, and networking opportunities, all in exchange for a share of the profits generated from investments. Davidov emphasized the exceptional caliber of talent available through their LP network, stating, "They’re the kind of people that Zuckerberg offers a hundred million dollars to, and they work for us for free on their weekends." While AI has significantly boosted productivity at DVC, Davidova cautioned that human insight remains irreplaceable, particularly when assessing the mental resilience of founders. The trend of utilizing AI within venture capital isn't isolated to DVC; other firms are also exploring similar strategies. For instance, Point72 Ventures has indicated that AI could potentially reduce their workforce by over 50%. DVC, which launched in 2021 with an initial network of 50 LPs, has invested $21 million across 120 companies, with notable investments in Perplexity and Thinking Machines Lab. As part of its expansion, DVC has also welcomed two new general partners, Mel Guymon and Charles Ferguson, and appointed Meta AI product manager Alexey Rybak as a venture partner. Guymon will lead initiatives in business sales support, while Ferguson will focus on deal origination. Currently, the new fund has secured $40 million and is in the process of finalizing the rest with institutional investors.