AI-Powered High-Velocity Venture Evaluation
Alex Johnson, co-founder & CEO of Velvet, on vertical AI for venture capital
This shift means venture advantage is moving from getting into the room first to deciding faster and helping portfolio companies win after the check clears. As sourcing gets digitized through platforms like AngelList and data products like Harmonic, more firms can see the same deals. The scarce asset becomes speed and judgment, then turning that judgment into realized cash returns through follow on support and liquidity.
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AngelList already showed that software can turn fund formation and syndicates from a bespoke service into a repeatable workflow. Once access is productized like that, fewer firms can rely on proprietary distribution alone, so evaluation quality matters more.
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The practical workflow is moving from analysts copying deck data into spreadsheets to AI systems reading decks, data rooms, emails and CRM records, then drafting memos, flagging risks and surfacing warm customer or co investor intros. That compresses a 7 to 14 day review cycle and makes value add part of diligence itself.
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Generating DPI becomes part of the same stack. Secondary venues like Hiive make liquidity easier to find, while large institutions have paid up for private market data businesses like Aumni and Preqin. That shows the economic value sits in owning the data and decision layer around private company positions, not just sourcing flow.
Over the next few years, venture firms that look more like fast moving underwriting shops will outperform. The winning tools will sit on top of sourcing databases, internal CRM and secondary channels, helping funds pick the right company quickly, map the specific help they can provide, and create liquidity paths that turn paper marks into DPI.