1Mby1M Virtual Accelerator AI Investor Forum: Daniel Ibri, Mindset Ventures (Part 5)

Sramana Mitra: Earlier you said you wanted to discuss how venture capital is changing. We have a little time, so I want to explore that.

There’s a point of view circulating that even though venture capital is focused on vertical AI right now, AGI could make vertical AI irrelevant. And if AGI arrives during the timeframe when current gen-AI companies mature and prepare for exits, those exit opportunities might disappear. These are existential threats for venture capital. How do you think about that?

Daniel Ibri: I agree. There’s another very real threat: portfolio companies we invested in four or five years ago. They’re still growing, but they weren’t built on AI. They disrupted incumbents back then, but now new companies using AI are disrupting them.

If our portfolio companies don’t move fast enough to adopt AI and rebuild, they’ll be disrupted. Their value could collapse because they’ll look outdated. A company started four or five years ago is already old if it doesn’t have AI built in.

So there’s inherent portfolio risk. How do companies reinvent their tech stack and strategy fast enough to stay ahead of newcomers who are more efficient with AI?

Sramana Mitra: How are your portfolio companies dealing with this? One advantage they have is customer relationships—they see problems earlier. One way to respond is to build a small professional services arm that understands AI, start solving customer problems with AI, and then productize those solutions. How are your companies doing this?

Daniel Ibri: Agreed. Companies are thinking about how to adopt AI to become more efficient, more differentiated, and more appealing to customers. Existing customer trust is crucial. Expanding what you do for customers reduces churn and makes the product stickier, preventing disruption.

Most companies now have people dedicated to adopting AI tools and improving efficiency and productivity. It’s a clear challenge.

Regarding venture capital itself: most of our work can be done by AI. Early-stage investing still relies on people—meeting founders, building relationships. That remains essential. But everything else—analysis, competitive landscapes, market sizing, memos—can be done by AI. These tools are improving fast. We’re using them, building on them, and they’re giving us enormous leverage.

Sramana Mitra: Let me offer another perspective. Venture capital is deal sourcing, deal research, and then the crucial part—winning the deal. You might source and research with AI, but winning requires human rapport. Entrepreneurs must want to work with you.

Daniel Ibri: I agree. But competition will intensify because everyone will be able to access the same signals. If everyone can source the same deals, competition skyrockets.

Sramana Mitra: Exactly. Which means the ability to win deals becomes even more important. The best investors historically have succeeded by making contrarian bets—investing where there isn’t a feeding frenzy and helping those companies succeed. If all the signals are publicly available for AI to pick up, those deals will be too competitive.

Daniel Ibri: I totally agree. It comes back to relationships, especially in early-stage investing.

Sramana Mitra: Well, Daniel, thank you for coming back. We’ll keep in touch.

Daniel Ibri: Thank you so much. It was an amazing conversation. Love your publications.

Sramana Mitra: Talk to you soon. Bye.

Daniel Ibri: Thank you, everyone. Bye.

This segment is part 5 in the series : 1Mby1M Virtual Accelerator AI Investor Forum: Daniel Ibri, Mindset Ventures
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