Lessons Learned From Studying The Herd Mentality Of Venture Capitalists

Venture Capitalists (VCs) are often regarded as the architects of innovation, providing the capital that fuels the growth of groundbreaking startups. Yet, the herd mentality in this high-stakes industry is becoming more and more pronounced, leading to potentially precarious situations. As AI dominates the current debate, is it time for a much-needed reevaluation?

In recent years, the world of VCs is like a continuous race from one zeitgeist to the next – like micro mobility, last mile delivery, crypto, or SPACs. If AI is the word on everyone’s lips today, the response is almost Pavlovian. Almost every startup morphes overnight into an AI enterprise to catch the attention of VCs, and meetings are becoming increasingly exclusive to AI pitches.