NxtGen Capital

𝙏𝙝𝙚 𝙛𝙪𝙩𝙪𝙧𝙚 𝙞𝙨 𝘼𝙄, 𝙗𝙪𝙩 𝙬𝙝𝙚𝙧𝙚 𝙙𝙤 𝙮𝙤𝙪 𝙨𝙩𝙖𝙧𝙩 𝙞𝙣𝙫𝙚𝙨𝙩𝙞𝙣𝙜? 😵 In recent months, we have engaged with numerous AI focused funds and we’d like to share our key observations: Promising AI Sectors 🤩: - AI Developer Tools: Just as the wave of cloud computing birthed successful companies like Snowflake, we anticipate a similar wave of companies supporting AI development to emerge. - Ground-up AI Solutions for Enterprise Challenges: Innovative AI solutions tailored to address enterprise problems from the ground up. Less Appealing AI Sectors 🙄: - Foundational Models: Investments in foundational AI models already have substantial funding backing them. For those seeking early-stage opportunities, this ship may have sailed years ago. - Overreliance on OpenAI/Chat GPT: OpenAI's offerings are unlikely to remain as cost-effective as they are currently. Prudent investment strategies should consider this impending change. At NxtGen, we believe in the necessity of extensive portfolio diversification to withstand the various hype cycles inherent to venture capital investing. Following the crypto boom and bust, the current spotlight is now on AI. While we remain cautious about being overly entangled in the hype, we are actively seeking to invest in managers with a proven track record of valuation discipline. Follow NxtGen Capital for more information about VC fund investments! #venturecapital #ai #vcfund #chatpgt Wee Ping Goh Shihao Koh Sean Teo