How web3 and AI technologies will fit together and how will they affect the investment decision-making process in general? The topic is vast and interesting, and it is obvious that there are not so many intersection points yet, for example, the monetization of digital assets, i.e., company data will represent a special type of assets, and they will have to be stored in distributed and verified networks, since the world around will be full of fake data generated by the same AI networks, and only distributed registries and trained AI algorithms will be able to understand where the truth is and where the fake is, so investors will look for sources of verified information and data. [Examples of emerging startups working in data verification: Golden.com with more than $50M USD in total funding, and Optic.xyz, which raised $11M USD seed round in mid 2022].
It turned out that sentiment analysis of news and search for signals in the market is the most expected and still missing. So, for example, with an increase in the volume of site visitors and an increase in the company’s mention in the media, as well as the appearance of mentions or reposts of news from the CEO of the project by some angels, the system could issue a signal that can be interpreted as ‘important’, and the company would appear on dashboard of the investor marked ‘study in detail’.
Another important part of the product could be finding the ‘right’ founders, and there are many different approaches to valuation, of which I liked Ali Tamaseb’s study, where he breaks down 50 signs of the ‘right’ founders who built billion-dollar companies. One could look at early investors mentioned in this study, such as Elad Gil (Mixer Labs, Color Genomics), David Sacks (PayPal, Yammer), Biz Stone (Twitter), Peter Thiel (PayPal), Alexis Ohanian (Reddit), Mark Benioff (Salesforce), Matt Oko (Yes Vinci), Kevin Hartz (Eventbrite) and many others. Such founders are also successful business angels, but it is only possible to monitor their investment activity through automated systems because there are a lot of such people, and it is even better to track when several of these angels entered into one of the early transactions.