In a bold move that signals how artificial intelligence is transforming venture capital, Davidovs Venture Collective has fired all its analysts and is using AI tools to help run deals for its new $75 million fund. The four-year-old firm, co-founded by married general partners Marina Davidova and Nick Davidov, is arming its network of 170 limited partners with AI agents to source and vet investments in AI startups, according to recent analysis of the shifting VC landscape.
AI-Powered Deal Sourcing and Due Diligence
DVC eliminated five part-time and full-time analyst roles more than a year ago, positions that traditionally help source and vet deals. Instead, the firm is leveraging its extensive network of limited partners from leading technology companies including OpenAI, Google, Meta, Microsoft, Tesla, SpaceX, and Perplexity. These LPs use custom-built AI agents to assist with deal memos, due diligence, and portfolio monitoring – tools they helped develop themselves.
“We have really incredible talent that we would never be able to hire,” Davidov told Business Insider. “They’re the kind of people that Zuckerberg offers a hundred million dollars to, and they work for us for free on their weekends.” The AI systems can also identify founder needs and match them with relevant experts within DVC’s community, creating a comprehensive support ecosystem for portfolio companies.
Profit-Sharing Model with Expert Community
The unique structure includes a significant profit-sharing arrangement where 30-40% of carried interest from each deal goes to the community of investors. Another 30-40% is allocated to partners, with the remainder divided between the founding couple. This model incentivizes LPs to actively assist founders with hiring, sales, product development, and networking in exchange for their equity participation.
Industry experts note that this approach represents a fundamental shift in how startup companies receive support beyond just capital. The hands-on involvement from experts at top tech firms provides portfolio companies with unprecedented access to industry knowledge and networks, as highlighted in additional coverage of emerging VC models.
Human Judgment Still Crucial in AI-Driven VC
Despite the extensive use of AI technology, Davidova emphasizes that human judgment remains irreplaceable for assessing qualitative factors like a founder’s mental state and resilience. This balanced approach acknowledges both the capabilities and limitations of current AI systems in venture decision-making.
Other VC firms are following similar paths – Point72 Ventures managing partner Sri Chandrasekar predicted that AI could reduce head count by over 50% in the industry. The trend reflects broader technological transformations across sectors, from creative fields like digital art creation to enterprise software platforms, as documented in related analysis of AI adoption patterns.
Expanded Leadership and Fund Details
Alongside the $75 million fund launch, DVC has onboarded two new general partners:
- Mel Guymon, who will spearhead business sales support and governance
- Charles Ferguson, focusing on deal origination
The firm also named Meta AI product manager Alexey Rybak as a venture partner. The new fund has already secured $40 million and is finalizing the remaining amount with institutional investors.
DVC’s seed fund has previously invested $21 million across 120 companies, including Perplexity, Etched, Thinking Machines Lab, and Higgsfield. The firm’s limited partners for the new fund include prominent figures like TechCrunch founder Michael Arrington, Perplexity cofounder Denis Yarats, and Semrush founder Oleg Shchegolev.
Broader Implications for Venture Capital
This move represents a significant evolution in venture capital operations, demonstrating how AI can augment rather than simply replace human expertise. The model combines technological efficiency with deep industry knowledge from practicing experts at leading technology companies.
The transformation mirrors other industry shifts where technology is reshaping traditional workflows, from software development processes to operating system capabilities. As AI continues to mature, data from venture capital performance suggests more firms may adopt similar hybrid models that leverage both artificial intelligence and specialized human networks.
Founded in 2021 with an initial network of 50 LPs, DVC’s rapid expansion to 170 limited partners and a $75 million fund demonstrates the scalability of this innovative approach to venture investing in the AI era.
