VC Warns of AI Hype Over Substance
Susan Akbarpour, managing partner at CanDo Ventures, cautioned against the proliferation of “AI product wannabes” designed to chase trends rather than solve genuine business problems, arguing that sustainable innovation requires human relationships and contextual problem-solving.
Akbarpour, managing partner at CanDo Ventures since 2016, has reviewed over 1,000 business plans and closed deals totaling $5 billion, focusing on SaaS, AI, and blockchain. She has over 30 years of experience building businesses in technology and media. VCs are increasingly scrutinizing AI startups, moving beyond the hype to demand demonstrable results and proprietary technology. Some are building domain-specific models that general AI tools can't replicate. This shift marks a change from early 2023 when simply mentioning AI could attract investment. CanDo Ventures invests in early-stage startups, emphasizing consumer-centric technologies that move away from traditional data-as-a-product models. The firm focuses on "BASIC" technologies: Blockchain, AI, SaaS, IoT, and Cloud infrastructure. The AI market is projected to reach $1.3 trillion by 2030, with AI potentially contributing to a 21% increase in the United States GDP. However, only 5% of AI initiatives achieve rapid revenue acceleration, highlighting the need for careful investment. Many firms are using AI to enhance existing business strengths, particularly in data-rich industries like digital health and fintech.
