During the PAN-IIT Seattle 2024 Conference in Bellevue, Washington, two Seattle-area venture capitalists advised startup founders and CEOs to be cautious when discussing their company’s use of AI in pitches to investors. Vivek Ladsariya, managing director at Pioneer Square Labs, warned that over-branding with AI could make a company appear unserious, ultimately affecting their credibility with serious investors and customers. Heather Redman, co-founder and managing partner at Flying Fish, emphasized the importance of not overstating the role of AI in a company’s strategy to avoid losing credibility.
Despite the warnings, Vikram Chalana, CEO of Seattle startup Pictory.ai, humorously noted that his 4-year-old company actually has AI in its domain name, highlighting the core role AI plays in their product which automates video creation. Chalana stressed the importance of focusing on solving a customer problem rather than just touting the technology. Ladsariya also emphasized the need to highlight what the technology can do for customers rather than just focusing on the general technology itself.
Flying Fish has had a core thesis on AI since its launch eight years ago, specifically targeting founders and teams with AI backgrounds. While a PhD on the team is not a must-have, it is seen as a nice-to-have qualification. Anoop Gupta, CEO of SeekOut, mentioned that companies do not necessarily need AI experts to leverage generative AI. He believes that smart engineers and computer scientists can learn how to work with AI through conceptualization and problem-solving skills, without the need for specialized machine learning expertise.
Chalana echoed Gupta’s sentiments, pointing out that advanced AI experience and education do not always translate to success in working with generative AI. He mentioned that the best generative AI engineer on his team is actually a 26-year-old software developer, highlighting the importance of a strong foundational understanding of AI principles and problem-solving skills over specialized expertise. Overall, the consensus among the venture capitalists was that while AI is becoming increasingly essential in business strategies, founders should approach the technology with a focus on solving customer problems and showcasing the tangible benefits it can bring rather than overhyping the technology itself.
