20VC: Why To Win in AI, Investors Need to Change Their Approach | Why VC is Run by Principals and Associates and is a Broken System | The Bull Case for Anthropic & Whether Deepseek Changes Their Strategy with Nabeel Hyatt @ Spark Capital
This interview podcast features Harry Stebbings interviewing Nabeel Hyatt, a general partner at Spark Capital, about the changing landscape of venture capital in the age of AI. The conversation begins with Hyatt expressing concern over the industry's reliance on outdated investing mindsets and metrics, particularly in the context of rapidly evolving AI technologies. Hyatt argues that the current system, driven by principals and associates seeking promotions rather than long-term value creation, hinders true innovation. He advocates for a return to a more artisanal, founder-centric approach, emphasizing the importance of subjective bets, deep product understanding, and long-term vision over simple heuristics like ARR. As a concrete example, Hyatt highlights Spark Capital's decision to remain a small team, prioritizing deep engagement with founders over rapid deal flow. The discussion concludes with a framework for classifying AI startups (adaptation, evolution, revolution), emphasizing the need for venture capitalists to focus on truly disruptive, rather than merely adaptive, technologies.
